Page 49 - Book-keeping for Secondary Schools Student’s Book Form One

Application of the double entry system

Revision exercise 3

1. Complete the gaps in the following table.

Assets Liabilities Capital
FOR ONLINE READING ONLY
TZS TZS TZS
(a) 1,650,000 507,000 ?

(b) ? 516,000 1,032,000
(c) 1,083,000 ? 855,000

(d) 3,585,000 462,000 ?
(e) 2,640,000 ? 2,480,000
(f) ? 1,960,000 4,400,000

2. Complete the columns to show the effects of the following transactions by inserting
a (+) sign for the increase and a (-) sign for the decrease. Transaction (a) is given
as an example.

Transaction Effect on

Assets Liabilities Capital
(a) Started business depositing TZS 3,500,000 cash Bank Capital

in a bank account. (+) (+)
(b) Purchased office furniture by cheque from

Kipara worth TZS 250,000.
(c) The owner injected TZS 600,000 by cheque in
the business.
(d) Sold goods to Mahinda on credit worth TZS

120,000.
(e) Paid wages in cash amounting to TZS 50,000.
(f) Received TZS 50,000 in cash as rent.
(g) Purchased a business building from D. Kamara

for TZS 750,000, paying TZS 500,000 by
cheque and promising to pay the balance as early
as possible in the following month.

41

Book Keeping Form 1 New 2024 FINAL.indd 41 18/10/2024 10:14