Double Entries

Question 1

Issuing shares at par/nominal value

Answer 1

Dr Bank
Cr Share Capital

Question 2

Issuing shares at a share premium

Answer 2

Dr Bank
Cr Share Capital
Cr Share Premium

Question 3

Bonus issue of shares

Answer 3

Dr Share premium
Cr Share capital

Question 4

Rights issue of shares

Answer 4

Dr Bank
Cr Share Capital
Cr Share Premium

Question 5

Accounting for revaluation

Answer 5

Dr Asset
Dr Accumulated Depreciation
Cr Revaluation Surplus

Question 6

What is the double entry for a non currents asset revaluation that causes a loss following an upwards revaluation?

Answer 6

Dr Revaluation Surplus
Dr Profit or Loss
Dr Accumulated Depreciation
Cr Non-current Assets

Question 7

When a Non-current asset is revalued at a loss with no prior increase in value, what is the accounting double entry?

Answer 7

Dr Profit or Loss (SPL)
Dr Accumulated Depreciation (SPF)
Cr Non-current Asset (SFP)

Question 8

Iwhen a non current asset is impaired, what is the double entry for the Impairment of an asset?

Answer 8

Dr Impairment Expense (SPL)
Cr Non-current Asset (SPF)

Question 9

What is the double entry for an Impairment of a previously revalued asset?

Answer 9

Dr Revaluation Surplus (SFP)
Dr Profit or Loss (SPL)
Cr Non-current Asset (SFP)

Question 10

Initial corporation tax journal

Answer 10

Dr income tax expense
Cr taxation payable

Question 11

What is the double entry for an under provision of corporation tax?

Answer 11

Dr Tax Expense
Cr Tax liability

Question 12

What is the double entry for an over provision of corporation tax?

Answer 12

Dr tax liability
Cr tax expense

Question 13

What is the double entry for recognition of a long term lease?

Answer 13

Dr Right of Use Asset
Cr Lease liability

Question 14

What is the double entry for the initial measurement of a lease?

Answer 14

Dr Right of use Asset
Cr Lease Liability

Question 15

Payments made before the lease start date

Answer 15

Dr right of use asset
Cr bank

Question 16

What is the double entry for Interest charged on the lease liability?

Answer 16

Dr Finance Cost
Cr Lease Liability

Question 17

Paying off the lease liability

Answer 17

Dr lease liability
Cr bank

Question 18

A change in provision

Answer 18

Dr expense account
Cr provision

Question 19

Impairment

Answer 19

Dr impairment
Cr goodwill

Question 20

What is the double book entry for the elimination of intragroup balances?

Answer 20

Cr Intragroup Receivables
Dr Intragroup Payable

Question 21

What is the double entry for eliminating cash in transit?

Answer 21

1) First entry is to push the transaction to its destination in subsidiary account
Dr Bank
Cr Intragroup Receivables
2) Second entry is to eliminate the balancing figure in the Intercompany accounts
Cr Intragroup Receivables
Dr Intragroup Payables

Question 22

What is the double entry for Goods in transit?

Answer 22

1) Firstly, push the transaction to its destination in the Subsidiary accounts
Dr Inventory
Cr Intragroup payable
2) Secondly, eliminate the intragroup balancing figure.
Cr Intragroup Receivables
Dr Intragroup Payables

Question 23

What is the double entry for a PUP adjustment?

Answer 23

Dr Retained Earnings
Cr Inventory

Question 24

What is the double entry for Intragroup sales and purchased?

Answer 24

Dr sales
Cr Cost of sales

Question 25

Accrual

Answer 25

Dr expense
Cr accruals

Question 26

Prepayments

Answer 26

Dr prepayments
Cr expense

Question 27

Closing inventory

Answer 27

Dr Cost of sales
Cr Inventories