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9. The following is the drafted statement of financial position of Mtajimwingi
Enterprises as at 30 April 2024.
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Assets: TZS TZS
Non-current assets at cost 2,040,000
Less: Accumulated depreciation 1,530,000 510,000
FOR ONLINE READING ONLY
Current assets:
Inventory 1,036,000
Debtors 405,000
Bank 582,000 2,023,000
Total assets 2,533,000
Equity and liabilities:
Capital 1,800,000
Add net profit 600,000
2,400,000
Less: drawings 400,000 2,000,000
Current liabilities
520,000
Creditors LANGUAGE EDITING
Suspense account 13,000 533,000
Total owner’s equity and liabilities 2,533,000
On checking the books, the following errors were found.
(a) Sales day book was undercasted by TZS 20,000.
(b) A sum of TZS 30,000 which was part of bad debts amount was recovered.
(c) An interest expense of TZS 30,000 for the bank overdraft was incorrectly
omitted.
(d) Purchases ledger was overcasted by TZS 50,000.
(e) Commission receivable TZS 90,000 was only posted into the cash book.
Required:
(i) Redraft the income statement for the year ending 30 April 2024 after the
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correction of the observed errors.
(ii) Prepare the statement of financial position as at 30 April 2024 after the
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correction of observed errors.
Student’s Book Form Five
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