Page 149 - Book-keeping for Secondary Schools Student’s Book Form One

Basic financial statements

Exercise 7.1

1. From the following particulars extracted from the books of a trader, prepare an
income statement for the year ending 30 September 2020.
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TZS
FOR ONLINE READING ONLY
Sales 31,000,000
Sales returns 1,275,000

Purchases 24,640,000
Purchases returns 1,750,000

Carriage inwards 215,000
Warehouse wages 2,000,000
Inventory on 1 October 2019 6,500,000
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Inventory on 30 September 2020 4,720,000
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2. You are required to prepare an income statement for the year ending 31/3/2020
from the following details of Magoti.

Details TZS
Inventory at 1/4/2019 18,685,000
Inventory at 31/3/2020 21,983,000

Sales 279,000,000
Purchases 111,600,000
Carriage outwards 4,250,000
Sales returns 4,840,000
Purchases returns 3,600,000
Wages and salaries 5,400,000
Rent expenses 9,000,000
Rent income 10,800,000
Discount allowed 1,260,000
Discount received 1,440,000
General expenses 16,200,000

Insurance 1,800,000
Telephone expenses 2,980,000
Water expenses 1,825,000

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