CHIWANGA ENTERPRISES

INCOME STATEMENT FOR THE YEAR ENDED 31/DECEMBER 2017

TZS TZS
Sales 40,250,000
Less: Returns Inwards (930,000)
Net Sales 39,320,000
Less: Cost of Sales
Opening Stock of Finished Goods 190,000
Add: Purchases 7,970,000
8,160,000
Add: Carriage Inwards 300,000
8,460,000
Less: Returns Outwards (485,000)
Cost of Goods Available for sale 7,975,000
Less: Closing Stock of Finished Goods (950,000) (7,025,000)
Gross Profit 32,295,000
Less: Expenses
Electricity Expenses (325,000+55,000) 380,000
Administrative Expenses (980,000-114,000) 866,000
Salaries and Wages 3,650,000
Vehicle Running Expenses (320,000+75,000) 395,000
Provision for Bad Debts 500,000
Distribution Expenses 4,785,000
Depreciation:
Motor Vehicle (2,270,000 + (20/100×3,800,000) 3,030,000
Buildings (5,500,000+ (4/100×12,000,000) 5,980,000
Office Equipment (2,250,000 + (15/100×4,550,000) 2,932,500
Furniture and Fittings (10/100×5,000,000) 500,000
Provision of Income Tax 345,000
Discount Allowed 285,000 (23,648,500)
Net Profit 8,646,500
 CHIWANGA ENTERPRISES
BALANCE SHEET AS AT 31, DECEMBER, 2017
TZS TZS TZS
ASSET
Non-Current Assets
Motor Vehicle 3,800,000
Less: Depreciation (3,030,000) 770,000
Land & Buildings 14,000,000
Less: Depreciation (5,980,000) 8,020,000
Office Equipment 4,550,000
Less Depreciation (2,932,500) 1,617,500
Furniture & Fittings 5,000,000
Less Depreciation (500,000) 4,500,000
Investment 8,500,000
Total Asset 23,407,500

Current Asset
Debtors 4,850,000
Less: Bad Debts & Discount Allowed (500,000+285,000) (785,000)
4,065,000
Closing Stock 950,000
Bank and Cash Balance 4,380,000
Rent Prepaid 114,000
9,509,000
Less: Current Liabilities
Creditors and Investment Income (2,800,000+550,000) 3,350,000 6,159,000
Investment Income 29,566,500
Capital 13,455,000
Add: Net Profit 8,646,500
22,101,500
Less: Drawings 1,825,000
20,276,500