The insurance, wages and rent receivable accounts in the ledger of Mikado Wiseman show the following balances on 1st January 2024: Insurance paid in advance TZS 562,000, accrued wages TZS 306,000 and rent received in advance TZS 36,000. During the year to 31st December 2024, Mikado Wiseman paid TZS 1,019,000 for insurance, TZS 15,000,000 for wages in cash and received TZS 2,600,000 for rent by cheque from the tenants. At 31st December 2024, insurance prepaid amounted to TZS 345,000, rent receivable of TZS 105,000 was in arrears, and accrued wages amounted to TZS 419,000. Use the information provided to prepare the insurance, wages and rent receivable Accounts to determine the amount of expenses and revenue that will appear in Mikado Wiseman’s income statement for the year ending 31st December 2024.

1. Prepare the Statement of Comprehensive Income for the year ended 31 December 2024, showing necessary adjustments. (6 mk)
2. Prepare the Insurance Account for the year ended 31st December 2024. (3 mk)
3. Calculate the amount of provision for bad debts to be created at the end of the year. (2 mk)
4. Prepare the Wages Account for the year ended 31st December 2024. (3 mk)
5. Prepare the Rent Receivable Account for the year ended 31st December 2024. (4 mk)
6. Prepare the Rent Receivable Account. (4 mk)
7. Calculate the adjusted amount of salaries and wages expense. (2 mk)

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Diana Siridion is a sole trader at Sinza in Dar es Salaam. She opened a single shop and started her business of selling children clothes and shoes on 1st April 2023 with a capital of TZS 50,000,000 in cash. During the month of April 2023, Diana had the following transactions: April 1, opened a bank account with CRDB Bank, paying in TZS 45,000,000. April 2, purchased goods worth TZS 1,000,000, paying in cash. April 3, purchased a motor vehicle, paying by cheque TZS 20,000,000. April 5, purchased goods for TZS 5,000,000, paying by cheque. April 7, sold goods for cash TZS 2,000,000. April 10, paid expenses TZS 500,000 in cash. April 15, sold goods, receiving a cheque for TZS 3,500,000. April 16, paid cash into bank TZS 2,000,000. April 17, purchased goods worth TZS 1,500,000, paying in cash. April 20, paid wages TZS 1,000,000 in cash. April 22, withdrew cash from the bank for office use TZS 1,500,000. April 30, paid general expenses TZS 800,000 in cash. Record the transactions in Diana’s Cash and Bank Accounts and balance off the accounts on 30th April, 2023.

1. Going Concern (2 mk)
2. Prepare a Cash Book and a Bank Book for Diana Siridion for the month of April 2023. (5 mk)
3. Prudence (Conservatism) (2 mk)
4. Journalize the transactions for the month of April 2023. (5 mk)
5. Record the transactions in Diana's Bank Account. (5 mk)
6. Matching Concept (2 mk)
7. Materiality (2 mk)

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The following balances were extracted from the books of XYZ Company Limited as at 30th September, 2023: Discounts received 511,200 Inventory on 1st October 2023 7,600,800 Cash at bank 3,169,200 Cash in hand 170,400 Lighting and power expenses 566,400 Rates 297,600 Office buildings 7,800,000 Fixture and fittings 1,728,000 Motor vehicles 19,200,000 Office stationeries 187,200 Sundry expenses 76,800 Insurance 720,000 Provision for doubtful debts 798,000 Motor expenses 463,200 Bad debts 86,400 Postage and internet expenses 163,200 Additional information: (a) Inventory on 30th September, 2023 was valued at TZS 5,280,000. (b) Depreciation is to be provided on office buildings at 5 per cent, fixtures and fittings at 10 per cent and motor vehicles at 20 per cent. (c) Rates prepaid amounted on 30th September, 2023 to TZS 76,800. (d) Unexpired insurance on 30th September, 2023 amounted to TZS 12,000. (e) Provision for doubtful debts at 30th September, 2023 to be maintained at 10 per cent of trade debtors. Using the information provided, prepare the company’s Income Statement for the year ending 30th September, 2023 and the Statement of Financial Position as at 30th September, 2023.

1. Prepare the company’s Income Statement for the year ending 30th September, 2023. (0 mk)
2. Prepare the Statement of Financial Position as at 30th September, 2023. (0 mk)
3. Prepare the Balance Sheet as at 30th September 2023. (5 mk)

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The following errors were discovered in the books of account of A.B.C. Traders for the year ended 31st December, 2004. (a) A balance of TZS 34,800 on a debtor’s account had been omitted from the schedule of debtors, the total of which was entered as accounts receivable in the Trial Balance. (b) Machinery purchased for TZS 480,000 had been written off to repairs. (c) The receipts side of the cash book had been under cast by TZS 288,000. (d) The total of one page of the sales daybook had been carried forward as TZS 3,261,600 instead of TZS 3,405,600. (f) A credit note for TZS 71,600 received from a supplier had been posted to the wrong side of his account. (g) An electricity bill with a sum of TZS 60,800, not yet accrued for, has been discovered in a filling tray. (h) Mr. Dunda, whose debt has been regarded as doubtful, paid TZS 292,000 to clear his account. His personal account has been credited but the cheque has not yet passed through the cash book. (i) Wages of TZS 118,520 had not been posted from the cash book to the nominal account. (i) TZS 85,000 received from James, had been debited to his account. (j) Commission received TZS 45,000 had been debited to commission received account. Prepare the General Journal to correct the errors (narrations are not required), Suspense Account and the Statement of Corrected Net profit.

1. Prepare the General Journal to correct the errors (narrations are not required). (18 mk)
2. Prepare the Suspense Account. (7 mk)
3. Prepare the Statement of Corrected Net Profit. (5 mk)

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ABC Ltd operates a fleet of small buses for shuttle transport in the Region of Kilimanjaro. The buses are depreciated on a straight line basis at a rate of 20 per cent per annum. The following table shows the company’s purchases and disposals of buses for the three years ending 31st December, 2020, 2021, and 2022: | Buses | Date of Purchases | Cost (TZS) | Date of Disposal | Disposal proceeds (TZS) | |---|---|---|---|---| | Bus 1 | 1st January 2020 | 10,000,000 | - | - | | Bus 2 | 1st January 2021 | 5,000,000 | 1st January 2022 | 1,800,000 | | Bus 3 | 1st January 2022 | 14,000,000 | - | - | Use the information provided to prepare the Buses, Provision for Depreciation on Buses Accounts for the three years ending 31st December 2020, 2021, 2022 and the Buses Disposal Account for the year ending 31st December 2022.

1. Prepare the Buses Account for the three years ending 31st December 2020, 2021, 2022. (7 mk)
2. Prepare the Provision for Depreciation on Buses Account for the three years ending 31st December 2020, 2021, 2022. (7 mk)
3. Prepare the Buses Disposal Account for the year ending 31st December 2022. (3 mk)
4. Prepare the Buses Disposal Account for the year ending 31st December 2022. (6 mk)

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The books of Jambo Ltd showed the following transactions for the year ending 31st December, 2023: January 1. Purchased 2000, 6 per cent debenture of TZS 100 each in Jabba Ltd at 98 ex-interest. Interest is payable semi annually on 30th June and 31st December. Purchased 500 ordinary shares of TZS 10 in Jamal Steel Ltd for TZS 25 per share. February 1 Purchased 300 ordinary shares of TZS 10 in Jamal Steel Ltd for TZS 24 per share. On 31st March 2023 Jamal Steel Ltd paid a six months’ interim dividend of 10 per cent and made a bonus issue of 1 for 4. April 30 Sold 500 of the debentures at TZS 101 cum-interest. July 1. Sold 100 ordinary shares at TZS 25 each. September 30. Jamal Steel Ltd paid a 5 per cent final dividend and gave the rights to shareholders to apply for 1 share for every 3 held at TZS 20 per share payable in full on application. November 15. Sold half of the rights for TZS 6 each. November 20. Exercised the remaining rights.

1. Prepare the 6% Jabba Ltd Debenture Investment Account. (8 mk)
2. Record the purchase of shares in the Investment Account. (10 mk)
3. Prepare the Jamal Steel Ltd Ordinary Shares Account. (7 mk)
4. Prepare the Rights Issue Account. (5 mk)

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The following information was extracted from the books of BBM Ltd as at 31st December, 2020: Details TZS TZS Sales 640,000 Gross profit 160,000 Average inventory at cost 40,000 Expenses 32,000 Non-current assets 432,000 Current assets: Inventory Debtors 40,000 Bank 32,000 8,000 80,000 Current liabilities 512,000 (40,000) Page 6 of 7 capital 472,000 472,000 (a) Calculate the following accounting ratios for BBM Ltd: (i) Gross profit as a percentage of sales (ii) Rate of stock turnover (iii) Net profit as a percentage of sales (iv) Rate of return on capital employed (v) Current ratio (vi) Quick ratio (b) ZARA Ltd is another firm in the same line of business. The following information has been extracted from the books of the company for the year ending 31st December, 2020: (i) Gross profit as a percentage of sales = 25 per cent (ii) Rate of inventory turnover = 9 times (iii) Net profit as a percentage of sales = 10 per cent (iv) Rate of return on capital employed = 12½ per cent (v) Current ratio = 1:1 (vi) Quick ratio = 0.5: 1 Compare the information provided about ZARA Ltd with the calculated ratios for BBM Ltd. Using the rate of inventory turnover, rate of return on capital employed, current ratio and quick ratio as performance indicators. Which company was more successful in the year 2020? Give a reason. Page 7 of 7

1. Calculate the following accounting ratios for BBM Ltd: (i) Gross profit as a percentage of sales (ii) Rate of stock turnover (iii) Net profit as a percentage of sales (iv) Rate of return on capital employed (v) Current ratio (vi) Quick ratio (15 mk)
2. Compare the information provided about ZARA Ltd with the calculated ratios for BBM Ltd. Using the rate of inventory turnover, rate of return on capital employed, current ratio and quick ratio as performance indicators. Which company was more successful in the year 2020? Give a reason. (10 mk)

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