Case 1

XYZ organisation received a piece of equipment for TZS600million

from ABC donor on the 1st January 2007. The equipment is expected
to have an economic life of 5 years and will have no residual value.
Depreciation is calculated on a straight-line basis over the life of the
asset. The financial year end of the organisation is December 31st
each year.

Show the accounting entries for year 1, year 2 as per the requirement
of the IPSAS 23 and IPSAS 17
Case 2

XYZ organisation purchased a piece of equipment for TZS600million on the 1st

January 2007. The equipment is expected to have an economic life of 5 years
and will have no residual value. Depreciation is calculated on a straight-line
basis over the life of the asset. Included in the cost of this equipment i.e TZS
600millions, the organisation received a government grant of TZS200million
towards the purchase of this equipment. The financial year end of the company
is December 31st each year.

Show the accounting entries for year 1, year 2 as per the requirement of the
IPSAS 23 and IPSAS 17
On 31st December 2007 XYZ organisation received a notification
letter (attached with all supporting documentation) from government
entity ABC that a piece of equipment amounting TZS600million was
procured and is expected to be delivered/transferred to entity XYZ on
31 January, 2008.

(i)Show the accounting entries for year ended 31 December 2007.

(ii) On 31 January, 2008, the equipment was delivered to entity XYZ,
show the accounting entries in recognition of the asset.
Case 4

On 31st December 2007 XYZ organisation received a notification letter

(attached with all supporting documentation) from government entity ABC that
inventories amounting TZS600million were procured and are expected to be
delivered/transferred to entity XYZ on 31 January, 2008.

Show the accounting entries for year ended 31 December 2007.

On 31 January, 2008, inventories amounting TZS 400million were delivered to

entity XYZ, show the accounting entries in recognition of those inventories.

Inventories amounting to TZS 150millions were consumed during the year

ended 31 December 2008.

What were the entries passed during the year?

Show the year end balances for the transactions mentioned above as at 31
December 2008.