Journal

1 Transaction Distributed dividended at 40% of the profit of 2004 Account Names Cash Retained earnings 2 Made total sale Revenue Cash Account Receivable 3 Acquired raw material Inventories-Raw material Cash Account Payable Account Payable Cash Bad debt Expense Cash Account Receivable NCA-Plant, equipment, machinery Cash Depreciation expense NCA-Plant, equipment, machinery Signed 3-year loan contract Cash Account Payable Interest expense Interest payable Sold the current plant production Cash Account Receivable NCA-Plant, equipment, machinery Depreciation expense Revaluation Reserve NCA-Plant, equipment, machinery 6 Issued shares Loss on Disposal

Paid all AP in 2004 4 Unable to collect 700 thousand Dollars

Acquired a new production plant

Issued shares Cash Account Receivable Owner's Equity Share premium Labour Expense Cash Serverance allowance

Labour Expense

Depreciation Depreciation expense NCA-Plant, equipment, machinery

Current bank loan CL - Bank Loan Cash Interest expense Cash Interest expense Interest expense Interest payable

d e

Non-current bank loan A least contract with Fresh

Cash Interest expense Cash Rental expense Cash

Impairment test Impairment Loss NCA-Plant, equipment, machinery

ii

Revaluation

Investment property Revaluation Gain

iii

Current financial asset was having a market value Change in inventories

Impairment Loss Financial Asset

iv

COGS Inventories

Disposal Asset available for sale Gain on disposal Received money from AR in 2004 Cash Account Receivable

Ledger Accounts
Asset
Cash Debit 2 4 5 5 6 V 21,000 1,050 2,000 1,250 1,250 8,250

7,430

Plant, equipment, machine Debit 3 4,800

20

Investment property ii Debit 700 700 Inventories Debit 3 5,000 100 Financial Asset Debit

Account Receivable Debit 2 5 6 3,000 1,250 1,250

Asset available for sales Debit

200 200 Equity Capital Equity Debit

Revaluation Reserve Debit 5 500 500 Share Premium Debit

Retained Earning Debit 1 800 800 Liabilities Expense Debit 4 5 5 5 6 7 b c c c 700 80 20 400 600 4,000 200 210 160 120

d 6 i iii iv

500 6,000 500 200 4,900 18,590 Revenue Debit

Account Payable Debit 3 3,500

Severance Allowance Debit

Current Bank Loan Debit c 6,000 6,000

Trial Balance Debit Cash 7,430

Plant, equipment, machine Investment Property Inventories Financial Asset Account Receivable Asset available for sales Capital Equity Revaluation Reserve Share Premium Retained Earning Expense Revenue Account Payable Severance Allowance Current Bank Loan

20 700 100

200 500 800 18,590

6,000 34,340

Income Statement Ended 31st December 2005

Revenue COGS Rental Expense Labor Expense Depreciation Expense Gross operating profit Bad debt Expense Interest Expense Gain on disposal Loss on disposal Impairment Loss Revaluation Gain 4,900 6,000 4,000 680 700 1,010 600 700

Net Profit

Balance Sheet Ended 31st December 2005

Non -current assets Plant,equipment, machine Investment property Goodwill Investment in other company other financial assets Current Assets Account receivable Inventories Financial assets cash and cash equivalents Assets available for sales 17,720 6,020 2,700 1,000 5,000 3,000 32,830 5,500 4,000 800 22,530 3,200

Total Assets

53,750

al
Debit Credit 800 800 24,000 21,000 3,000 5,000 3,000 2,000 3,500 3,500 700 1,050 1,750 4,800 4,800 80 80 2,000 2,000 20 20 1,250 1,250 3,600 400 500 400 600

1,250 1,250 2,000 500 4,000 2,400 1,600 200 200 6,000 6,000 210 210 160 120 120 160 500 500 6,000 6,000 500 500 700 700 200 200 4,900 4,900

200 200 8,250 8,250

counts
Credit 800 3,000 3,500 4,800 2,400 6,000 210 160 500 6,000 1 3 3 5 7 c c c d e

machine Credit 80 3,640 400 5 5 5

200 500

b i

Credit

Credit 4,900 iv

Credit 200 200 iii

Credit 1,750 8,250 4,500 4 v

Credit

Credit 2,000 2,000 6

Credit

Credit 500 500 6

Credit

Credit

Credit 24,000 700 200 24,900 2 i v

Credit 2,000 2,000 20 120 640 3 5 5 c

Credit 1,600 1,600 7

Credit

Credit

200 4,500 2,000 500

24,900 640 1,600 34,340

2,400

8,420

200

700

6,310

Equity Capital equity revaluation reserve other reserve revaluation reserve retained earnings Profit of the year 2005 Non-current liabilities Bank Loan Allowance for bad debts Severance allowances Current liabilities Bank Loan Account payable other financial liabilities Total Equity and Liabilities

27,510 12,000 1,000 500 1,000 5,000 6,310 16,600 6,000 4,000 6,600 9,640 4,000 4,140 1,500 53,750

Data shown in thousand Dollars