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5. (a) Kitwana paid Tshs 900,000 for a desktop computer and sold it in the following ​year ​

Tshs. 720,000. Find:
(i) The loss made



(ii) The percentage loss.

1 answer

To find the loss and the percentage loss for Kitwana, we can use the following formulas:

(i) The loss made

The loss made can be calculated using the formula:

\[ \text{Loss} = \text{Cost Price} - \text{Selling Price} \]

In this case:

  • Cost Price = Tshs 900,000
  • Selling Price = Tshs 720,000

Now, substituting the values:

\[ \text{Loss} = 900,000 - 720,000 = 180,000 \]

So, the loss made is Tshs 180,000.

(ii) The percentage loss

The percentage loss can be calculated using the formula:

\[ \text{Percentage Loss} = \left( \frac{\text{Loss}}{\text{Cost Price}} \right) \times 100 \]

Now substituting the values:

\[ \text{Percentage Loss} = \left( \frac{180,000}{900,000} \right) \times 100 \]

Calculating it step-by-step:

  1. Calculate the fraction:

\[ \frac{180,000}{900,000} = 0.2 \]

  1. Multiply by 100:

\[ 0.2 \times 100 = 20 \]

Thus, the percentage loss is 20%.

Summary:

  • (i) Loss made: Tshs 180,000
  • (ii) Percentage loss: 20%