Swan Ltd Journal Entries Flashcards
Closing Inventory Valued at 225000
DR INVENTORY increase asset
CR COS decrease expense
being closing inventory for the end of the year
Debenture Intrest Should Be Accrued
DR Finance Costs increase expense
CR Financial Liabilities increase liability
being debenture intrest due
Land was purchased several years ago when the company moved premesis. at the year end, the land was valued at its fair value of 1,750,000 by Super Surveyors. The Directors wish to reincorporate this in to the financial statements
DR PPE Land increase asset
CR REALUATION GAIN increase income
being revaluation gain on land
Current Year Corporation Tax is estimated at 200,000
DR TAX 200,000 increase expense
CR TAX PAYABLE 200,000 increase liability
current year tax payable
DR TAX PAYABLE decrease liability
CR TAX decrease expense
adustment for last years over provision
deferred tax should be increased by 50,000
DR TAX increase expense
CR Deffered TAX
increase in deffered tax provision
Depreciation for the year needs to be provided on the basis of: Buildings 50 years SL 10%Admin 20%Distrib 70%COS
Plant and equipment 20% RB
100%COS
DR Admin Expenses increase expense DR Distribution Costs increase expense DR COS increase expense CR Buildings ACC DEP decrease Asset CR Pland and Equipment decrease asset
The allowance for irrecoverable debts should be adjusted to 3% of trade receivables.
DR Allowance for Irrecovable Debts increase asset
CR Admin Expense Decrease Expense
A government grant of £60,000 for capital expenditure on plant and equipment
is due to be received.
DR ACCRUED INCOME
CR DEFFERED INCOME
Being Goernment Grant Recievable
DR DEFFERED INCOME decrease liability
CR COS decrease expense
transfer of governent grant over useful life of asset
A customer of Swan Ltd has lodged a legal claim for damages of £35,000 due to
faulty products. It is probable the company will have to pay this in approximately
two years time.
DR COS increase expense
CR PROVISIONS increase liability
being provision for damages
trade receivable calculation
trade receivables
allowance for irrecovable debt
prepayments
accrued income
trade and other payables calculation
trade payables
accruals
