Question

A. Record the journal entries for the December transactions.** Must show formulas in cells.

Answer 1

/ Date: / Page No. Journal Entries for the month of Date Particulars Dr. lcr. I Decl Accounts Receivable Dr. To sales Revenue Cr. (Being Revenue recognised on het method obler 240 discount) Dec, 2020 Amount ($) 99,000 98000 Dec 2, 700,000 Land Dr. To Bank All - To Note Pasable (Being land capitalised at full value) 200.000 500000 Dec. 3, Treating face value of shase $1. Hence, bought back done at a premium of $16. 17,000 Equity Share Capital Dr. 2000 Security Premium / General Reserve Dr. 16,000 To Shareholders Ale- (Being buy back of 1000 shares at a premium of $16 & Security Premium Gen. Redene utilised) Shareholdess Ale or 14,000 To Bank ou 2 (Beire Amount paid to ahmed ai shareholders). CamScanner 17,000

Date: / Page No. bate lusticulars Dr./cr. Amount ($) __ 1000 Socunta loremium) Gen.Resome Dr. . 1,000 to Capital Redemption Reserve (Being nominal value of bought back shares transferred to Capital Redemption Rerenve_Account) 49000 Equipment (PPE) Ale Dr. 40000 Yo cash. Ale (Being Equipment Cepitalised at full year) value) Accounts lazable Dr 31,500 To Banko Ale 31500 (Being payment made to . suppliess) Dec 5, Dec 6, No Journal entry required on grant date. As grant of shares is on the condition of three years service, hence even one third of total four value of shares (.e. 40,000) will be expensed out & corresponding credit in Equity. year ra scanned with cm Scanner

1 Date: Page No. Dec. 8. 43.120 43,120 - - Inventory Ale Dr - To Accounts lapable (Being Inventory Puschored & Recorded on net of discount) becq 99,000 98.000 Decis, 124,000 Bank Ale Dr. Yo Acounts Receivable (Being Payment Received from All after 20% discount) Bank Ale or To sales Revenile (Beiy sale Recognised) Cost of Goods sold the Dr - ze Inventory He (Beif cost of goods sold transferred from Sawentory) 124000 74900 74.900 bec16, 242.000 11,000 231000 - Bant Ale Dr To Eguik Share Capital - To security Premium the (Beif Equity shares issued at Premium) face relve $ 1. Decl7, Dr 43120 43120 Accounts kayable to banke (Being Amount haid to crediters) va

Date: 1 Page No. Dec 26, Bad Debts Ale Dr. 70 Accounts Receivable (Being Bad debts written aft) 4.500 Alternate Accounting of Buy back shares on Dec 3) of on beuz entry is done on Treasury strele cast method basis then entry = 17,000 Treesurs Stocle Dr . To Bank are (Being shares bought back) 12,000 TES
Journal entries of all cases are attached in 5 pages.