Page 283 - Accountancy_F5

Global Motors
A trial balance as at 31 March, 2019
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Details Dr Cr
TZS’000 TZS’000
Capital - 1,800,000
FOR ONLINE READING ONLY
Equipment 53,000
Premises 595,000

Fixtures and fittings 37,000
Bank 319,000
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Purchases 2,400,000
Drawings 402,300
Sales - 2,700,000

Trade payables - 750,000
Trade receivables 1,890,000 -

Cash collected from customers - 810,000
Salaries 300,000 -
General expenses 63,700 -

6,060,000 6,060,000

During 2019, 900 motorcycles were sold on hire purchases.
Global motors prepared financial statements by considering unrealised profit from hire
purchases based on uncollected amounts from debtors.

Required: Prepare the following:

(i) Hire purchases trading account for the year ended 31 March 2019;
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(ii) A profit and loss account for the year ended 31 March 2019; and
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(iii) Statement of financial position as at 31 March 2019.
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2. Ndatulu Transport Ltd. entered into a hire purchase agreement with BananaFinances
Ltd. for purchasing two trailer vehicles on 1 January 2018. The hire purchase
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selling price of the vehicles is TZS 193,725,000 and the cash selling price is TZS
135,000,000. An initial deposit of TZS 45,000,000 was made on that date to be
followed by three annual instalment payments on 31 December:
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Student’s Book Form Five
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