Page 39 - Book-keeping for Secondary Schools Student’s Book Form One
P. 39
Application of the double entry system
Habibu’s statement of affairs will appear as follows:
Habibu’s statement of affairs as at 3 January 2020
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Details TZS
Assets:
Shaving machines 480,000
FOR ONLINE READING ONLY
Furniture 620,000
Fittings 216,000
Sterilising machine 240,000
Consumables (soap, creams, and towels) 115,000
Cash 510,000
Total Assets 2,181,000
Capital and liabilities:
Liabilities
Payable to Mwakapande 836,000
Payable to Usafi traders 240,000
Total liabilities 1,076,000
Capital 1,105,000
Total capital and liabilities 2,181,000
2. On 5 January 2020, Habibu uses TZS 15,000 of the cash to purchase air freshener
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for the shop. In this case, there is a decrease in asset (cash) and an increase in another
asset (the stock of consumables) by the same amount that is TZS 15,000.
Thus the equation remains as in the previous example, that is,
TZS 2,181,000 = TZS (1,105,000 + 1,076,000). Habibu’s statement of affairs on 5
th
January will appear as follows:
Habibu’s statement of affairs as at 5 January 2020
th
Details TZS
Assets:
Shaving machines 480,000
Furniture 620,000
Fittings 216,000
Sterilising machine 240,000
Consumables (soap, creams, towels, and air freshener) 130,000
Cash 495,000
Total 2,181,000
Capital and liabilities:
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Book Keeping Form 1 New 2024 FINAL.indd 31 18/10/2024 10:14
