Page 306 - Accountancy_F5

Solution 9.7 (d)
Msusa & Company Corrected statement of financial position (Extract)

Current asset
Debtors xxxxxx

Less: Amount paid but not recorded 500,000
FOR ONLINE READING ONLY
Current Liabilities
Creditors xxxxxx
LANGUAGE EDITING
Add: Amount paid but not recorded 360,000
Equity
LANGUAGE EDITING
Retained earnings – whereby the whole net profit is retained xxxxxx

Less: Cumulative effect of income statement errors overstated profit 1,860,000

Example 9.8
1. Below is the statement of a financial position of Kipande Enterprises as at 31 st
Dec. 2021.
Kipande Enterprises
Statement of financial position as at 31 Dec 2021
st
Non-current assets: TZS TZS
Furniture 5,000,000
Less: Accumulated depreciation 1,000,000 4,000,000
Current assets:
Inventory 3,500,000
Debtors 3,000,000
Cash 7,275,000
Bank 1,700,000
Suspense account 6,850,000 22,325,000
26,325,000
Equity and liabilities:

Capital 17,825,000
Add: Net profit 8,000,000
25,825,000

Less: Drawings 4,500,000 21,325,000

Liabilities (current liabilities):
Creditors 5,000,000
26,325,000

Student’s Book Form Five
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