Question

Required a) Open the accounts and register all of the accounting operations, considering set of costs b) Calculate profit or loss c) Close the accounts and prepare the closing balance sheet as at 28.02 200x. Balance sheet of the company "Gama as at 01.02.200x: ASSETS EQUITY AND LIABILITY Property, plant &equipment100 000 Share capital 100 000 Long-term financial assets 7 500 Trade payables 41 000 Materials 6 500 Trade receivable 7 000 Cash** 20 000 TOTAL ASSETS TOTAL EQUITY AND LIABILITIES 141 000 141000 Relating accumulated depreciation 150 000. *The whole amount on bank account. In February the following accounting operations occurred: 1. Materials worth 2 000 were taken from the storehouse and used: a) for production purposes: 1 800 b) as a casual office use: 200 2. Materials worth 2 000 were received as a free-of-charge transfer. 3. The company calculated depreciation of 900, including a) depreciation of a production machinery 800 b) depreciation of administration equipment 100 4. The company sold production materials for 1 500 (in cash) and issued an invoice. Purchase value of these materials was 1 000. The materials were taken from the warehouse 5. 50 pieces of finished products worth 2 000 in total were taken to the warehouse (remaining main activity cost equals work in progress) 6. The entity received an interest from a bond 250 on the bank account. 7. The company sold half of finished goods with deferred payment (selling price on an invoice was 60 per piece) 8. Sold goods were taken from the storehouse and delivered to the customer 9. 1 000 of the liabilities were paid by bank money transfer 10. 150 of the costs of transport were paid by cash. Required a) Open the accounts and register all of the accounting operations, considering functional set of costs b) Calculate profit or loss c) Close the accounts and prepare the closing balance sheet as at 28.02.200X Balance sheet of the company "Gama" as at 01.02.200X: ASSETS EQUITY AND LIABILITY Property, plant&equipment 100 000 Share capital Long-term financial assets 500 Trade payables 100 000 41 000 Materials 6 500 Trade receivable 7000 20 000 Cash 141 000 TOTAL ASSETS 141 000 TOTAL EQUITY AND LIABILITIES Relating accumulated depreciation1 *The whole amount on bank account. In February the following accounting operations occurred: 1. Materials worth 2 000 were taken from the storehouse and used a) for production purposes: 1 800 b) as a casual office use: 200 2. Materials worth 2 000 were received as a free-of-charge transfer. 3. The company calculated depreciation of 900, including a) depreciation of a production machinery 800 b) depreciation of administration equipment 100 4. The company sold production materials for 1 500 (in cash) and issued an invoice. Purchase value of these materials was 1 000. The materials were taken from the warehouse. 5. 50 pieces of finished products worth 2 000 in total were taken to the warehouse (remaining main activity cost equals work in progress). 6. The entity received an interest from a bond 250 on the bank account. 7. The company sold half of finished goods with deferred payment (selling price on an invoice was 60 per piece). 8. Sold goods were taken from the storehouse and delivered to the customer 9. 1 000 of the liabilities were paid by bank money transfer 10. 150 of the costs of transport were paid by cash.

Answer 1

Below is the desired answer:

1)
Cost of Sale	Dr	1800
Admin Expense	Dr	200
Inventory	Cr	2000
2)
Sample/Distribution Expense	Dr	2000
Inventory	Cr	2000
3)
Depreciation on Machinery	Dr	800
Depreciation on Equipement	Dr	100
Accumulated Depreciation	Cr	900
4)
Cost of Goods Manufatured	Dr	1000
Inventory	Cr	1000
Customer	Dr	1500
Sale	Dr	1500
Sale	Dr	1500
Cost of Goods Manufatured	Cr	1000
Profit and Loss	Cr	500
(Impact)
5)
Inventory	Dr	3000
Cost of Sale	Cr	1000
Cost of Goods Manufatured	Cr	2000
6)
Bank	Dr	250
Interest	Cr	250
7)
Customer	Dr	2250
Inventory	Cr	2250
8)
Inventory	Dr	2250
Sale	Cr	2250
9)
Trade Payables	Dr	1000
Bank	Cr	1000
10)
Transport Cost	Dr	150
Bank	Cr	150
1) Statement of Profit and Loss & Other Comprehensive Income
Particulars	Amount
Revenue	4,000
Cost of Goods Manufactured	-1,000
Cost of sales	800
Distribution costs	2,150
Administrative expenses	200
Finance costs
Depreciation and Amortization	900
Profit before tax	950
Dividend
Income tax expense
Profit for the year	950
Other comprehensive income
Revaluation of Plant, Property and Equipement
Net Income to be carried forward	950
ASSETS	Amount
Non-current assets
Property, plant and equipment	1,00,000
Accumulated Depreciation	900
Net PPE	99,100
Long Term Investment	7,500
Intangible assets
Total non-current assets	1,06,600
Current assets
Inventories	4,500
Prepayments
Trade and other receivables	10,750
Cash and cash equivalents (excluding bank overdrafts)	19,100
Total current assets	34,350
TOTAL ASSETS	1,40,950
EQUITY AND LIABILITIES
Equity
Share capital	1,00,000
Share premium
Income/Loss carried forward from other comprehensive Income Statement	950
Other reserves
Retained earnings
Total equity	1,00,950
Liabilities
Non-current liabilities
Borrowings
Deferred income tax liabilities
Provisions for other liabilities and charges
Total non-current liabilities	-
Current liabilities
Trade and other payables	40,000
Current income tax liabilities
Borrowings
Provisions for other liabilites and charges	-
Total current liabilities	40,000
Total liabilities	40,000
TOTAL EQUITY AND LIABILITIES	1,40,950