21 - 03 - 2023 Financial Accounting II

1.
Current Assets
10. Cash and Cash Equivalents (Monetary Assets)(hazır değerler)
100. Cash (petty cash) (küçük, önemsiz para)
101. Checks received (alınan çekler)
102. Banks
103. Checks Issued to Others (-) (başkalarına verilen çekler)
108. Other Monetary Assets (diğer parasal varlıklar)
100. Cash
All cash transactions of a company are recorded to 100. Cash Account.
Examples:
1) Company A is founded with 100.000 TL cash.
100.Cash
(1) 100.000
500.Capital
100.000 (1)
1)────────── \ ────────────────
100.Cash 100.000
500. Capital 100.000
───────── -----\──────────────
2) Company A paid 5.000 TL for merchandise inventory purchase:
153. Merchandise Inventory
(2) 5.000
100.Cash
(1) 100.000 5.000 (2)
2)────────── \ ────────────────
153.Merch. Inv. 5.000
100. Cash 5.000
───────── -----\──────────────
3) Sold 3.000 TL merchandise inventory for 4.000 TL in cash.
100.Cash
(1) 100.000 5.000 (2)
(3) 4.000
600. Domestic Sales
4.000 (3)
621.COGS
(3’) 3.000
153.Merch. Inventory
(2) 5.000 3.000 (3’)
3)────────── \ ────────────────
100.Cash 4.000
600.Domestic Sales 4.000
───────── -----\──────────────
3’)────────── \ ────────────────
621.COGS 3.000
153.Merch. Inv. 3.000
───────── -----\──────────────
4) Company A paid 6.000 TL for electricity and heating bill of administrative
department
770.GAE
(4) 6.000
100.Cash
(1) 100.000 5.000 (2)
(3) 4.000 6.000 (4)
4)────────── \ ────────────────
770. GAE 6.000
100. Cash 6.000
───────── -----\──────────────
NOT: Companies may have transactions with foreign currencies. However, all
of the foreign currency transactions are recorded in TL. For foreign currency
activities, further classifications are necessary such as below:
100.Cash
100.01. TL Cash
100.02. Foreign Currency Cash
100.02.01. USA Dollar
100.02.02. Euro
100.02.03. Japanese Yen

Examples:
1) Company A purchased $1.000 at an exchange rate of 19,00 TL/$
100.01. TL Cash
XXXXXXX 19.000 (1)
100.02.01. Foreign Currency Cash
(2) 19.000
1)────────── \ ────────────────
100.Cash 19.000
*100.02.01. Foreign Currency
100.Cash 19.000
*100.01. TL
───────── -----\──────────────
100 Cash
(1) 19.000 19.000 (1)

2) Company A sold $300 at an exchange rate of 20,00 TL/$ after 1 month.
100.01. TL Cash
XXXXXXX 19.000 (1)
(2) 6.000
(2) 19.000 5.700 (2)
646. Exchange Profit
300 (2)
2)────────── \ ────────────────
100.Cash 6.000
*100.01. TL cash
100. Cash 5.700
*100.02.01 Foreign Curr.
646. Exchange Profit 300
───────── -----\──────────────
100 Cash
(1) 19.000 19.000 (1)
(2) 6.000 5.700 (2)
646. Exhange Profit
300 (2)
OR
3) Company A sold $300 at an exchange rate of 18,00 TL/$
100.01. TL Cash
XXXXXXX 19.000 (1)
(3) 5.400
(2) 19.000 5.700 (3)
656. Exchange Loss
(3) 300
3)────────── \ ────────────────
100.Cash 5.400
*100.01. TL cash
656.Exchange Loss 300
100. Cash 5.700
───────── -----\──────────────
100 Cash
(1) 19.000 19.000 (1)
(3) 5.400 5.700 (3)
646. Exhange Loss
(3) 300
101. Checks Received
Checks are the most liquid account next to petty cash. Regardless of date
stated on a check, it is considered ready to be cashed according to laws.
However, it is a common practice in Turkey to issue and receive a check with
a future collection/payment date on it.
Example:
1) Sold 5.000 TL merchandise inventory for 7.000 TL and received a check

from the customer.
101.Checks Received
(1) 7.000
600.Domestic Sales
7.000 (1)
621.COGS
(1’) 5.000
XXXXXX 5.000 (1’)
1)────────── \ ────────────────
101.Checks Received 7.000
───────── -----\──────────────
1’)────────── \ ────────────────
621.COGS 5.000
153.Merch. Inv. 5.000
───────── -----\──────────────
2) Customer check is cashed the next day.
100. Cash
(2) 7.000
101.Checks Received
(1) 7.000 7.000 (2)
2)────────── \ ────────────────
100. Cash 7.000
101. Checks Received 7.000
───────── -----\──────────────
102. Banks
Refers to a bank account of company’s name/title.
Examples:
1) Company A is founded with 1.000.000 TL cash deposited to a bank account

under company title.
102. Banks
(1) 1.000.000
500.Capital
1.000.000 (1)
1)────────── \ ────────────────
102. Banks 1.000.000
500. Capital 1.000.000
───────── -----\──────────────
2) Company A paid 75.000 TL for merchandise inventory purchase and wire

transferred the amount to the seller:
153.Merchandise Inventory
(2) 75.000
102.Banks
(1) 1.000.000 75.000 (2)
2)────────── \ ────────────────
153.Merch. Inv. 75.000
102. Banks 75.000
───────── -----\──────────────
3) Sold 30.000 TL merchandise inventory for 40.000 TL in cash and an eft for
the sales amount is received from the customer.
102.Banks
(1) 1.000.000 75.000 (2)
(3) 40.000
600. Domestic Sales
40.000 (3)
621.COGS
(3’) 30.000
(2) 75.000 30.000 (3’)
3)────────── \ ────────────────
102. Banks 40.000
───────── -----\──────────────
3’)────────── \ ────────────────
621.COGS 30.000
153.Merch. Inv. 30.000

───────── -----\──────────────
3) Company A paid 19.000 TL with automatic payment order for electricity

and heating bill of marketing department.
760.MS&DE
(4) 19.000
102. Banks
(1) 1.000.000 75.000 (2)
(3) 40.000 19.000 (4)
1)────────── \ ────────────────
760.MS&DE 19.000
102.Banks 19.000
───────── -----\──────────────
103. Checks Issued to Others (-)

Checks issued to others are payment orders upon purchase of a good or a
service. This account is a contra-asset account, that is, it has an asset code
whereas it is a liability account. (-) sign implies that 103.Checks Issued to
Others is a contra-asset and therefore it will be deducted from the assets
listed above. It is aimed to give a net total of cash available to the users of
financial statement.
As it was mentioned above regardless of date stated on a check, it is

considered ready to be cashed according to laws. However, it is a common
practice in Turkey to issue and receive a check with a future
collection/payment date on it.
Examples:
1) Merchandise Inventory is purchased, and a check is signed for 10.000 TL.
(1) 10.000
103. Checks Issued to Others
10.000 (1)
1)────────── \ ────────────────
153.Merch. Inv. 10.000
103.Checks Issued to Others 10.000
───────── -----\──────────────
2) The check is cashed by the customer via bank.
103.Checks Issued to Others
(2) 10.000 10.000 (1)
102. Banks
XXXXXXXX 10.000 (2)
2)────────── \ ────────────────
102. Banks 10.000
───────── -----\──────────────
108. Other Monetary Assets
This account is used for various purposes:
 Supplies on hand
Examples:
1) 5.000 TL is paid for supplies including stamps.
(1) 5.000
100.Cash
XXXXXXXX 5.000 (1)
1)────────── \ ────────────────
108. Other Monetary Assets 5.000
100. Cash 5.000
───────── -----\──────────────
2) 3.000 TL worth supplies have been used.
770.GAE
(2) 3.000
108.OMA
(1) 5.000 3.000 (2)
2)────────── \ ────────────────
770. GAE 3.000
108. OMA 3.000
───────── -----\──────────────
Examples:
(1) 5.000
100.Cash
XXXXXXXX 5.000 (1)
1)────────── \ ────────────────
100. Cash 5.000
───────── -----\──────────────
3.000 TL worth supplies have been used.

770.GAE
(2) 3.000
108.OMA
(1) 5.000 3.000 (2)
2)────────── \ ────────────────
770.GAE 3.000
108. OMA 3.000
───────── -----\──────────────
 Cash on its way to the company
Example 1:
1) 1.000.000 TL worth merchandise is sold for 1.200.000 TL to abroad on

FOB. The money will be received upon receival, and acceptance of the
merchandise sold.
108.OMA
(1) 1.200.000
601.International Sales
1.200.000 (1)
621.COGS
(1’) 1.000.000
XXXXXXXX 1.000.000 (1’)
1)────────── \ ────────────────
108.OMA 1.200.000
601.International Sales 1.200.000
───────── -----\──────────────
1’)────────── \ ────────────────
621.COGS 1.000.000
153.Merch. Inv. 1.000.000
───────── -----\──────────────
2) The merchandise sold is received and accepted by the customer after 30

days.
102.Banks
(2) 1.200.000
108.OMA
(1) 1.200.000 1.200.000 (2)
1)────────── \ ────────────────
102.Banks 1.200.000
108.OMA 1.200.000
───────── -----\──────────────
Example 2:
1) An affiliated Company declared dividend payment on December 31, 2022

that is payable on March 31, 2023. Our share is 800.000 TL.
108.OMA
(1) 800.000
640.Dividends Income from Affiliates
800.000 (1)
1)───Dec 31, 2022────────────────
108.OMA 800.000
640.Div. Inc. from. Affl. 800.000
───────── -----\──────────────
2) Dividend payments are made by the affiliates.
102.Banks
(2) 800.000
108.OMA
(1) 800.000 800.000 (2)
1)────March 31, 2023────────────────
102.Banks 800.000
108.OMA 800.000
───────── -----\──────────────
Exercise 1:
1) Company A is founded with the following assets:
1.500.000 TL deposited to AKBANK under Company Title.
102. Banks
(1) 1.500.000
500.Capital
1.500.000 (1)
1)────────── \ ────────────────
102.Banks 1.500.000
500.Capital 1.500.000
───────── -----\──────────────
2) Company transferred 50.000 TL to petty cash safe.
100. Cash
(2) 50.000
102.Banks
(1) 1.500.000 50.000 (2)

2)────────── \ ────────────────
100.Cash 50.000
102.Banks 50.000
───────── -----\──────────────
3) Paid 3.000 TL from cash account for office supplies.
108.OMA
(3) 3.000
100. Cash
(2) 50.000 3.000 (3)
3)────────── \ ────────────────
108.OMA 3.000
100.Cash 3.000
───────── -----\──────────────
Exercise 2:
1) Company purchased $10.000 at an exchange rate of 18,50 TL/$ on March

21, 2023.
100.02.01. Cash
(1) 185.000
100.01. Cash
XXXXXXX 185.000 (1)
1)────────── \ ────────────────
100.Cash 185.000
*100.02.01 Forgn. Curr.
100.Cash 185.000
*100.01. TL
───────── -----\──────────────
2) Company sold $10.000 at an exchange rate of 19,00 TL/$ on March 30,

2023.
100.02.01. Cash
(1) 185.000 185.000 (2)
100.01. Cash
XXXXXXX 185.000 (1)
(2) 190.000
646. Exchange Profit
5.000 (2)
1)────────── \ ──────────
100.Cash 190.000
*100.01. TL
100.Cash 185.000
*100.01. TL
646.Exchange Profit 5.000
───────── -----\──────────────
Exercise 3:
Company’s savings in bank earned 9.000 TL interest.

102. Banks
XXXXXX
9.000
642. Interest Revenue
9.000
────────── \ ────────────────
102.Banks 9.000
642. Interest Revenue 9.000
───────── -----\──────────────
Exercise 4:
1) Company A is founded with 500.000 TL cash.
100.Cash
(1) 500.000
500.Capital
500.000 (1)
1)────────── \ ────────────────
100.Cash 500.000
500. Capital 500.000
───────── -----\──────────────
2) Company A paid 90.000 TL for merchandise inventory purchase:
153. Merchandise Inventory
(2) 90.000
100. Cash
(1) 500.000 90.000 (2)
2)────────── \ ────────────────
153.Merch. Inv. 90.000
100. Capital 90.000

───────── -----\──────────────
3) Sold 40.000 TL merchandise inventory for 50.000 TL in cash.
100.Cash
(1) 500.000 90.000 (2)
(3) 50.000
600.Domestic Sales
50.000 (3)
621.COGS
(3’) 40.000
(2) 90.000 40.000 (3’)
3)────────── \ ────────────────
100.Cash 50.000
───────── -----\──────────────
3’)────────── \ ────────────────
621.COGS 40.000
153.Merch. Inv. 40.000
───────── -----\──────────────
3) Company A paid 25.000 TL for electricity and heating bill of administrative

department.
770.GAE
(4) 25.000
100.Cash
(1) 500.000 90.000 (2)
(3) 50.000 25.000 (4)
3’)────────── \ ────────────────
770. GAE 25.000
100. Cash 25.000
───────── -----\──────────────
Exercise 5:
1) Company A purchased $20.000 at an exchange rate of 18,00 TL/$

100.01. TL Cash
XXXXXXX 360.000 (1)
(2) 360.000
1)────────── \ ────────────────
100.Cash 360.000
*100.02.01. Foreign Currency
100.Cash 360.000
*100.01. TL
───────── -----\─────────────
100 Cash
XXXXXXXXX 360.000 (1)
(1) 360.000
2) Company A sold $5.000 at an exchange rate of 17,00 TL/$
100.01. TL Cash
XXXXXXX 360.000 (1)

(2) 85.000
(1) 360.000 90.000 (2)
646. Exchange Loss
(2) 5.000
2)────────── \ ────────────────
100.Cash 85.000
*100.01. TL cash
656.Exchange Loss 5.000
100. Cash 90.000
───────── -----\──────────────
Exercise 6:
4) Sold 50.000 TL merchandise inventory for 75.000 TL and received a check

from the customer.
101.Checks Received
(1) 75.000
600.Domestic Sales
75.000 (1)
621.COGS
(1’) 50.000
XXXXXX 50.000 (1’)
1)────────── \ ────────────────
───────── -----\──────────────
1’)────────── \ ────────────────
621.COGS 50.000
153.Merch. Inv. 50.000
───────── -----\──────────────
5) Customer check is cashed via bank the next day.
102. Banks
(2) 75.000
101.Checks Received
(1) 75.000 75.000 (2)
2)────────── \ ────────────────
102.Banks 75.000
───────── -----\──────────────
Exercise 7:
Company A paid 100.000 TL for merchandise inventory purchase and wire

transferred the amount to the seller:
100.000
102.Banks
XXXXXXX 100.000
────────── \ ────────────────
153.Merch. Inv. 100.000
102. Banks 100.000
───────── -----\──────────────
Exercise 8:
1) Merchandise Inventory is purchased, and a check is signed for 80.000 TL.
(1) 80.000
103. Checks Issued to Others
80.000 (1)
1)────────── \ ────────────────
153.Merch. Inv. 80.000
───────── -----\──────────────
2) The check is cashed by the customer via bank.
103.Checks Issued to Others
(2) 80.000 80.000 (1)
102. Banks
XXXXXXXX 80.000 (2)
2)────────── \ ────────────────
102. Banks 80.000
───────── -----\──────────────
Exercise 9:
(1) 10.000
100.Cash
XXXXXXXX 10.000 (1)
1)────────── \ ────────────────
100. Cash 10.000
───────── -----\──────────────
2) 7.000 TL supplies have been used.
770.GAE
(2) 7.000
108.OMA
(1) 10.000 7.000 (2)
2)────────── \ ────────────────
770.GAE 7.000
108. OMA 7.000
───────── -----\──────────────
Exercise 10:
1) 1.500.000 TL worth merchandise is sold for 1.800.000 TL to abroad on
FOB. The money will be received upon receival, and acceptance of the
merchandise sold.
108.OMA
(1) 1.800.000
601.International Sales
1.800.000 (1)
621.COGS
(1’) 1.500.000
XXXXXXXX 1.500.000 (1’)
1)────────── \ ────────────────
108.OMA 1.800.000
601.International Sales 1.800.000
───────── -----\──────────────
1’)────────── \ ────────────────
621.COGS 1.500.000
153.Merch. Inv. 1.500.000
───────── -----\──────────────
2) The merchandise sold is received and accepted by the customer.
102.Banks
(2) 1.800.000
108.OMA
(1) 1.800.000 1.800.000 (2)
2)────────── \ ────────────────
102.Banks 1.800.000
108.OMA 1.800.000
───────── -----\──────────────
Exercise 12:
1) An affiliated Company declared dividend payment on December 31, 2022

that is payable on March 31, 2023. Our share is 1.000.000 TL.
108.OMA
(1) 1.000.000
640.Dividends Income from Affiliates
1.000.000 (1)
1)────Dec 31, 2022────────────────
108.OMA 1.000.000
640.Div. Inc. from. Affl. 1.000.000
───────── -----\──────────────
2) Dividend payments are made by the affiliates.
102.Banks
(2) 1.000.000
108.OMA
(1) 1.000.000 1.000.000 (2)
1)─────March 31, 2023────────────────
102.Banks 1.000.000
108.OMA 1.000.000
───────── -----\──────────────

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10. Cash and Cash Equivalents (Monetary Assets)(hazır değerler)

100. Cash (petty cash) (küçük, önemsiz para)

101. Checks received (alınan çekler)

103. Checks Issued to Others (-) (başkalarına verilen çekler)

108. Other Monetary Assets (diğer parasal varlıklar)

All cash transactions of a company are recorded to 100. Cash Account.

1) Company A is founded with 100.000 TL cash.

500. Capital 100.000

2) Company A paid 5.000 TL for merchandise inventory purchase:

153. Merchandise Inventory

(1) 100.000 5.000 (2)

153.Merch. Inv. 5.000

100. Cash 5.000

(1) 100.000 5.000 (2)

600. Domestic Sales

(2) 5.000 3.000 (3’)

600.Domestic Sales 4.000

153.Merch. Inv. 3.000

(1) 100.000 5.000 (2)

(3) 4.000 6.000 (4)

770. GAE 6.000

100. Cash 6.000

100.02. Foreign Currency Cash

100.02.01. USA Dollar

100.02.03. Japanese Yen

1) Company A purchased $1.000 at an exchange rate of 19,00 TL/$

XXXXXXX 19.000 (1)

100.02.01. Foreign Currency Cash

*100.02.01. Foreign Currency

(1) 19.000 19.000 (1)

XXXXXXX 19.000 (1)

100.02.01. Foreign Currency Cash

(2) 19.000 5.700 (2)

646. Exchange Profit

100. Cash 5.700

*100.02.01 Foreign Curr.

646. Exchange Profit 300

(1) 19.000 19.000 (1)

(2) 6.000 5.700 (2)

646. Exhange Profit

3) Company A sold $300 at an exchange rate of 18,00 TL/$

XXXXXXX 19.000 (1)

100.02.01. Foreign Currency Cash

(2) 19.000 5.700 (3)

656. Exchange Loss

656.Exchange Loss 300

100. Cash 5.700

*100.02.01 Foreign Curr.

(1) 19.000 19.000 (1)

(3) 5.400 5.700 (3)

646. Exhange Loss

101. Checks Received

1) Sold 5.000 TL merchandise inventory for 7.000 TL and received a check

XXXXXX 5.000 (1’)

101.Checks Received 7.000

600.Domestic Sales 7.000

153.Merch. Inv. 5.000

(1) 7.000 7.000 (2)

100. Cash 7.000

101. Checks Received 7.000

Refers to a bank account of company’s name/title.

1) Company A is founded with 1.000.000 TL cash deposited to a bank account