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Solution 9.8 (iii)
Kipande Enterprises
Corrected income statement for the year ending 31 Dec. 2021
st
Net profit as reported 8,000,000
FOR ONLINE READING ONLY
Add: Discount allowed 2,200,000
Discount received 2,200,000 4,400,000
12,400,000
Less: Purchases understated 7,900,000
Corrected net profit 4,500,000
Solution 9.8 (iv)
Kipande Enterprises
st
Corrected statement of financial position as at 31 Dec. 2021
Fixed assets: TZS TZS
Furniture 5,000,000
Less: Accumulated depreciation 1,000,000 4,000,000
Current assets:
Inventory LANGUAGE EDITING
3,500,000
Debtors (3,000,000 + 2,000,000) 5,000,000
Cash (7,725,000 + 450,000) 7,725,000
Bank 1,700,000 17,925,000
Total Assets 21,925,000
Capital and liabilities:
Capital 17,825,000
Add: Net profit 4,500,000
22,325,000
Less: Drawings 4,500,000 17,825,000
Liabilities
Creditors (5,000,000 -900,000) 4,100,000
Total capital and liabilities 21,925,000
Student’s Book Form Five
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