THE INSTITUTE OF FINANCE MANAGEMENT
FACULTY OF ACCOUNTING, BANKING AND FINANCE
DEPARTMENT OF ACCOUNTING AND FINANCE
AFU 07202/BFU 07211/TMU 07208 FINANCIAL ACCOUNTING
INDIVIDUAL ASSIGNMENT FOR STUDENTS PURSUING
BACHELOR OF ECONOMICS AND FINANCE, BACHELOR SCIENCE
IN TAXATION, ACCOUNTANCY, BACHELOR OF BANKING AND
FINANCE,AND BACHELOR ACCOUNTING WITH INFORMATION
TECHNOLOGY STREAM
YEAR 1 2022/2023
1. This assignment contains only ONE (1) question.
2. Your assignment should be typed. Handwritten or pictured submission assignments
will NOT be accepted.
3. Students are required to upload their assignment on e-learning platform using their own
accounts. The files should be in portable document file (PDF) (*.pdf) any other files
will not be accepted and will not be marked
4. This is individual assignment. You should not copy another student's assignment as
your own. Copied assignment will be severely punished according to the Institute’s
examination regulations
5. The purpose of this assignment is to develop students' analytical and critical skills in
researching the basic and advanced theories and concepts on accounting in
treating/correcting errors
6. This assignment accounts for 10 Marks of your total coursework!
The assignment should be submitted not later than 11th April,2023 at 2359hrs. The deadline is
set in e-learning of which after deadline no one will be able to upload his/her work
QUESTION
The trail balance of Jumanne Sandali, a garage owner, failed to agree on 31st March, 2021. The
difference was entered in a Suspense Account and the final accounts were prepared which
showed a net Profit of TZS 29,000,000. The financial year of Jumanne ends on 31st March each
year
On checking the books, the following errors and omissions were discovered:
(i)
A motor car purchased on credit from Mohamed Kizito, for TZS 12,000,000 had
been entered on the incorrect side of the Kizito’s account and credited as TZS
21,000,000 in the equipment account
(ii)
Car parts, previously sold on credit for TZS 8,500,000 had been returned to
Jumanne. These returns had been incorrectly entered as TZS 500,000 on the credit
of the equipment and TZS 5,800,000 on the debit of the purchases account
(iii)
A cheque of TZS 3,000,000, paid by Jumanne out of private bank account for 15
months’ rent of garage up to 30th June 2021, had not been entered in the books
(iv)
Jumanne had returned a motor car, previously purchased on credit from a supplier
for TZS 10,500,000, and had entered this transaction in the relevant ledger accounts
incorrectly as TZS 15,100,000. However, a credit not subsequently arrived from the
supplier showing a restocking charge of TZS 400,000 to cover the cost of return.
The only entry made in respect of this credit note was a credit entry of TZS
10,100,000 in the creditor’s account
(v)
TZS 1,400,000 received from the sale of an old display cabined (book value TZS
1,200,000) which was used by Jumanne to store private materials had not been
entered into books
Required
(a) Journalise the necessary entries to correct the errors (60 Marks)
(b) Prepare the Suspense Account (20 Marks)
(c) Prepare the statement of showing Correct Net profit (20 Marks)