*TRANSACTIONS*

1. Acquisition of raw materials 200 units,110 unit price and transportation expenses 800.
Acquisition cost of row materials =200*110+800 =22800 m.u.
Raw materials .22800
Suppliers..

22800

The Debiting account: Raw materials (+A) vs. The Crediting account: Suppliers (+P)

Raw materials
7 000
(1) 22 800
29800
Suppliers
8 000
22 800 (1)

2. The payment of the supplier is done using a note payable with a maturity date of 3 months.
Suppliers 22800
Notes Payable

22800

The Debiting account :Suppliers(-P) vs. Crediting account: Notes Payable (+P)

(2) 22

Suppliers
800
8 000
22 800 (1)

Notes payable
1 000
22 800 (2)

3. The company buys consumables 300 units for 12 monetary units per unit price.
Consumables 3600
Suppliers
The Debiting account: Consumables (+A) vs. The Crediting account: Suppliers (+P)

3600

Suppliers
(2) 22 800
8 000
22 800 (1)
3 600 (3)

Consumables
1 500
(3) 3 600

4. After 5 days the invoice is paid from a short term bank loan.
Suppliers.. .3600
Short Term Bank Loans ...

3600

The Debiting account: Suppliers (-P) vs. The Crediting account: Short Term Bank Loans (+P)

Suppliers
(2) 22 800
8 000
(4) 3 600
22 800 (1)
3 600 (3)

Short term bank loan

5 000
3 600 (4)
5. Purchase on commercial credit of merchandise, unit price 210, 400 units; commercial discount 2% and
financial discount 4%.
Commercial discount: 2% *84.000 = 1680
Financial discount: 4% *(84.000 - 1.680) = 3293
Price: 210*400 = 84.000
Merchandise 82320
Suppliers . ..

79027

Revenues from Financial discounts

3293

The Debiting account: Merchandise (+A) vs. Crediting accounts: Suppliers (+P),Revenues from Financial
Discount (+P)

Suppliers
(2) 22 800
8 000
(4) 3 600
22 800 (1)
3 600(3)
79 027 (5)
Merchandise
6 000
(5) 82 320

Revenues from financial discounts

3 293 (5)
3293
6.Record the advance payments from the bank account to the employees for 7000.
Prepaid Expenses with Salaries 7000
Bank Account

7000

The Debiting account: Prepaid Salaries (+A) vs. The Crediting account: Bank Account (-A)

Prepaid salaries
(6) 7 000

Bank account
80 000
(6)

7 000

7. Selling merchandise, 300 units (using FIFO), unit price 240.

Merchandise: Initial :

30 units *200 mu/unit

Purchased : 400 units *210 mu/unit

Using FIFO 300 units out : 30 units *200 mu/unit =6000
270 units * 210 mu/unit =56700
Total out: 62.700
Selling price: 300 units x 240 mu/unit = 72000
Bank Account. 72000
Revenues from Sold Merchandise.

72000

The Debiting account: Bank Account (+A) vs. The Crediting account: Revenues from Sold Merchandise
(+P)

Revenues from sold merchandise

72 000 (7)

Bank account
80 000
(6)
7 000
(7) 72000

72 000

Cost of Goods Sold .62700

Merchandise

62700

The Debiting account: Cost of Goods Sold (+A)vs. The Crediting account: Merchandise (-A)

Cost of goods sold

(7) 62700

Merchandise
6 000 62700 (7)
(5) 82 320

8. Payment of the suppliers of merchandise from the bank account.

Suppliers 87027
Cash at Bank

87027

The Debiting account: Suppliers (-P) vs. The Crediting account: Cash at Bank (-A)

Bank account
80 000
(6)
7 000
(7) 72000
87027 (8)

Suppliers
8 000
22 800 (1)
3 600 (3)
79 027 (5)

(2) 22 800
(4) 3 600
(8) 87027

9. Receiving from a client an advance for finished goods for 5000.

Bank Account.5000
Deferred Revenues.

5000

The Debiting account: Cash on Hand (+A) vs. The Crediting account: Deferred Revenues (+P)

(9)

Cash on hand
2 000
5000

Deffered Revenues
(9)
5000

10. Recording the gross salaries payable for 20000.

Prepaid Expenses with salaries 20000
Salaries Payable

20000

The Debiting account: Expenses with Salaries (+A) vs. The Crediting account: Salaries Payable (+P)

Expenses with salaries

(10) 20000

Salaries Payable
(10) 20000
11. Selling finished goods, 60 units and unit price 140 mu.
Selling price = 60 units x 140 mu/unit = 8400 mu
Selling value = 60 units x 125 mu/unit = 7500 mu
The Debiting accounts: Customers (+A), Deferred Revenues (-P) vs. the Crediting account: Revenues from
Sale of Finished Goods (-A)
D

Customers 3400
Deferred Revenues 5000
Revenues from Sale of Finished Goods.

(11)

(11)

8400

Costumers
9000
3400
Deffered Revenues
5000 (9)
5000

Cost of Goods Sold ..7500

Finished Goods...

7500

The Debiting account: Cost of Goods Sold (+A) vs. The Crediting account: Finished Goods (-A)

Cost of goods sold

(7)
62700
(11)
7500

Finished Goods
10000
(11)
7500

12. The company records its contributions regarding the salaries:

CCSSF 22%, CCHIF 7% and CCUF 3%.
CCSSF = 22% x 20.000 mu = 4.400 mu
CCHIF = 7% x 20.000 mu = 1.400 mu
CCUF = 3% x 20.000 mu = 600 mu
The Debiting account: Company Contribution Expenses (+A) vs. The Crediting accounts: CCSSF Payable
(+P), CCHIF Payable (+P), CCUF Payable (+P)
Company Contribution Expenses
CCSSF Payable ...
CCHIF Payable
CCUF Payable .

Companys contributions payable

(12) 6 400

Expenses with CCSSF

(12) 4 400

Expenses with CCUF

(12) 600

Expenses with CCHIF

(12) 1 400

13. The company records the employees contributions: ECSSF 9.5%, ECHIF 6.5%, ECUF 1% and salary
tax 23% from the gross salary deducting all other contributions.
ECSSF = 9.5% x 20.000 mu = 1900 mu
ECHIF = 6.5% x 20.000 mu = 1300 mu
ECUF =

1% x 20.000 mu = 200 mu

Salary Tax Payable =

23% x 20.000 mu = 4600 mu

The Debiting account: Employees Contribution Expenses (+A) vs. the Crediting accounts: ECSSF Payable
(+P), ECHIF Payable (+P), ECUF Payable (+P),Salary Tax Payable (+P)
Employees Contribution Expenses 8000
ECSSF Payable ..

1900

ECHIF Payable

1.300

ECUF Payable

200

Salary Tax Payable...........

4.600

Employees contributions payable

ECSSF
8000Payable
(13) 1900

(13)

ECUF Payable

ECHIF Payable
(13)

(13)

1900

200

Salary Tax Payable

(13)

4600

14. Obtaining finished goods 200 units, standard cost 125 mu , real cost 120.
The Debiting account: Work in Process (+A) vs. the Crediting accounts: Raw Materials (-A), Consumables
(-A)
25.000 mu
Work in Process . .25000
Raw Materials

20.800

Consumables .

4.200

Consumables
1 500 (14) 4200
(3) 3 600

Raw materials
7 000 (14)
20800
(1) 22 800
29800

(14)

WIP
25000

The Debiting account: Finished Goods (+A) vs. The Crediting account: Work in Process (-A)
Finished Goods25000
Work in Process

25000

Finished Goods
10000
(11)
7500
(14) 25000
(14)

WIP
25000 (14)

25000

15. Selling a building, book value 10000, depreciated 20%, selling price 11000.
The Debiting account: Cash (+A) vs. T he Crediting account: Revenues from Sale of Buildings (+P)
Cash on Hand.. 11000
Revenues from Sale of Buildings

(9)
(15)

Cash on hand
2 000
5000
11000

11000

Revenues from Sale of

Buildings

(15)

11000

The Debiting accounts: Depreciation of Buildings (-P), Expenses with Building Depreciations (+A) vs.
The Crediting account: Buildings (-A)
Depreciation of Buildings.. 2000
Expenses with Building Depreciations... 8000
Buildings.
Depreciation of Buildings

(15)

4000

2000

10000

Expenses with Buildings

Depreciation

(15)

8000

16. Payments of the contributions regarding salaries to the budgets from the bank account.
The Debiting accounts: CCSSF Payable (-P), CCHIF Payable (-P), CCUF
Payable (-P), ECSSF Payable (-P), ECHIF Payable (-P), ECUFPayable (-P), Salary Tax Payable (-P)
Crediting account: Cash at Bank (-A)
CCSSF Payable .4400
CCHIF Payable . 1400
CCUF Payable 600
ECSSF Payable. 1900
ECHIF Payable. 1200
ECUF Payable . 300
Salary Tax Payable 4600
Cash at Bank .

Expenses with CCHIF

Expenses with CCSSF
(16) 1 400
(12) 1 400
(16) 4 400
(12) 4 400

Expenses with CCUF

(16) 600
(12) 600
ECSSF Payable

1900

(16)

(13)

1900

ECUF Payable
(16)

200

(13)

200

ECHIF Payable
(16)

1900

(13)

1900

Salary Tax Payable

(16)

4600

(13)

4600

14.400

Bank account
80 000
(7) 72000

(6)

000
(8)87027
(16) 1440

17. Cashing in all the claims in cash.

The Debiting account: Cash on Hand (+A)vs.Crediting accounts: Customers (-A), Notes Receivable (-A)
Cash on Hand 16900
Customers ..

12.400

Notes Receivable

4.500

Cash on hand
2 000
(9)
5000
(15) 11000
(17) 16900

(11)

Costomers
9000 (17)
3400

12400

Notes Receivables
4500 (17) 4500
18. Transferring all the money into the bank account.
The Debiting account: Cash at Bank (+A)vs.Crediting accounts: Cheques (-A), Cash on Hand (-A)
Bank Account44.900
Cheques

10.000

Cash on Hand ..

34.900

(7)
(18)

Bank account
80 000 (6) 7000
72000
(8)87027
44900 (16) 1440

Cheques
10000 (18)

10000

Cash on hand
2 000 (18)
44900
(9)
5000
(15) 11000
(17) 16900

19.Paying from the bank account the net salaries.

The Debiting account: Salaries Payable (-P)
Vs. The Crediting account: Net Salaries Payable (+P), Prepaid Salaries
(-A),Revenues from Employees Contribution (+P)
Salaries Payable 20000
Net Salaries Payable

5000

Prepaid Salaries

7000

Revenues from Employees Contribution

8000

Salaries Payable
(19) 20000 (10) 20000

(6)

Prepaid salaries
7 000 (19) 7 000

Revenues from Emplooyes

contribution
(19) 8000
Net salaries Payable
(19) 5 000

The Debiting account: Net Salaries Payable (-P) vs. Crediting account: Bank Account (-A)
Net Salaries Payable 5000
Bank Account.

(7)
(18)

Bank account
80 000 (6) 7000
72000
(8)87027
44900
(16) 1440
(19) 5000

5000

Net salaries Payable

5 000 (19) 5 000

(19)

20. The company receives dividends from another corporation 11000.

Debiting account: Cash at Bank (+A)vs.Crediting account: Revenues from Dividends (+P)
Cash at Bank 11000
Revenues from Dividends

11000

Bank Account
80000 (6) 7000
72000
(8)
87027
44900
(17)1440

(7)
(18)

Revenues from Dividends

(20) 11 000

(19) 5000

(20) 11000

21. The interest for the long term bank loan is paid.
Debiting account: Interest for Long Term Loans (-P)vs.Crediting account: Cash at Bank (-A)
Interest for Long Term Loans

800

Bank Account.

(7)
(18)

Bank Account
80000 (6)
7000
72000 (8)
87027
44900
(17) 1440

(20)

11000

(19)

800

Interest for Long Term

Loans
(21)
800
800

5000

(21)

800

22. Providing service for a customer for 6000.

Debiting account: Customers (+A) vs.Crediting account: Revenues from Services Provided (+P)
Customers ..6000
Revenues from Services Provided

(11)
(22)

23. Close

Customers
19000 (17)
3400

12400

Revenues from Services

Provided

(22) 6000

6000

Expenses and Revenues

(5) 3293
62700 (7)
(7) 72000
20000 (10)
(11)8400
7500 (11)
(15)11000
(19)8000
6400 (12)
(20)11000
8000
(13)
(22) 6000
8000
(15)
119693

112600

the expenses and revenues accounts.

6.000

24. Compute the income tax and the net profit and pay the income tax.
Total Revenues : 119.693 mu
Total Expenses : 112.600 mu
Net Profit Before Tax :
Income Tax (15%)

7.093 mu

1.064 mu

Net Profit After Tax :

6.029 mu

The Debiting account: Income Tax Expense (+A) vs. The Crediting account: Income Tax (+P)
Income Tax Expense.1064
Income Tax

Income tax
1200
1064

2264

Bank account
80 000
7000
(7)
72 000
87027
(18) 44 900
14400
(20) 11 000
5000
800
2264

(6)
(8)
(16)
(19)

(21)
( 24)

1064

ABC

CORPORATION

BALANCE SHEET
As of January , 2003
ASSETS
Current Assets
Cash on hand 2000
Cash at bank80000
Cheques10000
Notes Receivables 4500
Row material 7000
Consumables1500
Finished goods10000
Merchandise 6000
Costumers 9000

LIABILITIES
Current Liabilities
Notes Payable1000
Suppliers8000
Sh-term bank loans5000
Interest for long term
loans 800
Income tax1200

Total current assets: 130.000

Total current liabilities:16.000

Property, plant and equipment

Long-term bank loans11000

Total liabilities
Land(improvements)15000
Buildings25000
Less: Acc. Depr 4000
Plant& Machinary18000
Less: Acc. Depr 2000

:27.000

Total fixed assets : 52.000

Shareholders equity
Subcribed & Paid-in K60000
Share premiums 1000
Legal reserves10000
Provisions for doubtfull
Customers 700
Shares 3600
RETAINED EARNINGS 79700
Total shareholders equity: 155.000

TOTAL ASSETS182.000

TOTAL LIABILITIES AND SH.EQ182.000

ABC

CORPORATION

BALANCE SHEET
As of January , 2004
ASSETS
Current Assets
Cash on hand 0
Cash at bank91409
Cheques
0
Notes Receivables
0

LIABILITIES
Current Liabilities
Notes Payable23800
Suppliers
0
Sh-term bank loans8600
Interest for long term

Row material 9000

Consumables 900
Finished goods27500
Merchandise25620
Costumers 6000

loans
Income tax

Total current assets: 160.429

Total current liabilities:32.400

Property, plant and equipment

Long-term bank loans11000

Total liabilities
Land(improvements)15000
Buildings15000
Less: Acc. Depr 2000
Plant& Machinary18000
Less: Acc. Depr 2000

0
0

:43.400

Total fixed assets : 44.000

Shareholders equity
Subcribed & Paid-in K60000
Share premiums 1000
Legal reserves10000
Provisions for doubtfull
Customers 700
Shares 3600
RETAINED EARNINGS85729
Total shareholders equity: 161.029

TOTAL ASSETS204.429

TOTAL LIABILITIES AND SH.EQ204.429

ABC CORPORATION
Income Statement
For the Year 2003

Operating Revenues:
Revenues from Sale of Merchandise............................................72.000
Revenues from Sale of Finished Goods........................................ 8.400
Revenues from Sale of Buildings.............................................. 11.000
Revenues from Employee Contribution..................................... 8.000
Operating Expenses:
Cost of Good Sold......................................................................70.200
Expenses with Salaries................................................................20.000
Company Contribution Expenses................................................. 6.400
Employee Contribution Expenses..................................................8.000
Expenses with Building Depreciation............................................8.000
Net Operating Loss:13.200
Financial Revenues:
Gain from Financial Discount.........................................................3.293
Revenues from Dividends............................................................. 11.000
Revenues from Services Provided...................................................6.000
Net Financial Profit:20.293
Net Profit before Tax................. 7.093
Income Tax Expense (15%)...... 1.064
Net Profit after Tax.....................6.029