Hexham plc

Account Title Unadjusted Balance Adjustment

Debit Credit Debit

1 Bank (overdraft) 24,000
2 Trade receivables 60,000
3 Allowance for receivables 5,000
4 Advance deposits from customers 6,000
5 Inventories at 1/4/20X7 75,000 91,000
6 Land and building cost 600,000
7 Land and building accumulated depreciation at 1/4/20X7 96,000
8 Plant and equipment cost 340,000
9 Plant and equipment accumulated depreciation at 1/4/20X7 63,000
10 Bank loan 200,000
11 Account Payable 54,000
12 Equity Capital Share ( £1 shares) 400,000
13 Share premium 100,000
14 Retained Earnings 61,000
15 Equity dividend paid 15,000
16 Sales 1,150,000
17 Purchases 465,000
18 Distribution costs 220,000
19 Administrative expenses 340,000
20 Irrecoverable debts expenses (Other operating expense) 36,000
21 Loan interest paid 8,000
Total 2,159,000 2,159,000

Statement of profit or loss for the year ended 31/3/x8 Workings Calculations:
Revenue 1,150,000 TB
COS 483,000 449,000 inv + 34,000 depr
Gross profit 667,000
Distribution costs 220,000 TB
Administrative expense 316,000
Other operating expense 53,560
Profit/loss from operating 77,440
Finance costs 12,000
Profit/loss before tax 65,440
Income tax 10,000
Profit for the year 55,440

Statement of financial position at 31/3/X8

Non-current assets
PPE
Land and buildings 496,000 600,000 cost - 104,000 ac
Plant and equipment 243,000
Intangibles assets 0
 Inventories 91,000
Trade receivables 52,440 Net trade receivables = TR
Prepayments 32,000
Cash and cash equivalents 0
Total assets 914,440

Equity
Equity share capital 400,000
Preference share capital 0
Share premium 100,000
Retained earnings 101,440

Non-current liabilities
Borrowings 200,000
Current-liabilities
Borrowings 0
Bank overdraft 24,000
Trade payables 54,000
Accruals 4,000
Deferred income 6,000 advanced deposits from c
Provision 15,000
Tax payable 10,000
Total equity and liabilities 914,440

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of Profit Statement of
Adjustment
or Loss Financial Position
Adjustment entries Note for students:
Credit Debit Credit Debit Credit a)Dr Ending Inv 91,000 NRV applied: selling pric
Dr COS 449,000 Ending Inv = 15,000+76
Cr Purchases 465,000 Analyse Inv and COS acc
Cr Beginning Inv 75,000

75,000 91,000 b) Dr Prepayment 7,000 5 months of prepaymen

Cr Admin ex 7,000

c) Dr Admin Ex 8,000 (600,000 - 200,000)/50 =

Cr Accum.Depre 8,000

Dr COS 34,000 340,000 x 10% = 34,000

Cr Accum.Depre 34,000

d) Dr Other oper. Ex 4,800 Write off TR

Cr T.R 4,800
Dr Allowance for TR 2,240 5,000 - 2,760 = 2,240
Cr Other Oper.ex 2,240

e) Dr Finance costs 4,000 Interest annual = 200,00

Cr Accruals (interest) 4,000

f) Dr Income tax 10,000

Cr Income tax payable 10,000
Calculations:
Errors of payment
449,000 inv + 34,000 depre -

h)Dr other oper.ex 15,000

Cr Provisions 15,000

i) Dr Prepayment 25,000 Prepayment of 1 year re

Cr Admin ex 25,000

600,000 cost - 104,000 accum depre

Net trade receivables = TR - write off - Allowance for bad debts

advanced deposits from customer is Deffered income/unearned revenue

ies in paper, then use calculators to gather numbers for each items.
 Note for students:
NRV applied: selling price here mean: Net selling price = Selling price less cost to sales
Ending Inv = 15,000+76,000=91,000
Analyse Inv and COS account==> COS from Inv = 449,000

5 months of prepayment

(600,000 - 200,000)/50 = 8,000

340,000 x 10% = 34,000

Write off TR

5,000 - 2,760 = 2,240

Interest annual = 200,000 x 8%=16,000, from 1/7/X7 to 31/3/X8: 9 months of £12,000 finance cost, paid £8,000 and accrued £4,000

Errors of payment Right: Dr TP/ Cr Cash 4,500 Not appear in 2019 exam sample
Wrong: Dr TP/Cr Cash 5,400

Prepayment of 1 year rent

nd accrued £4,000
 Shindig Plc
Account Title Unadjusted Balance

Debit Credit
1 Bank account 440,200
2 Trade receivables 420,300
3 Raw materials 294,500
4 Work in progress 1/1/20X4 125,500
5 Inventories of finished games 1/1/20X4 155,600
6 Leasehold Buildings 300,000
7 Accumulated depreciation on buildings 1/1/20X4 60,000
8 Computers used on site 50,000
9 Accumulated depreciation on computers 1/1/20X4 20,000
10 License 60,000
11 Trade paybale 80,200
12 Income tax 12,400
13 5% preference share capital (redeemable) - £1 nominal value 120,000
14 Equity share capital - £1 nominal value 500,000
15 Share premium 100,000
16 Retained earnings 1/1/20X4 102,300
17 Equity dividend paid 30/9/20X4 125,000
18 Allowances for receivables 18,765
19 Suspense account 83,765
18 Revenue 1,705,600
19 Production staff cost (charged to cost of sales) 620,400
20 Consultancy fees paid (charged to other expenses) 44,000
Total 2,719,265 2,719,265

Statement of profit or loss for the year ended 31/12/x4 Workings

Revenue 1,705,600
COS -880,500
Gross profit 825,100
Distribution costs 0
Administrative expense 0
Other operating expense -157,765
Profit/loss from operating 667,335
Finance costs -6,000
Profit/loss before tax 661,335
Income tax 107,600
Profit for the year 553,735

Statement of financial position at 31/12/X4

Non-current assets
PPE Computers 20,000
Leasehold buildings 230,000
 Intangible assets (license) 40,000
Intangibles assets
Inventories 315,500
Trade receivables 356,535
Prepayments 0
Cash and cash equivalents 435,200
Total assets 1,397,235

Equity
Equity share capital 500,000
Preference share capital 0
Share premium 0
Retained earnings 531,035

Non-current liabilities
Borrowings (Redeemable preference shares) 120,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 75,200
Accruals -6,000
Deferred income 35,000
Provision 10,000
Tax payable 120,000
Total equity and liabilities 1,385,235

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of
Adjustment Statement of Profit or Loss
Financial Position
Debit Credit Debit Credit Debit Credit

Calculations:
Rev - Unearned Rev

Be careful: U may think There's no finance cost at all.

But we do have 5% preference share capital (redeemable) is liabilities

Net figures
 Net figures: minus write off and allowances

B/c Redeemable Preference share is long term liabilites

Redeemable preference shares

nt entries in paper, then use calculators to gather numbers for each items.
 This is a very tuff and tough question for u, pay attention to it at

Adjustment entries Note for students:

1)Dr Ending WIP 140,000 1/Ending b/l for Finished goods (FG) = 180,000 - 10x(500 - 50)=17
Dr Ending FG 175,500 2/ Ending b/l for WIP = 140,000 (data in add info no.1)
Dr COS 880,500
Cr Materials 294,500 Materials WIP
Cr Staff costs 620,400 125,500
Cr Begin b/l WIP 125,500 294,500 294,500 294,500
Cr Begin b/l FG 155,600 620,400
140,000
2) Dr Other oper.ex (amortisation) 20,000 All materials used in WIP
Cr Accum.Amortisation 20,000 Note: total ending balan
Staff cost There no ending b
3)Dr Other oper.ex(depreciation) 20,000 Maybe u guys cant writ
Cr Accum.Depre 20,000 620,400 620,400

4) Dr Other oper. Ex (irre. debts) 45,000

Cr T.R 45,000
Dr Other Oper.ex (allowances) 18,765
Cr Suspense Account 18,765

5) Dr Income tax ex 120,000

Cr Income tax payable 120,000

Dr (overprovision)income tax 12,400 53,765

Cr Income tax expense 12,400
6) Dr Share premium 100,000 SC đúng, đã bao gồm bonus issue
Cr Suspense account 100,000
7) Dr TP 5,000
Cr Cash 5,000
8)Dr Suspense account 35,000 Right: Dr Cash/Cr Deferred income
Cr Deferred income 35,000 Wrong: Dr Cash/Cr Suspense account

9) Dr Other oper.ex 10,000 83,765

Cr Provision 10,000

10) Dr Finance cost (6,000)

Cr Accruals (interest payable) (6,000)
u, pay attention to it at your utmost.

0,000 - 10x(500 - 50)=175,500

add info no.1)

WIP FG
155,600
x = 125,500+294,500+620,400-140,000=900,400 900,400 y=155,600+900,400-175,500=880,500

175,500

Note: total ending balance of WIP and FG would be totalled in 1 line Inventories on the face of SOFP, and COS is presented in SPL
There no ending balance of materials and staff costs
Maybe u guys cant write down adjustment entries No.1 (like the way I present in file), but u have to know how to draw T-accounts for cal

erred income
spense account
 COS

880,500

resented in SPL

draw T-accounts for calculating COS and pick out ending balance Inv in SOFP from ending balance of WIP and FG
 Ford PLc

Account Title Unadjusted Balance

Debit Credit
1 Cash and cash equivalents 43,500
2 Trade receivables 37,500
3 Inventories at 1/4/20X5 113,400
4 Freehold land and buildings
Cost (land £1,750,000) 2,550,000
Accumulated depreciation at 1/4/20X5 480,000
5 Plant and machinery
Cost 620,000
Accumulated depreciation at 1/4/20X5 337,000
6 Borrowings 200,000
7 Trade paybale 25,400
8 Equity share capital - 50p nominal value 400,000
9 Share premium 100,000
10 Preference share capital - 5% irredeemable £1 shares 200,000
11 Retained earnings at 1/4/20X5 212,500
12 Dividend paid 20,000
13 Revenue 6,700,000
14 Manufacturing costs 4,450,000
15 Administrative salaries 410,500
16 Distribution costs 375,000
17 Finance cost 35,000
Total 8,654,900 8,654,900

Statement of profit or loss for the year ended 31/3/x6 Workings

Revenue 6,450,000
COS 4,515,400
Gross profit 1,934,600
Distribution costs 375,000
Administrative expense 540,500
Other operating expense 0
Profit/loss from operating 1,019,100
Finance costs 35,000
Profit/loss before tax 984,100
Income tax 350,000
Profit for the year 634,100

Statement of financial position at 31/3/X6

Non-current assets
PPE
Land and buildings 2,050,000
Plant and equipment 221,000
Intangibles assets 0
 Inventories 110,000
Trade receivables 27,500
Prepayments 20,000
Cash and cash equivalents 43,500
Total assets 2,472,000

Equity
Equity share capital 500,000 SGK của các em cũng có vấn đề chỗ
Preference share capital 200,000
Share premium 0
Retained earnings 816,600
Phần dưới đây là giải theo quan điểm của cô:
Non-current liabilities
Borrowings 180,000
Current-liabilities
Borrowings 20,000
Bank overdraft 0
Trade payables 25,400
Accruals 20,000
Dividend payable 10,000
Deferred income 250,000
Provision 100,000
Tax payable 350,000
Total equity and liabilities 2,472,000

Các em đừng lo lắng gì, ở đây chỉ là quan điểm phân loại thôi, không có vấn đề gì hết nhé !
 Statement of
Adjustment Statement of Profit or Loss
Financial Position
Debit Credit Debit Credit Debit Credit

(equity accounts, not liabilities)

Calculations:

1 new share 4old share

200,000 800,000
K của các em cũng có vấn đề chỗ này, mệnh giá cổ phiếu cũ là 50p chứ không phải 1 pound nên số liệu tài khoản SC và SP của cô và SGK là

Bên này là quan điểm SGK:

Non-current liabilities
Borrowings 180,000
Current-liabilities
Borrowings 20,000
Bank overdraft 0
Trade payables 275,400 SGK của các em bị sai, W3 ra là 275,400 nhưng đưa vào s
Accruals 30,000 SGK của các em cũng bị trật chỗ này, accruals còn một kh

Deferred income 0 Như vậy quan điểm của sách GK ở bài này là không có de
Provision 100,000
Tax payable 350,000
Total equity and liabilities 2,472,000
 Adjustment entries Note for students:
1/LT borrowings 180,000
ST borrowings 20,000

2/ Dr Tuition fees (Rev) 150,000

Cr Defered income 150,000
Dr Revenues 100,000
Cr Defered income 100,000 Data given

3/DR COS (depre) 62,000

CR Accum.depre 62,000

Dr Admin Ex (Depre) 20,000 Minus Land, b/c land don’t have Depre
Cr Accum.depre 20,000

4/DR Admin Ex 100,000 Legal claims over 50% then have to make provisions
Cr Provisions 100,000

5/DR Admin Ex 10,000

CR TR 10,000

6/Ending balance of Inv = 110,000 Inv

113,400
Dr COS 4,453,400 4,450,000 y=113400+4450000-110000 = 4,453,4
Dr Ending b/l Inv 110,000
Cr Begin b/l Inve 113,400 110,000
Cr Manufacturing cost 4,450,000 Over-allocation of fixed overhead: có nghĩa là chi p

7/DR Income tax 350,000

CR Tax payable 350,000
Dr Retained earnings 10,000
CR Dividend payable 10,000

8/DR Admin Ex 20,000

Cr Accruals 20,000

9/Dr Prepayment 20,000

Cr Admin Ex 20,000

10/Dr Share premium 100,000 Pay attention to the face value of the share is just 50p
Cr Share capital 100,000
nên số liệu tài khoản SC và SP của cô và SGK là khác nhau !

c em bị sai, W3 ra là 275,400 nhưng đưa vào sOFP là 295,400

c em cũng bị trật chỗ này, accruals còn một khoản ở nv số 8

uan điểm của sách GK ở bài này là không có deffered income, các khoản Deferred income chuyển hết thành Trade payable
 make provisions

COS

+4450000-110000 = 4,453,400 4,453,400

overhead: có nghĩa là chi phí sản xuất chung đã bị phân bổ thừa, phải loại trừ khỏi số dư tồn kho cuối kỳ.

he share is just 50p

 Jayne Plc

Account Title Unadjusted Balance

Debit Credit
1 Cash at bank 15,477
2 Trade receivables 12,691
3 Inventories at 31/12/20X2 39,323
4 Non-current assets at cost 157,680
5 Provision for depreciation at 31/12/20X1 40,630
6 Accrued expenses at 31/12/20X2 2,500
7 Payables due within one year (includes preference dividends payable 49,809
8 Corporation tax at 31/12/20X1 15,000
9 10% loan (repayable in 10 years) 33,000
10 £1 Equity share capital 11,000
11 Share premium 7,500
12 60% £1 preference share capital (irredeemable) 6,000
13 Accumulated profits at 31/12/20X1 26,014
14 Preference dividend paid 3,600
15 Equity dividend paid 4,000
16 Revenue 726,370
17 Cost of sales 426,772
18 Administrative salaries 198,076
19 Distribution costs 61,554
20 Sale proceeds of motor vehicle 1,350
Total 919,173 919,173

Statement of profit or loss for the year ended 31/12/x2 Workings

Revenue 726,370
COS 433,798
Gross profit 292,572
Distribution costs 67,011
Administrative expense 208,678
Other operating expense 0
Profit/loss from operating 16,883
Finance costs 3,300
Profit/loss before tax 13,583
Income tax 12,400
Profit for the year 1,183

Statement of financial position at 31/12/X2

Non-current assets 97,760
PPE
Land 25,000
Other non-current assets 72,760 Net figures = Total NCA - L
Intangibles assets 0
Inventories 39,323
 Trade receivables 11,871
Prepayments 375
Cash and cash equivalents 24,477
Total assets 173,806

Equity
Equity share capital 13,200
Preference share capital 6,000
Share premium 5,300
Retained earnings 19,597

Non-current liabilities
Borrowings 33,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 58,809 See Yellow note above
Accruals 5,900
Deferred income 0
Provision 20,000
Tax payable 12,000 See Tax payable T- accoun
Total equity and liabilities 173,806

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of
Adjustment Statement of Profit or Loss
Financial Position
Debit Credit Debit Credit Debit Credit

Dividend of preference share have to be paid first

Dr RE 3,600
Cr Preference Div payable 3,600
Equal to the amount of Preference Div paid in TB, then no more accruals sho

Tax payable acct analysis

Calculations: 15,000

15,400 12,400

12,000

t figures = Total NCA - Land - accum depre at the end of X2 - carrying amount of asset sold out
e Yellow note above

e Tax payable T- account analysis above

in paper, then use calculators to gather numbers for each items.

 Note: tuff question, pay attention to Tax accounts, tax expense and Admin Analysis

Adjustment entries Note for students:

1/Dr Sales proceeds 1,350
Dr Accum Depre 900 Any loss increase COS, then any gain decrease COS
Cr Motor vehicle 2,000
Cr Gain on sale (COS account) 250

2/ Total depre ex = 18,190 Carrying amount = {(157,680 total - 2,000 sold out - 25,000 land
Allocation for different types of costs:
Dr COS 40% 7,276
Dr Distribution cost 30% 5,457
Dr Admin Ex 30% 5,457
Cr Accum Depre 18,190

3/ Dr Share premium 2,200 Bonus issue for £1 share, 1 for 5 equity shares
CR Share capital 2,200

4/ Dr Prepayment 375 Rate repayment

Cr Admin Ex 375
Dr Admin Ex 100 Insuarance accruals
Cr Accruals 100

5/Dr Finance costs 3,300 Interest accruals

Cr Accruals 3,300
Dr Income tax ex 12,000
Cr Tax payable 12,000
6/ Dr Tax payable 15,400 Errors in accounting Right: Dr Tax payable/Cr Cash
Cr Admin Ex 15,400 Wrong: Dr Admin Ex/Cr Cash
Dr Income tax ex 400 Underprovision of tax payment for previous year Dr Income tax e
Cr Tax payable 400
7/ Dr Admin ex 453 Write off TR
Cr TR 453
Dr Admin Ex 367 3% allowance of remaining TR balance
Cr Allowance for TR 367

8/ Dr Admin Ex 20,000 legal claim with >50% chance of payment would be made provis
Cr Provision 20,000

9/Dr Cash 9,000

CR TP 9,000

of asset sold out

 decrease COS

2,000 sold out - 25,000 land) - (40,630 total accum depre - 900 depre sold out)} x 20%

payable/Cr Cash
min Ex/Cr Cash
previous year Dr Income tax ex

ment would be made provisions

 Skylar Plc

Account Title Unadjusted Balance

Debit Credit
1 Cash at bank 7,997
2 Trade receivables 6,690
3 Inventories at 1/11/20X6 8,456
4 Property (freehold buidings) cost 20,000
5 Property (freehold buidings) - accumulated depreciation at 1/11/20X6 2,500
6 Plant and equipment cost 38,460
7 Plant and equipment - accumulated depreciation at 1/11/20X6 21,128
8 Accruals at 31/10/20X7 387
9 Trade payables 3,348
10 5% bank loan repaybable in 10 years 20,000
11 Share capital 15,000
12 Retained Earnings 12,345
13 Dividend paid 1,300
14 Sales 50,197
15 Purchases 30,946
16 Distribution costs 6,654
17 Administrative expenses 3,652
18 Interest 750
Total 124,905 124,905

Statement of profit or loss for the year ended 31/10/x7 Workings

Revenue 53,761
COS 33,462
Gross profit 20,299
Distribution costs 6,687
Administrative expense 4,400
Other operating expense 0
Profit/loss from operating 9,212
Finance costs 1,000
Profit/loss before tax 8,212
Income tax 1,254
Profit for the year 6,958

Statement of financial position at 31/12/X4

Non-current assets
PPE
Land and buildings 17,000
Plant and equipment 13,486
Intangibles assets 0
Inventories 9,786
Trade receivables 10,239
Prepayments 32
 Cash and cash equivalents 7,982
Total assets 58,525

Equity
Equity share capital 15,000
Preference share capital 0
Share premium 0
Retained earnings 18,003

Non-current liabilities
Borrowings 20,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 3,348
Accruals 670
Deferred income 0
Provision 250
Tax payable 1,254
Total equity and liabilities 58,525

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of
Adjustment Statement of Profit or Loss
Financial Position
Debit Credit Debit Credit Debit Credit

Calculations:
s in paper, then use calculators to gather numbers for each items.
 £'000 £'000

Adjustment entries Note for students:

1/Dr COS 3,846 Plant
Cr Accum Depre 3,846
Dr Admin Ex 500 Buildings
Cr Accum Depre 500

2/ Dr TR 3,564 We don’t need to record COS b/c COS would be found when
Cr Sales 3,564

3/Calculate Ending Inv:

Cost + 25% cost = 12,232,500
Cost = 9,786 Inv
8,456
Dr COS 29,616 Purchases COS
Dr Ending Inv 9,786 30,946 29,616
Cr Begin Inv 8,456
Cr Purchases 30,946
9,786
4/Dr Prepayment 32 8 months of prepayment
Cr Admin ex 32

5/Dr Interest Ex (Finance cost) 250

Cr Accruals (interest payable) 250

6/Dr Tax Ex 1,254

Cr Tax payable 1,254

7/Dr TR 15 unit:£'000
Cr Cash 15
Dr Admin Ex 30
Cr TR 30

8/Dr Distribution Ex 33
Cr Accruals 33

9/Dr Admin Ex 250

Cr Provision 250
OS would be found when we analyse Inv T-accounts and COS accounts (balancing figures)
 Corolla Plc

Account Title Unadjusted Balance Adjustment

Debit Credit Debit

1 Cash at bank 9,774
2 Trade receivables 5,436
3 Inventories at 1/11/20X7 9,032
4 Land and buildings - cost 35,152
5 Land and building - accumulated depreciation at 1/11/20X7 7,000
6 Plant and equipment cost 12,500
7 Plant and equipment - accumulated depreciation at 1/11/20X7 7,400
8 Trade Payables 2,798
9 Accruals at 31/10/20X8 436
10 8% bank loan repayable in 10 years 15,000
11 Share capital ( £1 shares) 20,000
12 Share premium 5,000
13 Retained Earnings 9,801
14 Equity dividend paid 1,500
15 Revenue 58,411
16 Purchases 41,620
17 Distribution costs 5,443
18 Administrative expenses 4,789
19 Interest paid 600
Total 125,846 125,846

Statement of profit or loss for the year ended 31/10/x8 Workings Calculations:
Revenue 58,411
COS 43,342
Gross profit 15,069
Distribution costs 6,026
Administrative expense 5,360 ở bài này các em phải chú ý nghiệp vụ s
Other operating expense 0 Vì đề bài không nói rõ insuarance ex là A
Profit/loss from operating 3,683 Tự phân loại lại Insuarance ex là Admin
Finance costs 1,200 Nếu không các em sẽ bị sót khoản chi p
Profit/loss before tax 2,483
Income tax 970
Profit for the year 1,513

Statement of financial position at 31/12/X4

Non-current assets
PPE
Land and buildings 27,752
Plant and equipment 4,080 Các em chú ý đọc kỹ đề phương pháp tr
Intangibles assets 0
Inventories 7,878
Trade receivables 5,164
 Prepayments 30
Cash and cash equivalents 9,774
Total assets 54,678

Equity
Equity share capital 25,000
Preference share capital 0
Share premium 0
Retained earnings 9,814

Non-current liabilities
Borrowings 15,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 2,843
Accruals 1,051
Deferred income 0
Provision 0
Tax payable 970
Total equity and liabilities 54,678

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 £'000
Statement of Statement of
Adjustment
Profit or Loss Financial Position
Adjustment entries
Credit Debit Credit Debit Credit 1/Dr COS 42,774
Dr Ending Inv 7,878
CR Begin Inv
Cr Purchases

2/ Total Depre ex (building) 400

Total Depre ex (Plant and eq) 1,020
Allocate Depre Ex:
Dr COS 40% 568
Dr Distribution cost 40% 568
Dr Admin ex 20% 284
Cr Accum Depre - building
Cr Accum Depre - plant and Eq

3/ Dr Distribution cost 15
Cr Accruals

4/ Dr Finance costs 600

Cr Accruals (interest)

5/Dr Income tax ex 970

Cr Tax payable
Calculations:
6/Number of bonus shares: 5,000
Dr Share premium 5,000
Cr Share capital

ác em phải chú ý nghiệp vụ số 8 7/ Dr Admin ex 272

ông nói rõ insuarance ex là Admin Ex nên mình phải có xét đo Cr Allowance for TR
ại lại Insuarance ex là Admin ex để tiến hành điều chỉnh
các em sẽ bị sót khoản chi phí này trong P&L. 8/Correcting entries:
Dr Insurance ex 45
Cr Trade payables
Adjust 8 months prepaid:
Dr Prepayment 30
Cr Insurance ex

ý đọc kỹ đề phương pháp trích khấu hao của Plant &eq là Reducing balance (trích trên số dư giảm dần của TSHH)
tries in paper, then use calculators to gather numbers for each items.
 £'000

Note for students:

Inv
9,032
9,032 Purchases COS
41,620 41,620 42,774

Not include Land

7,878 £'000
8 months of prepayment

400
1,020

£'000
15

6 months of interests
600

£'000
970

unit:£'000

5,000

272

8 months prepaid insurance

Right: Dr Insurance ex/Cr Cash 45
45 Wrong: Dr Trade payables/ Cr Cash 45

30
 Ariel Plc

Account Title Unadjusted Balance

Debit Credit
1 Cash at bank 2,578
2 Trade receivables 2,133
3 Inventories at 1/4/20X1 3,790
4 Land and buildings - cost/value 22,780
5 Buildings - accumulated depreciation 16,276
6 Plant and machinery - cost/value 14,000
7 Plant and machinery - accumulated depreciation 3,600
8 Trade Payables 1,347
9 Accruals at 31/3/20X2 129
10 6% bank loan repayable in 15 years 12,000
11 Equity share capital ( £1 shares) 5,000
12 Retained Earnings 4,595
13 Dividend paid 920
14 Revenue 35,547
15 Purchases 27,481
16 Distribution costs 1,857
17 Administrative expenses 2,235
18 Interest paid 720
Total 78,494 78,494

Statement of profit or loss for the year ended 31/10/x7 Workings

Revenue 35,547
COS 28,354
Gross profit 7,193
Distribution costs 1,933
Administrative expense 2,232
Other operating expense 0
Profit/loss from operating 3,028
Finance costs 720
Profit/loss before tax 2,308
Income tax 874
Profit for the year 1,434

Statement of financial position at 31/3/X2

Non-current assets
PPE
Land and buildings 6,504
Plant and equipment 9,250
Intangibles assets 0
Inventories 4,067
Trade receivables 2,038
Prepayments 123
 Cash and cash equivalents 2,578
Total assets 24,560

Equity
Equity share capital 5,000
Preference share capital 0
Share premium 0
Retained earnings 5,109

Non-current liabilities
Borrowings 12,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 1,347
Accruals 205
Deferred income 0
Provision 25
Tax payable 874
Total equity and liabilities 24,560

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of
Adjustment Statement of Profit or Loss
Financial Position
Debit Credit Debit Credit Debit Credit

Calculations:
nt entries in paper, then use calculators to gather numbers for each items.
 £'000 £'000

Adjustment entries Note for students:

1/Dr COS 27,204 Inv
Dr Ending Inv 4,067 3,790
CR Begin Inv 3,790 Purchases COS
Cr Purchases 27,481 27,481 27,204

2/ No adjustment for Accum Depre of PPE

4,067 £'000
3/ Test impairment of plant:
Carrying amount (CA) 9,650 £'000
Recoverable amount (RA) 8,500
Impairment loss = 1,150
Adjust entry:
Dr COS 1,150
Cr Plant 1,150

4/No adjustment for land depre

5/ 3 month prepayment of admin ex:

Dr Prepayment 123 £'000
Cr Admin ex 123

6/2 months accruals of rent space for goods storage

Dr Distribution costs 76 £'000
Cr Accruals 76

7/Dr Income tax ex 874 £'000

Cr Tax payable 874

8/ Dr Admin Ex 95 write off

Cr TR 95

9/Dr Admin Ex 25 £'000

Cr Provision 25
 Enercell Plc

Account Title Unadjusted Balance

Debit Credit
1 Cash at bank 11,996
2 Trade receivables 15,381
3 Closing inventories 18,000
4 Property (freehold buildings) - cost 30,000
5 Property (freehold buildings) - accumulated depreciation at 1/11/20X6 3,750
6 Plant and machinery - cost 57,690
7 Plant and machinery - accumulated depreciation at 1/11/20X6 31,692
8 Trade Payables 5,022
9 Accruals 580
10 5% bank loan repayable in 10 years 30,000
11 Equity share capital ( £1 shares) 20,000
12 Share premium 2,500
13 Retained Earnings 18,518
14 Dividend paid 1,950
15 Gross profit 39,539
16 Distribution costs 9,981
17 Administrative expenses 5,478
18 Interest 1,125
Total 151,601 151,601

Statement of profit or loss for the year ended 31/10/x7 Workings

Gross profit 35,939

Distribution costs 9,993
Administrative expense 12,699
Other operating expense 0
Profit/loss from operating 13,247
Finance costs 1,500
Profit/loss before tax 11,747
Income tax 1,881
Profit for the year 9,866

Statement of financial position at 31/10/X7

Non-current assets
PPE
Land and buildings 25,500
Plant and equipment 20,229
Intangibles assets 0
Inventories 14,400
Trade receivables 15,381
Prepayments 48
 Cash and cash equivalents 11,987
Total assets 87,545

Equity
Equity share capital 22,000
Preference share capital 0
Share premium 500
Retained earnings 26,434

Non-current liabilities
Borrowings 30,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 5,013
Accruals 967
Deferred income 0
Provision 750
Tax payable 1,881
Total equity and liabilities 87,545

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 £'000
Statement of Profit Statement of
Adjustment
or Loss Financial Position
Adjustment entries
Debit Credit Debit Credit Debit Credit 1/Total Depre - Plant &eq = 5,769
Total depre - Buildings = 750

Dr Admin ex 6,519
Cr Accum Depre - plant
Cr Accum Depre - building
2/Calculate Ending Inv:
Cost + 25% cost = 18,000
Cost of ending Inv= 14,400
Correcting errors:
Dr COS 3,600
Cr Ending inv
3/Adjust 8 months of insurance prepayment:
Dr Prepayment 48
Cr Admin ex

4/Dr Finance costs 375

Cr Accruals

5/Dr Income tax ex 1,881

Cr Tax payable
Calculations:
6/Legal claim of 75% chance of payment:
Dr Admin ex 750
Cr Provision

7/Accruals of rent payment - 3 months:

Dr Distribution costs 12
Cr Accruals

8/Dr Share premium 2,000

Cr Share capital

9/Correct errors:
Dr TP 9
Cr Cash
in paper, then use calculators to gather numbers for each items.
£'000

Note for students:

5,769
750

Pay attention: U probably don’t know this is an error, which needs correcting entry.

unit:£'000
Over-estimate ending inv
3,600

unit:£'000
48

3 months of interest accrued

375

unit:£'000
1,881

unit:£'000
750

unit:£'000
12

unit:£'000
2,000

unit:£'000
9
 Liquid Plc

Account Title Unadjusted Balance

Debit Credit
1 Bank overdraft 8,000
2 Trade receivables 45,000
3 Inventories at 1/7/20X6 35,000
4 Land and buildings - cost 975,000
5 Land and buildings - accumulated depreciation at 1/1/20X6 178,000
6 Plant and equipment - cost 267,000
7 Plant and equipment - accumulated depreciation at 1/1/20X6 95,000
8 Account Payables 20,000
9 Advance deposits from customers 4,000
10 Bank loan 50,000
11 Equity share capital ( £1 shares) 300,000
12 Share premium 50,000
13 Retained Earnings 55,000
14 Equity dividend paid 5,000
15 Sales 1,590,000
16 Purchases 600,000
17 Distribution costs 236,000
18 Irrecoverable debts expense 15,000 U SHOULD NOTE HERE: OTHER OPER
19 Administrative expenses 169,000 If not, u will forget to add it up.
20 Loan interest paid 3,000
Total 2,350,000 2,350,000

Statement of profit or loss for the year ended 31/12/x6 Workings

Revenue 1,590,000
COS 541,700
Gross profit 1,048,300
Distribution costs 231,000
Administrative expense 191,500
Other operating expense 69,000
Profit/loss from operating 556,800
Finance costs 3,000
Profit/loss before tax 553,800
Income tax 45,000
Profit for the year 508,800

Statement of financial position at 31/12/X6

Non-current assets
PPE
Land and buildings 779,500
Plant and equipment 145,300
Intangibles assets 0
Inventories 120,000
 Trade receivables 16,000
Prepayments 5,000
Cash and cash equivalents 0
Total assets 1,065,800

Equity
Equity share capital 350,000
Preference share capital 0
Share premium 0
Retained earnings 558,800

Non-current liabilities
Borrowings 50,000
Current-liabilities
Borrowings 0
Bank overdraft 17,000
Trade payables 11,000
Accruals 5,000
Deferred income 4,000
Provision 25,000
Tax payable 45,000
Total equity and liabilities 1,065,800

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of Statement of
Adjustment
Profit or Loss Financial Position
Adjustment entries
Debit Credit Debit Credit Debit Credit 1/Dr COS 515,000
Dr Ending Inv 120,000
CR Begin Inv 35,000
Cr Purchases 600,000

2/Total Depre ex- buildings = 17,500

Total Depre ex - plant = 26,700
Dr Admin ex 17,500
Cr Accum depre - buildings 17,500
This is Unearned rev Dr COS 26,700
Cr Accum depre - Plant 26,700

3/Dr TP 9,000
Cr Cash 9,000

4/Dr Other oper.ex 13,000

Cr TR 13,000
Dr Other operating ex 16,000
HOULD NOTE HERE: OTHER OPERATING EX Cr allowance of TR 16,000
ot, u will forget to add it up.
5/3 months of prepayment:
Dr Prepayment 5,000
Cr Distribution costs 5,000
Calculations:
6/Accrual of insurance premium:
Dr Admin ex 5,000
Cr Accruals 5,000

7/Dr Share premium 50,000

Cr Share capital 50,000

8/ 6 months accrued interest: 3,000

We don’t have to accrued interest here b/c
on TB, interest paid £3,000 enough!

9/Dr Income tax ex 45,000

Cr Tax payable 45,000

10/Dr other oper.ex 25,000

Cr Provision 25,000
nt entries in paper, then use calculators to gather numbers for each items.
 Note for students:
Inv
35,000
Purchases COS
600,000 515,000

120,000

write off

£1 shares
COLBOLT PLC
The trial balance for Colbolt PLC at at 31 March 20x7 is shown below:
Account Title £
Debit
1 Equity share capital ( £1 per shares)
2 Share premium
3 Trade payables
4 Trade receivables 12,039
5 Accruals
6 6% bank loan repayable in 10 years
7 Cash at bank 9,997
8 Retained Earnings
9 Interest 1,125
10 Gross profit
11 Distribution costs 4,548
12 Administrative expenses 8,800
13 Dividends paid 2,100
14 Closing inventories 19,000
15 Property (freehold buildings) - cost 32,520
16 Property (freehold buildings) - accummulated depreciation as at 1 April 20x6
17 Plant and equipment - cost 57,688
18 Plant and equipment - accummulated depreciation as at 1 April 20x6
TOTAL 147,817

Statement of profit or loss for the year ended 31/12/x6 Workings

Revenue 0
COS 0
Gross profit 30,364
Distribution costs 4,548
Administrative expense 21,469
Other operating expense 0
Profit/loss from operating 4,347
Finance costs 1,500
Profit/loss before tax 2,847
Income tax 1,566
Profit for the year 1,281

Statement of financial position at 31/12/X6

Non-current assets
PPE
Freehold buiding 26,829
Plant and equipment 18,385
Intangibles assets 0
Inventories 15,833
Trade receivables 7,374
Prepayments 20
Cash and cash equivalents 10,006
Total assets 78,447

Equity
Equity share capital 19,800
Preference share capital 0
Share premium 2,700
Retained earnings 20,903
43,403
Non-current liabilities
Borrowings 25,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 7,963
Accruals 515
Deferred income 0
Provision 0
Tax payable 1,566
Total equity and liabilities 78,447
 1/ Admin ex 8,024
£ Accum depre- PPE 7,211
Credit Accum depre - freehold building 813
18,000
4,500 2/Calculate Ending Inv:
7,954 Cost + 20% cost = 19,000
Cost = 15,833
140
25,000 Dr COS 3,167
Cr Ending inv 3,167
21,722
3/ loan interest:
33,931 Dr Finance cost 375
Cr Accruals 375

4/ Income tax ex 1,566

Income tax payable 1,566

4,878 5/ SP 1,800
SC 1,800
31,692 18000/10
147,817
6/ Correct entry:
It was Dr TP/Cr Cash 21
It should Dr TP/Cr Cash 12
Correct: Dr Cash/Cr TP 9

7/ Dr Admin ex 165
Cr TR 165

Dr Admin ex 4,500
Cr Allowances for receivables 4,500

8/ Prepayments 20
Admin ex 20

9/ CA = 8,000 - 3100 = 4,900

RA = 4,500
Impairment loss = 400
Dr COS 400
Cr Plant 400
WATERFORD PLC

The trial balance for Waterford PLC as at 31 May 20x6 is shown below:
Account Title

1 Equity share capital ( £1 per shares)

2 Share premium
3 Trade payables
4 Trade receivables
5 Accruals
6 7,5% bank loan repayable in 8 years
7 Cash at bank
8 Retained Earnings
9 Interest
10 Gross profit
11 Distribution costs
12 Administrative expenses
13 Dividends paid
14 Closing inventories
15 Property (freehold buildings) - cost
16 Property (freehold buildings) - accummulated depreciation as at 1 June 20x5
17 Plant and equipment - cost
18 Plant and equipment - accummulated depreciation as at 1 June 20x5
19 Motor vehicles - cost
20 Motor vehicles - accummulated depreciation as at 1 June 20x5
21 Suspense
TOTAL

Statement of profit or loss for the year ended 31/12/x6

Revenue
COS
Gross profit
Distribution costs
Administrative expense
Other operating expense
Profit/loss from operating
Finance costs
Profit/loss before tax
Income tax
Profit for the year

Statement of financial position at 31/12/X6

Non-current assets
PPE Property
Plant and equipment
Motor vehicles
Intangibles assets
 Inventories
Trade receivables
Prepayments
Cash and cash equivalents
Total assets

Equity
Equity share capital
Preference share capital
Share premium
Retained earnings
Total Equity:
Non-current liabilities
Borrowings
Current-liabilities
Borrowings
Bank overdraft
Trade payables
Accruals
Deferred income (unearned revenues)
Provision
Tax payable
Total liabilities
Total equity and liabilities
 Bai nay luu y co nghiep vu ban TS Motor tu dau nam, cho nen sau khi dieu chinh Dispos

£ £ ADJUSTMENTS:
Debit Credit 1/
25,000 Dr Admin ex (depre building) 1,590
9,000 Dr COS 5,102
675 Cr Accum depre - building 1,590
8,890 Cr Accum depre - PPE 2,852
567 Cr Motor vehicles 2,250
14,000
5,678 2/ Errors" Dr Cash 2,500
48,144 Cr Suspenses a/c 2,500
600
45,998 Correct Dr AD 1,833 Explained for AD from1/7
10,089 Dr Suspense a/c 2,500 AD = 8000*25%*11/12
27,557 Dr Loss on disposal (COS) 3,667
600 Cr Motor vehicles 8,000
3,757 3/
80,000 Dr Income tax ex 8,000
7,000 Cr Income tax payables 8,000
26,100
7,086 4/ Adjust for over-allocation of fixed overhead:
17,000 Dr COS 78
5,200 CR Inventories ending 78
17,601
180,271 180,271 5/ Dr Suspenses a/c 6,250
Cr SC 6,250
Workings Correct interest for the y
0 6/ Finance cost 450 1,050
0 Accruals 450
37,151
10,089 7/ Dr Admin ex 650
29,989 Cr TR 650
0
-2,927 3% of the left receivables = 247
1,050 Dr Admin ex 247
-3,977 Cr Allowances for receivables 247
8,000
-11,977 8/ Dr Suspense a/c 8,851 Coi chung sai but toan nay
Cr Unearned rev 8,851
Can ghi Dr Rev/Cr Unear
9/ Dr Prepayments 55 Da Ghi Dr Rev/Cr Suspen
71,410 Cr Admin ex 55 -
16,162
3,383 Chinh lai them AD va Cost cua TS bi ban
0
 3,679
7,993
55
5,678
108,360

31,250
0
9,000
35,567
75,817

14,000

0
0
675
1,017
8,851
0
8,000
32,543
184,177
108,360
sau khi dieu chinh Disposal of Motor can phai quay lai chinh so lieu khau hao

Explained for AD from1/7/x4 to 1/6/x5: 11 months

AD = 8000*25%*11/12

Correct interest for the year =

sai but toan nay

Can ghi Dr Rev/Cr Unearned Rev 8,851

Da Ghi Dr Rev/Cr Suspenses a/c 8,851
 Shindig Plc

Account Title Unadjusted Balance

Debit Credit
1 Bank account 440,200
2 Trade receivables 420,300
3 Raw materials 294,500
4 Work in progress 1/1/20X4 125,500
5 Inventories of finished games 1/1/20X4 155,600
6 Leasehold Buildings 300,000
7 Accumulated depreciation on buildings 1/1/20X4 60,000
8 Computers used on site 50,000
9 Accumulated depreciation on computers 1/1/20X4 20,000
10 License 60,000
11 Trade paybale 80,200
12 Income tax 12,400
13 5% preference share capital (redeemable) - £1 nominal value 120,000
14 Equity share capital - £1 nominal value 500,000
15 Share premium 100,000
16 Retained earnings 30/9/20X4 102,300
17 Equity dividend paid 30/9/20X4 125,000
18 Allowances for receivables 18,765
19 Suspense account 83,765
18 Revenue 1,705,600
19 Production staff cost (charged to cost of sales) 620,400
20 Consultancy fees paid (charged to other expenses) 44,000
Total 2,719,265 2,719,265

Statement of profit or loss for the year ended 31/12/x4 Workings

Revenue 1,705,600
COS 880,500
Gross profit 825,100
Distribution costs 0
Administrative expense 0
Other operating expense 157,765
Profit/loss from operating 667,335
Finance costs 6,000
Profit/loss before tax 661,335
Income tax 107,600
Profit for the year 553,735

Statement of financial position at 31/12/X4

Non-current assets
PPE Computers 20,000
Leasehold buildings 230,000
Intangible assets (license) 40,000
Intangibles assets
Inventories 315,500
Trade receivables 356,535
Prepayments 0
Cash and cash equivalents 435,200
Total assets 1,397,235

Equity
Equity share capital 500,000
Preference share capital 0
Share premium 0
Retained earnings 531,035

Non-current liabilities
Borrowings (Redeemable preference shares) 120,000
Current-liabilities
Borrowings 0
Bank overdraft 0
Trade payables 75,200
Accruals 6,000
Deferred income 35,000
Provision 10,000
Tax payable 120,000
Total equity and liabilities 1,397,235

Due to time limit, u guys shouldn’t finish the whole TB. U should write down Adjustment entries in paper, then use calcu
Practice makes perfect. Good luck.
 Statement of
Adjustment Statement of Profit or Loss
Financial Position
Debit Credit Debit Credit Debit Credit

Calculations:
Rev - Unearned Rev

Be careful: U may think There's no finance cost at all.

But we do have 5% preference share capital (redeemable) is liabilities

Net figures
 Net figures: minus write off and allowances

B/c Redeemable Preference share is long term liabilites

Redeemable preference shares

nt entries in paper, then use calculators to gather numbers for each items.
 This is a very tuff and tough question for u, pay attention

Adjustment entries Note for students:

1)Dr Ending WIP 140,000 1/Ending b/l for Finished goods (FG) = 180,000 - 10x(500
Dr Ending FG 175,500 2/ Ending b/l for WIP = 140,000 (data in add info no.1)
Dr COS 880,500
Cr Materials 294,500 Materials
Cr Staff costs 620,400
Cr Begin b/l WIP 125,500 294,500 294,500
Cr Begin b/l FG 155,600

2) Dr Other oper.ex (amortisation) 20,000 All materials used in WIP

Cr Accum.Amortisation 20,000
Staff cost
3)Dr Other oper.ex(depreciation) 20,000
Cr Accum.Depre 20,000 620,400 620,400

4) Dr Other oper. Ex (irre. debts) 45,000

Cr T.R 45,000
Dr Other Oper.ex (allowances) 18,765
Cr Suspense Account 18,765

Vi so du toi da cua SP chi la

100,000, suy ra so luong co
phieu thuong toi da chuyen sang
5) Dr Income tax ex 120,000 SC la 100,000, but toan sua sai,
Cr Income tax payable 120,000 ko quan tam SC vi SC da dung
roi!
Dr (overprovision)income tax (paybles) 12,400 53,765
Cr Income tax expense 12,400
6) Dr Share premium 100,000
Cr Suspense account 100,000
7) Dr TP 5,000
Cr Cash 5,000
8)Dr Suspense account 35,000 Right: Dr Cash/Cr Deferred income
Cr Deferred income 35,000 Wrong: Dr Cash/Cr Suspense account

9) Dr Other oper.ex 10,000 83,765

Cr Provision 10,000

10) Dr Finance cost 6,000

Cr Accruals (interest payable) 6,000
uestion for u, pay attention to it at your utmost.

ds (FG) = 180,000 - 10x(500 - 50)=175,500

00 (data in add info no.1)

WIP FG
125,500 155,600
294,500 x = 125,500+294,500+620,400-140,000=900,400 900,400 y=155,600+900,400-175,500=880,500
620,400
140,000 175,500

Note: total ending balance of WIP and FG would be totalled in 1 line Inventories on the face of SOFP, and COS is presented in
There no ending balance of materials and staff costs
Maybe u guys cant write down adjustment entries No.1 (like the way I present in file), but u have to know how to draw T-acco

SP chi la
uong co
chuyen sang
oan sua sai,
C da dung

ash/Cr Deferred income

Cash/Cr Suspense account
 COS

75,500=880,500 880,500

nd COS is presented in SPL

now how to draw T-accounts for calculating COS and pick out ending balance Inv in SOFP from ending balance of WIP and FG