1. Financial Accounting: Additional exercises
drAgataKocia
* based on textbook “Podstawy rachunkowości. Zadania i rozwiązania” by I. Olchowicz,
tom II, wydanie 4-te, Wydawnictwo Difin, 2013. (Sygnatura S-13426).
Task no. 1
The company X on 31.12.200x had: (1) buildings worth 1 200, (2) equipment in stores worth 800,
(3) traded goods worth 300, (4) cash in bank account of 600. The owners of the company put into the
business 1 300 in cash and assets. Retained earnings from previous years equaled 300. The rest of
the assets has been financed by loans from creditors.
Required: Prepare a balance sheet of the Company X on 31.12.200x.
Task no. 2
ASSETS
I. Long-term assets
1. Property, plant and equipment
2. Property, plant and … in progress
3. Materials
II. Short-term assets
1. Traded goods
2. Bank loan
3. Cash
4.Liabilities
TOTAL ASSETS
1 000
300
100
500
200
50
150
2 300
LIABILITES and EQUITY
I. Equity
1. Share capital
2. Additional paid-in capital
3. Receivables
II. Liabilities
1. Reserve capital
2. Net income
TOTAL EQUITY and LIABILITIES
850
500
150
500
300
2 300
Required: Correct the mistakes and prepare corrected Balance Sheet.
Task no. 3
Debit
1. Cash purse
2. Materials
3. Property, plant and equipment
4. Liabilities
5. Traded goods
6. Bank account
7. Receivables from customers
8. Expenses: Materials used
9. Profit and Loss Account
10. Net income
Credit
Receivables from customers
Bank account
Share capital
Bank account
Liabilities to suppliers
Bank loans
Revenue from the sale of products
Materials
Expenses
Share capital
Required: Write out what operating transaction occurred in each situation.
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2. Task no. 4
The company X in the current accounting year had the following results:
-
Revenue from the sales: Traded goods – 5 000; Products – 7 000
Cost of goods sold – 3 500
Cost of products sold – 5 000
Selling costs – 600
Administrative costs –900
Other operating income – 400
Other operating expenses – 200
Interest revenue – 200
Interest expense – 400
Extraordinary losses – 50
Extraordinary gains – 70
Income tax – 700
Required: Prepare Profit and Loss Account of the Company X ending on 31.12.200x.
Task no. 5
ASSETS
I. Long-term assets
1. Intangible assets
2. Property, plant and equipment
2 500
500
II. Short-term assets
1. Materials
2. Finished goods
3. Bank account
4. Cash
TOTAL ASSETS
500
1 000
1 300
200
5 500
LIABILITES and EQUITY
I. Equity
1. Share capital
2. Additional paid-in capital
3. Net income
II. Liabilities
1. Bank loan
2. Liabilities
1 000
500
TOTAL EQUITY and LIABILITIES
5 500
2 000
1 700
300
Required: (1) Based on the Balance Sheet on 31.12.200x open all accounts.
(2) Record the following transactions:
a) Withdrew 200 from the bank account and put the money in cash purse.
b) Bought with cash the office materials; office materials were taken to the warehouse.
c) Some part of net income (200) has been moved to Additional paid-in capital.
d) Paid off the bank loan in the amount of 700 with the cash from bank account.
e) Bought traded goods for 800 with deferred payment.
(3) Prepare ending Balance Sheet on 31.12.200x+1.
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3. Task no. 6
ASSETS
I. Long-term assets
1. Property, plant and equipment
2. Property, plant and … in process
3. Long-term investments
II. Short-term assets
1. Materials
2. Finished goods
3. Traded goods
4. Cash
TOTAL ASSETS
1 000
100
500
50
200
300
600
2 750
LIABILITES and EQUITY
I. Equity
1. Share capital
2 100
II. Liabilities
1. Liabilities
650
TOTAL EQUITY and LIABILITIES
2 750
Required: (1) Based on the Balance Sheet on 31.12.200x open all accounts.
(2) Record the following transactions:
a) Bought traded goods worth 100 for cash.
b) Part of the liabilities (250) were exchanged for supplier’s equity in the company.
c) Bought materials for which payment will be made a month later – 200.
d) Part of the liabilities (150) has been paid off.
e) Materials worth 70 were used in the production process.
f) Sold goods for cash. Revenue amounted to 100.
g) Shareholders increased the nominal share capital by 90. The money were given in the form of
cash.
(3) Prepare ending Balance Sheet on 31.12.200x+1.
Task no. 7
1.
2.
3.
4.
5.
6.
7.
8.
Operating transaction
Debit
Purchased equipment with cash. Equipment taken to active
use – 50.
Calculated and accounted for depreciation on equipment –
30.
Calculated and accounted for employee salaries – 100.
Delivered service to a client – 70.
Shareholders increased the value of equity – 130.
Sold traded goods for cash. Cost of goods sold – 120.
Revenue from the sale of traded goods – 200.
Paid of a liability to a supplier – 90.
Credit
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4. 9.
10.
11.
12.
Received money from a debtor – 70.
Used office materials – 15.
Paid off with a bank transfer rent for use of building – 60.
Paid with cash petty expenses – 20.
Required: (1) Fill in the chart by writing in which accounts should be debited and credited.
(2) The company X on 31.12.200x had: fixed assetsworth 1 000, current assets worth 700, equity
equal to 900 and liabilities equal to 800. Prepare an ending Balance Sheet.
Task no. 8
The company X had the following accounting transactions in the accounting year:
1. Shareholder paid into the company his/her share of equity – 1 000.
2. Shareholder gave a fixed asset worth 2 000 as his/her share of equity.
3a. Revenue from the sale of goods amounted to 400. Payment was deferred.
3b. Cost of goods sold – 300.
4. Received and paid by cash a telephone bill – 20.
5. Revenue from the sale of goods amounted to 130. Payment by cash.
6. Calculated, accounted for and paid employees’ salaries –40.
7. Purchased traded goods worth 60. Payment was deferred.
8. Moved money from cash purse in the amount of 800 to the bank.
Required: (1) Open the accounts with the following opening balances:
-
Property, plant and equipment – 1 000
Materials – 100
Traded goods – 200
Bank account – 500
Cash purse – 200
Share capital – 1 300
Liabilities – 700.
(2) Record accounting operations in the accounting books.
(3) Close all the accounts. Calculate the amount of net income/loss.
(4) Prepare an ending Balance Sheet.
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5. Task no. 9
At the beginning of current accounting year the company Z had the following balances of accounts:
1. Cash purse
3 000
2. Cash in bank account
20 000
3. Receivables
5 000
o From customers
 Customer A
3 000
 Customer B
1 500
o From employees
 Employee M
500
4. Liabilities
o From suppliers
 Supplier X
2 000
 Supplier Z
1 500
During the current accounting year the company Z had the following operating transactions:
1. Customer A paid off a receivable by bank money transfer – 1 000.
2. The company paid off its liability to Supplier Z by bank money transfer – 500.
3. Purchased traded goods from Supplier K – 800.
4. Paid to Employee L a prepayment for business travel expenses – 700.
5. Received an invoice from Supplier Y for transport services – 300.
Required: (1) Open appropriate accounts with opening balances in both General Ledger and
Supporting Ledger.
(2) Record all operating transactions in General Ledger and Supporting Ledger.
(3) Close all the accounts.
(4) Check if the General Ledger account balances are equal to Supporting Ledger account balances.
Task no. 10
The company X in the current accounting year had the following results:
-
Revenue from the sale of products and goods – 1 000
Cost of goods sold – 700
Other operating income – 200
Other operating expenses – 300
Interest revenue – 100
Interest expense – 200
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6. -
Extraordinary losses – 50
Extraordinary gains – 80
Income tax – 30
Required: Prepare Profit and Loss Account of the Company X ending on 31.12.200x.
Task no. 11
The company X had the following accounting transactions in the accounting year:
1. Shareholder paid into the company his/her share of equity – 10 000.
2. Paid from the bank account for rent of the company’s office for the current month – 300.
3. Received income (commission) from the sale of land. Money was received via the bank account –
400.
4. Purchased office supplies worth 100. Payment was deferred.
5. Received income (commission) from the sale of property. Money was received via the bank
account –500.
6. Received an electricity bill and paid it with money from bank account – 40.
7. The shareholder donated a car to the company increasing the value of share capital – 2 000.
8. Calculated, accounted for and paid employees’ salaries – 200.
9. Received income (commission) from the sale of property. Money was received via the bank
account – 350.
10. Paid via bank money transfer for petrol for a company car – 60.
Required: (1) Record accounting operations in the accounting books.
(2) Close all the accounts. Calculate the amount of net income/loss.
(3) Prepare a Profit and Loss Account.
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