ShshdhdjdjQUESTION ONE

The Trial balance showed a balance of TZS.4000,000 in salaries account and TZS.1400,000 in insurance expenses
account. At the end of the year it was found that TZS.500,000 of salaries is yet to be paid and TZS.200,000 of
insurance was paid in advance.

QUESTION 2

Three of the accounts in the ledger of Malumbano LTD indicated the following balances at 1 January, 20X3.
insurance paid in advance TZS. 560,000
wages outstanding TZS. 300,000
Rent Receivable, received in advance TZS. 350,000.

During 20X3 Malumbano paid for insurance TZS. 1,000,000, wages TZS. 15,000,000 and Received TZS. 2,600,000
rent, from the tenant.
At 31st December, 2022 insurance prepaid was TZS. 345,000, rent receivable in arrears TZS. 100,000, and wages
accrued amounted to TZS. 420,000.

(a) Prepare the insurance, wages, and rent receivable accounts for the year ended 31 st December 2022, showing the
year end transfers and the balances brought down.

(b) Prepare the statement of Profit or Loss and other comprehensive income extract showing clearly the amounts
transferred from each of the above accounts for the year ended 31st December, 2022.

QUESTION 3
 The following trial balance was extracted from the books of A. Haidari at the close of the period on 31st
March 2022. You are required to draw up the statement of comprehensive income for the year ending 31 st
March, 2022 together with balance sheet as at that date.

Dr. Cr.
Purchases and Sales 11,000,000 19,500,000
Cash at bank 1,400,000
Cash in hand 600,000
Drawings 2,500,000
Capital 9,600,000
Furniture 1,500,000
Rent 1,200,000
Wages and salaries 2,000,000
Discounts 600,000 300,000
Debtors and creditors 4,900,000 2,500,000
Stock 1 April 2021 2,900,000
Provision for bad debts 300,000
Delivery van 2,400,000
Van running expenses 400,000
Bad debts written off 800,000
32,200,000 32,200,000

Notes
(a) Stock 31st March 2022 TZS. 3,500,000
(b) Wages and salaries accrued at 31st March 2022 TZS.90,000.
(c) Rent prepaid at 31st March 2022 TZS.140,000
(d) Van running expenses owing at 31st March 2022 TZS.60,000.
(e) Increase the provision for bad debts by TZS.100,000