Page 281 - Accountancy_F5

(iii) OKO Ltd.’s Memorandum Hire Purchase Debtors Account

Dr Memorandum hire purchase debtors account Cr

Details TZS Details TZS
Hire purchase sales Bank (down payments):
• Photocopy machine 500,000
FOR ONLINE READING ONLY
• Photocopy machine: 4,500,000 • Motorcycle 600,000
• Sofa set 500,000
• Motorcycle 6,000,000
Bank – Instalments:
• Sofa set 5,000,000 • Photocopy machine (8 × 200,000) 1,600,000
LANGUAGE EDITING
• Motorcycle (2 × 450,000) 900,000
• Sofa set (4 × 250,000) 1,000,000
Goods Repossessed 3,500,000
__________ Balance on Sofa set - Bal. c/d 6,900,000
15,500,000 15,500,000
Balance b/d 6,900,000

Workings 1: Cash received

Deposit = 500,000 + 600,000 + 500,000 = TZS 1,600,000
Instalments received = 1,600,000 + 900,000 + 1,000,000 = TZS 3,500,000
TZS 5,100,000
Workings 2: Cost element of goods repossessed

Amount received = 500,000 + 1,000,000 = TZS 1,500,000
Amount outstanding = 5,000,000 - 1,500,000 = TZS 3,500,000
TZS 5,000,000

Cost of goods repossessed = Outs tan ding instalment # costof processed item
HP selling price

Cost of goods repossessed = TZS 2,450,000

Workings 3: Cost element of an inventory on hire
Amount received
Photocopy machine = 500,000 + 1,600,000 = TZS 2,100,000
Motorcycle = 600,000 + 900,000 = TZS 1,500,000

= TZS 3,600,000

Student’s Book Form Five
268

23/06/2024 17:36
ACCOUNTANCY_DUMMY_23 JUNE.indd 268
ACCOUNTANCY_DUMMY_23 JUNE.indd 268 23/06/2024 17:36