Page 84 - Accountancy_F5

Details TZS
Inventory on 31 March 2023 (last year) 1,550,000
st
Account receivables on 31 March 2023 1,150,000
st
Account payables on 31 March 2023 1,350,000
st
Receipt from debtors (1 April – 10 June 2024) 1,425,000
st
th
FOR ONLINE READING ONLY
Discount allowed to debtors 25,000
Payment to creditors 1,280,000
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Discount received from creditors 45,000
Inventory donated to a charity (cost value) 85,000
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Inventory salvaged from fire 150,000
Goss profit margin 25% on cost

Required:

(a) Compute the cost value of inventory on 10 June 2024 assuming that on that
th
day, account receivables amounted to TZS 1,625,000 and account payables
TZS 1,225,000; and
(b) The amount to be claimed from the insurance company by Sila Corporation.

8. Fire occurred at the store of Chausiku on 28 November 2023 and most of the
th
inventory was destroyed. The value of inventory salvaged was TZS 1,804,000.
The accounting books disclosed that, on 1 April 2023 the opening inventory
st
was valued at TZS 14,707,000; the purchases to the date of fire amounted to
TZS 40,700,000; and the sales amounted to TZS 62,040,000. Goods costing
TZS 110,000 were taken for personal use by Chausiku; and goods sold for TZS
550,000 were returned in by the customer due to wrong size. On investigation, it
was found that during the past three years the average gross profit on cost used to
be 25 per cent.
Required: Prepare a statement showing the amount Chausiku should claim
from the insurance company in respect of inventory destroyed by fire.
9. The godowns of Pambe Ltd. caught fire on 20 March 2024. In order to make a
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claim as per fire policy in respect of inventory, your advice was sought and the
following information was given to assist you:

Student’s Book Form Five
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