Page 148 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

Mbelwa enterprise
Trial balance for the year ending 31/12/2020

Details Debit balances (TZS) Credit balances (TZS)
Capital 100,000,000
Purchases 60,000,000
FOR ONLINE READING ONLY
Sales 72,000,000
Inventory 1/1/2020 10,000,000
Telephone expenses 800,000
General operating expenses 4,000,000
Wages and salaries 1,600,000
Furniture 10,000,000
Accounts receivable 2,000,000
Insurance 8,000,000

Cash 75,600,000
Total 172,000,000 172,000,000

Closing inventory is TZS 15,000,000

Solution

Mbelwa enterprise
An Income statement for the year ending 31/12/2020

Details TZS TZS
Sales 72,000,000
Less: Cost of goods sold:
Opening inventory 10,000,000
Add: purchases 60, 000,000
Cost of goods available for sale 70, 000,000
Less: Closing inventory (15, 000,000) (55,000,000)
Gross profit 17,000,000
Less: Expenses:
Telephone expenses (800,000)
General operating expenses (4,000,000)
Wages and salaries (1,600,000)
Insurance (8,000,000)

Total expenses (14,400,000)
Profit for the year 2,600,000

140
Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 140 18/10/2024 10:14