Page 279 - Accountancy_F5

Total assets 187,500,000
Equity and liabilities

Equity
Ordinary share capital 75,000,000
FOR ONLINE READING ONLY
Profit and loss 42,000,000
Current liabilities

Trade payables 18,750,000
Dividend payable 7,500,000
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Bank overdraft 44,250,000
Total equity and liabilities 187,500,000

Workings:
Unsold inventory

300 ,000
Number of television sets = = 500
600
Value of unsold inventory = 600 ,000 # ^ 500 - 400 = TZS 60 ,000 000
,
h
Outs tanding instalment
Unrealised profit = # Gross profit
HP selling price

180 ,000 000 ,000 000
,
,
360 ,000 000 # 120 ,000 000 = TZS 60 ,
,
Example 8.12
OKO Ltd. commenced business on 1 January 2020 selling goods on hire purchases
st
and cash system. During the year ended 31 December 2020 purchases amounted to
st
TZS 270,000,000 and cash sales to TZS 310,000,000. In addition the following sales
were made under the hire purchase arrangement.

Assets Cost HP selling Down Monthly Instalments
price payment instalments paid
TZS TZS TZS
Photocopy 3,000,000 4,500,000 500,000 20 of TZS 200,000 8
machine

Motorcycle 4,000,000 600,000 12 of TZS 450,000 2
6,000,000
Sofa set 3,500,000 5,000,000 500,000 18 of TZS 250,000 4

Student’s Book Form Five
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