W1 before W1 after

Anna Sumitra Anna and Sumitra

$ $ Statement of financial position at 1-Jan-16
Non current assets 50,000 45,000 $
Non current assets 112,000
Current assets
Inventory and trade receivables 15,000 8,000 Current assets
Cash and cash equivalents 3,000 1,000 Inventory and trade receivables 18,000
18,000 9,000 Cash and cash equivalents 4,000
22,000
Assets 68,000 54,000
Assets 134,000
Capital 62,000 50,000
Capital
Current liabilities Anna 69,000
Trade payables 6,000 4,000 Sumitra 55,000
124,000
Capital and liabilities 68,000 54,000
Current liabilities
Trade payables 10,000

Capital and liabilities 134,000

 W2 W3 Date
Bert Mary Total Note 1 1-Apr
$ $ $ 2 1-Apr
Note Net assets at valuation 400,000 500,000 900,000 3 1-Apr
60k anna + 52k sumitra Goodwill at valuation 60,000 30,000 90,000 4 1-Apr
460,000 530,000 990,000 5 1-Apr
6 1-Apr
12k anna + 6k sumitra Goodwill written off (45,000) (45,000) (90,000) 90k x 1/2 each 7 1-Apr
3k anna + 1k sumitra 8 1-Apr
Opening capital account 415,000 485,000 900,000 9 1-Apr
10 1-Apr
Profit and losses are shared equally 11 1-Apr
12 1-Apr
13 1-Apr
60k + 12k + 3k - 6k 14
52k + 6k + 1k - 4k 15
16
17
18
6k anna + 4k sumitra 19
20
21
22
23
24
25
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28
29
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31
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35
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 Debit $ Credit $ Note Capital account
Bal b/d Capital Don 55,000 86,000 86,000
Bal b/d Capital Tom 55,000 Date Debit Don Tom
Motor vehicle 14,000 Capital Ron 14,000 1-Apr New goodwill 16,000 16,000
Inventory 6,000 Capital Ron 6,000
Cash 23,000 Capital Ron 23,000
Non current assets 22,000 Revaluation 22,000 122k - 100k
Revaluation 11,000 Capital Don 11,000 22k x 1/2
Revaluation 11,000 Capital Tom 11,000 22k x 1/2
Old goodwill 20,000 Capital Don 20,000 40k x 1/2
Old goodwill 20,000 Capital Tom 20,000 40k x 1/2
Capital Don 16,000 New goodwill 16,000 40k x 2/5 1-Apr Bal c/d 70,000 70,000
Capital Tom 16,000 New goodwill 16,000 40k x 2/5
Capital Ron 8,000 New goodwill 8,000 40k x 1/5
 Capital account Don, Tom & Ron
43,000 86,000 86,000 43,000 Statement of financial position at 1-Apr-16
Ron Date Credit Don Tom Ron $
8,000 1-Apr Bal b/d 55,000 55,000 Non current assets 136,000
1-Apr Motor vehicle 14,000 Current assets 79,000
1-Apr Inventory 6,000
1-Apr Cash 23,000 Assets 215,000
1-Apr Revaluation 11,000 11,000
1-Apr Old goodwill 20,000 20,000 Capital
Capital Don 70,000
Capital Tom 70,000
35,000 Capital Ron 35,000
2-Apr Bal b/d 70,000 70,000 35,000 175,000

Current accounts
Don 10,000
Tom 12,000
22,000

Current liabilities 18,000

Capital and liabilities 215,000

 Note
100k + 22k reval + 14k mv ron
50k + 6k inv ron + 23k cash ron

55k + 11k reval + 20k og - 16k ng

55k + 11k reval + 20k og - 16k ng
14k mv + 6k inv + 23k cash - 8k ng
No Date Debit $ Credit $ Note
1 31-May Bal b/d Capital Nitin 120,000
2 Bal b/d Capital Maria 120,000 Date Debit
3 Non current assets 24,000 Revaluation
4 Revaluation Capital Nitin
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Date Credit
$ Note
No Date Debit $ Credit $ Note
1 1-Oct Land and buildings 80,000
2 1-Oct Plant and machinery 28,000
3 1-Oct Motor vehicles 16,000
4 1-Oct Inventory 5,000
5 1-Oct Trade receivables 3,000
6 1-Oct Trade payables 2,000
7 1-Oct Bank 20,000
8 1-Oct Ordinary shares 100,000 100k x 1
9 1-Oct Share premium 30,000 150k paid - 20k cash - 100k ord shares
10 1-Oct Goodwill 20,000 152k cr- 132k db
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 Trial balance at 1-Oct-16 Mekong Limited
Statement of financial position at
Accounts Db ($) Cr ($) Note $
Land and buildings 280,000 200k + 80k Non current assets
Plant and machinery 103,000 75k + 28k Tangible
Motor vehicles 56,000 40k + 16k Land and buildings 280,000
Inventory 26,000 21k + 5k Plant and machinery 103,000
Trade receivables 19,000 16k + 3k Motor vehicles 56,000
Cash and cash equivalents 12,000 32k - 20k 439,000
Ordinary shares of $1 400,000 300k + 100k Intangible
Retained earnings 77,000 Goodwill 20,000
Trade payables 9,000 7k + 2k 459,000
Current assets
Share premium 30,000 Inventory 26,000
Goodwill 20,000 Trade receivables 19,000
Cash & cash equivalents 12,000
57,000

Assets 516,000
Mekong Limited
1-Oct-16
$
Equity
Ordinary shares of $1 400,000
Share premium 30,000
Retained earnings 77,000
507,000
Current liabilities
Trade payables 9,000
9,000

Equity and liabilities 516,000

No Date Debit $ Credit $ Note
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Accounts Db ($) Cr ($) Note $
$
A4 Date Debit $ Credit $ Note
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Accounts Db ($) Cr ($) Note $
$
W1 Date Debit $ Credit $ Note
1 31-Jul Bal b/d Capital Alan 45,000
2 31-Jul Bal b/d Capital Brian 45,000 Date
3 31-Jul Bank 6,000 Bal b/d 31-Jul
4 31-Jul Realisation 80,000 Non current assets 80,000 31-Jul
5 31-Jul Realisation 34,000 Current assets 34,000 40k - 6k bank
6 31-Jul Current liabilities 30,000 Realisation 30,000
7 31-Jul Bank 50,000 Realisation 50,000
8 31-Jul Ordinary shares 100,000 Realisation 100,000
9 31-Jul Realisation 33,000 Capital Alan 33,000 (180k - 114k) x 1/2
10 31-Jul Realisation 33,000 Capital Brian 33,000 (180k - 114k) x 1/2
11 31-Jul Capital Alan 50,000 Ordinary shares 50,000 100k x 1/2
12 31-Jul Capital Brian 50,000 Ordinary shares 50,000 100k x 1/2
13 31-Jul Capital Alan 28,000 Bank 28,000
14 31-Jul Capital Brian 28,000 Bank 28,000
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 Capital account Realisation
78,000 78,000 78,000 78,000 180,000
Debit Alan Brian Date Credit Alan Brian Date Debit $
Ordinary shares 50,000 50,000 31-Jul Bal b/d 45,000 45,000 31-Jul Non current assets 80,000
Bank 28,000 28,000 31-Jul Realisation 33,000 33,000 31-Jul Current assets 34,000
31-Jul Capital Alan 33,000
31-Jul Capital Brian 33,000

Bank
56,000
Date Debit $
31-Jul Bal b/d 6,000
31-Jul Realisation 50,000
Realisation GL W2 Date Debit $ Credit $
180,000 1 31-Oct Bal b/d Capital Lee 30,000
Date Credit $ 2 31-Oct Bal b/d Capital Mick 30,000
31-Jul Current liabilities 30,000 3 31-Oct Bal b/d Bank 2,000
31-Jul Bank 50,000 4 31-Oct Realisation 50,000 Property 50,000
31-Jul Ordinary shares 100,000 5 31-Oct Realisation 20,000 Plant and machinery 20,000
6 31-Oct Realisation 3,000 Motor vehicle 3,000
7 31-Oct Capital Mick 3,000 Realisation 3,000
8 31-Oct Realisation 8,000 Inventory 8,000
9 31-Oct Realisation 12,000 Trade receivables 12,000
10 31-Oct Trade payables 6,000 Realisation 6,000
11 31-Oct Ordinary shares 120,000 Realisation 120,000
12 31-Oct Bank 20,000 Realisation 20,000
Bank CB 13 31-Oct Realisation 28,000 Capital Lee 28,000
56,000 14 31-Oct Realisation 28,000 Capital Mick 28,000
Date Credit $ 15 31-Oct Capital Lee 60,000 Ordinary shares 60,000
31-Jul Capital Alan 28,000 16 31-Oct Capital Mick 60,000 Ordinary shares 60,000
31-Jul Capital Brian 28,000 17 31-Oct Loan 11,000 Bank 11,000
18 31-Oct Lee 8,000 Capital Lee 8,000
19 31-Oct Mick 6,000 Capital Mick 6,000
20 31-Oct Capital Lee 6,000 Bank 6,000
21 31-Oct Capital Mick 1,000 Bank 1,000
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 Note Capital account
66,000 64,000 66,000 64,000
Date Debit Lee Mick Date Credit Lee Mick Date
31-Oct Motor vehicles 3,000 31-Oct Bal b/d 30,000 30,000 31-Oct
31-Oct Ordinary shares 60,000 60,000 31-Oct Realisation 28,000 28,000 31-Oct
31-Oct Bank 6,000 1,000 31-Oct Lee 8,000 31-Oct
31-Oct Mick 6,000 31-Oct
mv taken over 31-Oct
31-Oct
31-Oct

50k x 1.20 x 2

(149k - 93k) x 1/2

(149k - 93k) x 1/2
120k x 1/2 Date
120k x 1/2 31-Oct

current acc
current acc
 Realisation GL
149,000 149,000
Debit $ Date Credit $
Property 50,000 31-Oct Capital Mick 3,000
Plant and machinery 20,000 31-Oct Trade payables 6,000
Motor vehicle 3,000 31-Oct Ordinary shares 120,000
Inventory 8,000 31-Oct Bank 20,000
Trade receivables 12,000
Capital Lee 28,000
Capital Mick 28,000

Bank CB
20,000 20,000
Debit $ Date Credit $
Realisation 20,000 31-Oct Bal b/d 2,000
31-Oct Loan 11,000
31-Oct Capital Lee 6,000
31-Oct Capital Mick 1,000
No Date Debit $ Credit $ Note
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No Date Debit $ Credit $ Note
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Accounts Db ($) Cr ($) Note $
 Part b
$
$
No Date Debit $ Credit $
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Note

Date Debit Date

Credit Date Debit $ Date Credit

Date Debit $ Date Credit

$

$
Part b Part c
Note
 Part d

$ $ $ Note