Basics of Accounting
BSF, Univ. of Economics in Wrocław
Lecturer:
dr Wojciech Hasik
Case no. 13.
X Company is bricks and tails producer, it is also trading company (retail of building tools. Its
accounting policies are as follows:
costs are registered initially by kind and subsequently by function,
materials are registered at standard price and finished goods at standard cost,
merchandise are registered at selling price.
The chosen accounts had the following balances as of April 26
th
200x.:
Cash at bank
78 000,-
Trade receivables
35 000,-
Trade payables
45 000,-
Tangible fixed assets
120 000,-
Accumulated depreciation
20 000,-
Merchandise (at selling price)
15 000,-
Deviation from standard price of merchandise
1 000,-
Depreciation
4 700,-
Social insurance and benefits
5 000,-
Wages
10 000,-
Costs by kind settlement
19 700,-
Costs of basic activity
4 000,-
Direct costs of basic activity.
3 000,-
Costs of transportation dep.
5 000,-
General &administrative costs 7 700,-
I.
perform the accounting entries of below transactions:
1. Bank report:
a) interests from bank deposit
780,-
b) fine for environmental pollution was paid
1 000,-
c) interest on a bank loan was paid
3 000,-
2. A production machine was sold: initial value of 7 500,-, accumulated depreciation of 4 000,-
3. Invoice VAT no. 200/2007 for machine sold to Rokpol Ltd:
a) net value
4 500,-
b) VAT 22%
990,-
c) total
5 490,-
4. A donation was received in the form of computer network - market value of
5 500,-
5. As a result of fire in the warehouse the merchandise were demolished (building tools 4pcs @
2 500,-)
10 000,-
6. Settlement of deviation from selling price of demolished merchandise
…………
7. Finished goods are recognized (10 000 pcs of bricks) at standard of manufacture of 1,-: 10.000,-
8. The time-barred (out dated)receivables were written off
3 500,-
9. The time-barred (out dated) trade payables were written off
18 200,-
10. A compensation for demolished merchandise was received from insurer
6 700,-
11. Costs of transportation department were calculated and cost of 1km was settled (distance of 250km
was made):
a) cost of 1 km
…………
b) for the needs of production department 160 t/km
…………
c) for general needs of the company
90 t/km
…………
12. Indirect costs of manufacture were settled (assigned)
…………
13. The actual cost of manufacture was calculated
…………
14. The deviation from standard cost of manufacture was calculated and assigned
…………
15. Invoice VAT no. 201/2007 for bricks donated to Charitable Foundation (4000pcs @ 1,-):
a) net value
4 000,-
b) VAT 22%
880,-
c) total
4 880,-
16. The donated bricks were freighted to Charitable Foundation
4 000,-
17. The deviation from SC was assigned to the value of donated bricks
…………
