Double Entries

Question 1

Issuing shares at par/nominal value

Answer 1

Dr Bank

Cr Share Capital

Question 2

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

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

Revaluation that causes a loss with no prior increase in value

Answer 7

Dr profit or loss
Dr accumulated depreciation
Cr non-current asset

Question 8

Impairment of an asset

Answer 8

Dr impairment expense

Cr non-current asset

Question 9

Impairment of a previously revalued asset

Answer 9

Dr revaluation surplus
Dr profit or loss
Cr non-current asset

Question 10

Initial corporation tax journal

Answer 10

Dr income tax expense

Cr taxation payable

Question 11

Under provision of corporation tax

Answer 11

Dr income tax expense

Cr taxation payable

Question 12

Over provision of corporation tax

Answer 12

Dr taxation payable

Cr income tax payable

Question 13

Recognition of a lease

Answer 13

Dr right of use asset

Cr lease liability

Question 14

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

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

Elimination of intragroup balances

Answer 20

Dr intragroup payable

Cr intragroup receivables

Question 21

Eliminate cash in transit

Answer 21

1) 
Dr bank
Cr intragroup receivables 
2)
Dr intragroup payable
Cr intragroup receivables

Question 22

Goods in transit

Answer 22

1) 
Dr inventory 
Cr intragroup payable
2)
Dr intragroup payable
Cr intragroup receivables

Question 23

Pup adjustment

Answer 23

Dr retained earnings

Cr inventory

Question 24

Intragroup sales and purchased

Answer 24

Dr sales

Cr cost of sales

Question 25

Pup adjustment

Answer 25

Dr cost of sales

Cr inventory

Question 26

Accrual

Answer 26

Dr expense

Cr accruals

Question 27

Prepayments

Answer 27

Dr prepayments

Cr expense

Question 28

Closing inventory

Answer 28

Dr Cost of sales

Cr Inventories