School of Economics and Business, University of Sarajevo

Subject: Accounting Task 1. Based on the balance of account of general ledger in joint-stock company AS on 01 January 2011 compile a balance sheet using functionality principle. The balances of account of general ledger on 01 January 2011: 1. Equipment 120.000 2. Land 65.000 3. Prepaid income from rent for 2 years 28.000 4. Inventories of final products (1.500 units per 30 KM) 45.000 5.Small inventory in stock 6.000 6. Accrued, unpaid electricity costs for XII/10 3.000 7. Accrued, unpaid telecommunication services costs for XII/10 1.100 8. Shareholder's premium 13.000 9. Bills of exchange 7.000 10. Liabilities for tax 5.000 11. Inventories of material 81.000 3.000 units mat a x 11 = 33.000 KM 6.000 units mat b x 8 = 48.000 KM 12.Gyro account 330.000 13. Petty cash 3.000 14. Revaluation reserves 16.000 15. Shareholder's equity 280.000 16. Prepaid rental costs for 12 months (for 2011) 15.260 17. Suppliers 30.000 18. Prepaid insurance costs for 8 months (for 2011) 16.000 19. Current investments in securities - shares of joint stock company XX (110 shares per 110 KM) 12.100 20. Liabilities on long-term loans 28.000 21. Construction buildings 150.000 22. Inventories of spare parts 7.000 23.Liabilities towards employees 15.000 24. Short-term receivables based on credit sale 12.740 25. Value correction of equipment 60.000 26. Legal reserves 28.000 27. Buyers 14.000 28. Licenses 26.000 29. Value correction of buildings 45.000 30. Non-allocated profit (Loss from previous years) ?

During January 2011 next business events incurred which have to be entered in day-book and in general ledger. 1

Note: Material have to be recorded at actual acquisition cost. 1. For acquisition of material, advance payment was made to the supplier ALFA in the amount of KM 50.000, plus KM 8.500 of VAT. In accordance with the invoice from supplier have been bought 3.000 units of material a with price 13KM per unit plus 17% of VAT and 4.000 units of material b with pr ice 12 KM per unit plus VAT 17%. The value rebate of 1,2% which is mentioned on the invoice is approved to us. The invoice was paid partly from advance payment and partly with gyro account. We also received invoice for transport of material in the amount of KM 1.100 plus 17% of VAT and invoice for loading and unloading in the amount of KM 900 plus 17% of VAT. The invoices were settled from gyro account. Variable costs of acquisition have to be allocated by the quantity. Material was stored. 2. The additional issue of shares is done. The joint-stock company AS issued and sold 3.000 regular shares at the name, whose nominal value is KM 12 per share. All issued shares were paid in a way that we have got 38.000 KM in cash. 3. We acquired 12 pieces of trade good c of the same type at the price of KM 1.500 per piece. Invoice was received from supplier in the amount of KM 18.000 KM, plus 17% of VAT. Invoice was received from supplier for transport costs in the amount of KM 800, plus 17% of VAT and has been paid with gyro account. Invoice was received for transport insurance in the amount of KM 1.000. Goods were received in the warehouse with 20% of price difference. 4. We have issued into production 4.000 units of material a and 8.000 units of material b. Consumption of material have to b e recorded using FIFO method. 5. We sold to buyer - joint stock company BETA 500 units of final products with 45% of price difference and 17% of VAT and also half of inventories of goods from warehouse plus 17% of VAT. 6. We have given short term financial credit to the legal entity BN in the amount of KM 20.000 with the repayment period of one month with fixed interest of KM 200. 7. We have bought another company for KM 30.000. In bookkeeping records that company had a building which we estimated KM 35.000, prepaid income from rent for 4 months KM 3.000, liabilities for issued bills of exchange KM 3.000, inventories of spare parts KM 2.000, liabilities for profit tax KM 2.000, buyers KM 7.000 and liabilities for long term credit KM 12.000. 8. The invoice for interest related to short term financial credit KM 200 plus 17% of VAT has been issued. Upon expiry of set date legal entity BN repaid credit o f KM 20.000 and also paid the interest together with VAT in the amount of KM 234. 9. We have bought small inventory for KM 3.000 and spare parts for KM 4.000 from the same supplier plus 17% of VAT. The invoice for transport is KM 450 plus 17% of VAT and it is paid from gyro account. Small inventory and spare parts are put in the warehouse. After that half of total stock of small inventory has been issued for use. Record write-off of small inventory using 50% indirect method. The spare parts that have been acquired used for fixing the machine. It was done by another company and they issued us the invoice KM 350 plus 17% of VAT. Liabilities towards supplier for small inventory and spare parts has been paid by bills of exchange (conecction with the balance sheet). 10. We have issued into production 1.000 units of material a and same amount of material b. 11. It has been sold and collected 95 shares of joint stock company (JSC) XX with price KM 105 per share and for the same amount of money we bought 100 shares of joint stock company YY. 12. The contract was concluded with contractors (Construction Company) about the construction of business building on our land. In accordance with the contract, contractor received advance payment in the amount of KM 9.360. Invoice was received from contractor for advance payment in the amount of KM 8.000 plus 17% of VAT. First provisional transaction was received in the amount of KM 15.000 plus 17% of VAT and it were settled partly from advance payment and partly from gyro account (advance payment was calculated and input tax was cancelled). 13. For the purpose of advertising we distributed 13 units of final products for future buyers, for which we have to calculate 17% of VAT. The annual advertisement of KM 200 plus 17% of VAT has been paid to the local TV station. 14. Record costs of salaries if gross salaries are KM 78.570 (from that amount, KM 38.000 refers to the management, sale and administration, the rest refers to production), taxes and contributions on salaries KM 32.070. All liabilities towards employees has been paid (take into account unpaid liabilities from previous period) from petty cash and taxes and contributions on salaries from gyro account. 15. The second provisional transaction was received for constructing the business building in the amount of KM 25.000 plus 17% of VAT which is paid from approved long term loan. 16. All liabilities towards supplier were settled from gyro account. In case of need take a short term loan.

17. Calculate depreciation costs of equipment using functional method if we know that normal capacity of the equipment is 120.000 units and during January 2011 it was produced 1.000 units of product X. Depreciation of buildings calculate with flat rate on annual level of 1,5%. Annual rate for intangible assets is 10 %. 18. Inventory of material has been done and the actual balance is: 900 units of material a and 1.050 units of material b. Possible shortage record at the burden of legal entity with calculation of 17% of VAT. Permitted outage is 1,5%. 19. We received invoice for electricity (month XII/10) in the amount of KM 3.200 plus 17% of VAT so for current accounting period the calculated costs for electricity are KM 3.200. We also received invoice for telecommunication services (month XII/10) in the amount of KM 900 plus 17% of VAT and invoice for current accounting period ni the amount of KM 900 plus 17% of VAT. 20. Record revenues and expenses from the accounts of accrual for current period. 21. Carry out the calculation of production (taking into account that non-production costs, related to management, sale and administration for current month are KM 45.000) and storage of final products. It is produced 1.000 units of product X in total. The production price of the product is being calculated using pure divisional calculation. 50% of final products has been sold with 30% of price difference plus 17% of VAT. Balance all accounts related to VAT. 22. Compile trial balance. 23. Calculate financial result. Profit tax is 10%.

Balance sheet a joint-stock company AS on the day 01.01.2011. year Assets Description I) FIXED ASSETS Licenses Land Construction buildings Value correction of buildings Equipment Value correction of equipment II) CURRENT ASSETS 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Inventories of material Small inventory in stock Inventories of spare parts Inventories of final products Buyers Short-term receivables based on credit sale Bills of exchange Current investments in securities shares Prepaid insurance costs for 8 months Prepaid rental costs for 12 months Gyro account Petty cash 81.000 6.000 7.000 45.000 14.000 12.740 7.000 12.100 16.000 15.260 330.000 3.000 6. 7. Liabilities (Equity and Liabilities) Description Amount I) EQUITY Shareholder's equity Shareholder's premium Revaluation reserves Legal reserves Non-allocated profit II) LIABILITIES LONG-TERM LIABILITIES Liabilities on long-term loans Prepaid income from rent for 2 years CURRENT LIABILITIES Suppliers Liabilities towards employees Liabilities for tax Accrued, unpaid electricity costs for XII/10 Accrued, unpaid telecommunication services costs for XII/10

No.

Amount

Amount

No.

Amount

1. 2. 3. 4. 5. 6.

26.000 65.000 150.000 (45.000) 120.000 (60.000)

1. 2. 3. 4. 5. 256.000

280.000 13.000 16.000 28.000 358.000

695.000

28.000 28.000

56.000

8. 9. 10. 11. 12.

30.000 15.000 5.000 3.000 1.100 54.100

549.100

TOTAL ASSETS

XXX

805.100

TOTAL LIABILITIES (Equity

and Liabilities)

XXX

805.100 4

Book entry in day-book:

Day book for January 2010. No Date Description Call Page No. 1. TURNOVER PAYABLE RECEIVABLE

Ac. ASSETS Ac. LIABILITIES

For opening balance in line with balance sheet

910.100 910.100 50.000 8.500 58.500 85.956 14.612 100.568 100.568 8.500 50.000 42.068 1.100 187 1.287 900 153 1.053 2.340 2.340 87.956 87.956 38.000 36.000 2.000 18.000 3.060 21.060 1 2 1.321.432 1.321.432 1.321.432 1.321.432

1a.

1b.

1c.

1d.

1e.

1f.

Ac. Advances for acquisition of material Ac. Receivable for input tax on given advances Ac. Gyro account Recording of advance payment Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers For received invoice for material Ac. Suppliers Ac. Receivable for input tax on given advances Ac. Advances for acquisition of material Ac. Gyro account Payment of liabilities towards suppliers Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers For received invoice for transport services Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers For received invoice for unloading Ac. Suppliers Ac. Gyro account
For settlement of invoices for transport and unloading

1g.

2.

3a.

Ac. Inventories of material Ac. Calculation of acquisition costs Storage of acquired material Ac. Gyro account Ac. Shareholder's equity Ac. Shareholder's premium For sale and collection of shares Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers Invoice for supplier for goods Sum of page Transfer from previous page Transfer to the following page

3b.

3c.

3d.

3e.

4.

5a.

5b.

5c.

5d.

5e.

6.

Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers Invoice for supplier for transport Ac. Suppliers Ac. Gyro account For settlement of invoices for transport Ac. Calculation of acquisition costs Ac. Suppliers Invoice for supplier for insurance Ac. Goods in warehouse Ac. Calculation of acquisition costs Ac. Calculated price difference Storage of acquired goods Ac.Costs of material (Consumption of material) Ac. Inventories of material For issue material into production Ac. Costs of sold products Ac. Inventories of final products For dispensing product inventories Ac. Buyers Ac. Revenues from sale of products Ac. Liabilities for VAT For sold products Ac. Buyers Ac. Revenues from sale of goods Ac. Liabilities for VAT For sold goods or for selling value of goods Ac. Acquisition costs of sold goods Ac. Goods in warehouse For dispensing the warehouse Ac. Calculated price difference Ac. Acquisition costs of sold goods For realized 50% of price difference Ac. Extended short-term credits (loans) Ac.Gyro account For extended short-term credit Sum of page Transfer from previous page Transfer to the following page

800 136 936 936 936 1.000 1.000 23.760 19.800 3.960 118.413 118.413 15.000 15.000 25.448 21.750 3.698 13.900 11.880 2.020 11.880 11.880 1.980 1.980 20.000 20.000 2 1 3 233.253 1.321.432 1.554.685 233.253 1.321.432 1.554.685

7.

8a.

8b.

9a.

9b.

9c.

9d.

9e.

9f.

9g.

Ac. Construction buildings Ac. Inventories of spare parts Ac. Buyers Ac. Goodwill Ac. Liabilities on long-term loans Ac. Prepaid income from rent for 4 months Ac. Liabilities for tax Ac. Liabilities for issued bills of exchange Ac. Gyro account For buying the company Ac. Receivable for accrued interests and VAT Ac. Revenues from interests Ac. Liabilities for VAT For invoice was issued for the interest Ac. Gyro account Ac. Extended short-term credits (loans) Ac. Receivable for accrued interests and VAT For repaid credit and paid interests with VAT Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers For acquisition small inventory and spare parts Ac. Calculation of acquisition costs Ac. Receivable for input tax Ac. Suppliers Invoice for supplier for transport Ac. Suppliers Ac. Gyro account For settlement of invoices for transport Ac. Small inventory in stock Ac. Inventories of spare parts Ac. Calculation of acquisition costs For storage Ac. Small inventory in use Ac. Small inventory in stock For the issue of 50% inventories Ac. Costs of small inventory Ac. Value correction of small inventory For 50% write-off indirect method Ac. Costs of spare parts Ac. Inventories of spare parts For consumption of spare parts Sum of page Transfer from previous page Transfer to the following page

35.000 2.000 7.000 6.000 12.000 3.000 2.000 3.000 30.000 234 200 34 20.234 20.000 234

7.000 1.190 8.190 450 77 527 527 527 3.194 4.256 7.450 4.597 4.597 2.298 2.298 4.256 4.256 3 2 4 98.313 1.554.685 1.652.998 98.313 1.554.685 1.652.998

9h.

Ac. Costs of services Ac. Receivable for input tax Ac. Suppliers For service repairs Ac. Suppliers Ac. Bills of exchange Ac. Other revenues

350 60 410 8.190 7.000 1.190 25.272 25.272 9.975 475 10.450 9.975 9.975 9.360 9.360 (1.360) 1.360 15.000 2.550 17.550

9i.

10.

11a.

11b.

12a.

12b.

12c.

12d.

13a.

13b.

For settlement of invoices Ac.Costs of material (Consumption of material) Ac. Inventories of material For issue material into production Ac. Gyro account Ac. Expenses/Losses from sale of shares Ac. Current investments in securities - shares For selling of shares Ac. Current investments in securities - shares Ac. Gyro account For buying of shares Ac. Advances for construction buildings Ac. Gyro account For advance payment from own funds Ac. Advances for construction buildings Ac. Receivable for input tax For received invoice for advance payment Ac.Investment in progress Construction buildings Ac. Receivable for input tax Ac. Suppliers For received first provisional situation Ac. Suppliers Ac. Receivable for input tax Ac. Advances for construction buildings Ac. Gyro account For settled first provisional situation Ac. Advertising costs Ac. Liabilities for VAT Ac. Inventories of final products For distribution products Ac. Prepaid advertising costs for 12 months Ac. Receivable for input tax Ac. Gyro account For the paid annual advertising Sum of page Transfer from previous page Transfer to the following page

17.550 (1.360) 8.000 8.190 456 66 390 200 34 234 4 3 5 98.087 1.652.998 1.751.085 98.087 1.652.998 1.751.085

14a.

41b.

14c.

14d.

15a.

15b.

16.

17.

Ac. Costs of employees (production) Ac. Costs of employees (management, sale and administration) Ac. Liabilities towards employees Ac. Liabilities for income tax and contributions on salaries Fro callculated salaries Ac. Petty cash Ac. Provisional gyro account Cash withdrawal and payment in petty cash Ac. Provisional gyro account Ac. Liabilities for income tax and contributions on salaries Ac. Gyro account For settled liabilities Ac. Liabilities towards employees Ac. Petty cash Fro settled liabilities towards employees Ac.Investment in progress Construction buildings Ac. Receivable for input tax Ac. Suppliers For received second provisional situation Ac. Suppliers Ac. Liabilities on long-term loans For settled invoice Ac. Suppliers Ac. Gyro account For settled total liabilities towards suppliers Ac. Depreciation costs
Ac. Value correction of construction buildings Ac. Value correction of equipment Ac. Value correction of licenses

40.570 38.000 46.500 32.070

58.500 58.500 58.500 32.070 90.570

61.500 61.500 25.000 4.250 29.250

29.250 29.250 52.470 52.470 1.405 188 1.000 217 496 889 1.313 72 607 607 5 4 6 374.237 1.751.085 2.125.322 374.237 1.751.085 2.125.322

18a.

18b.

For callculated depreciation Ac. Other expenses Shortages Ac. Costs of material for outage, ullage, defect Ac. Inventories of material Ac. Liabilities for VAT For calculation shortage Ac. Inventories of material Ac. Surpluses Other revenues For calculation surpluses Sum of page Transfer from previous page Transfer to the following page

19a.

19b.

19c.

19d.

20a.

Ac. Accrued, unpaid electricity costs for XII/10 Ac. Receivable for input tax Ac. Other expenses Ac. Suppliers For received invoice for XII/10. Ac. Costs of energy (Consumed energy) Ac. Accrued, unpaid electricity costs for I/11. For calculation costs of energy Ac. Accrued, unpaid telecommunication services costs for XII/10 Ac. Receivable for input tax Ac. Suppliers Ac. Other revenues For received invoice for XII/10. Ac. Costs of telecommunication services Ac. Receivable for input tax Ac. Suppliers For costs of current period Ac. Prepaid income from rent for 2 years Ac. Prepaid income from rent for 4 months Ac. Revenues/Income from rent For accruals (adjustment) of income for accounting period Ac. Insurance costs Ac. Prepaid insurance costs for 8 months For accruals (adjustment) of costs for accounting period Ac. Advertising costs Ac. Prepaid advertising costs for 12 months For accruals (adjustment) of costs for accounting period Ac. Rental costs Ac. Prepaid rental costs for 12 months For accruals (adjustment) of costs for accounting period Ac. Costs of management and sale Ac. Allocation of costs in calculation of business result For transfer costs of management and sale Ac. Production in progress Ac. Allocation of costs for calculation of products Transfer of product costs Sum of page Transfer from previous page Transfer to the following page

3.000 544 200 3.744 3.200 3.200 1.100 153 1.053 200 900 153 1.053 1.167 750 1.917

20b.

2.000 2.000

20c.

17 17

20d.

1.272 1.272

21a.

45.000 45.000

21b.

194.298 194.298

6 5 7

253.754 2.125.322 2.379.076

253.754 2.125.322 2.379.076

10

21c.

21d.

21e.

21f.

23a

23b

23c

Ac.Inventories of final products Ac. Production in progress For the transfer to inventories Ac. Buyers Ac. Revenues from sale of products Ac. Liabilities for VAT For selling products Ac. Costs of sold products Ac. Inventories of final products For dispensing product inventories Ac. Liabilities for VAT Ac. Receivable for input tax Settlement of VAT Ac. Revenues from sale of products Ac. Revenues from sale of goods Ac. Revenues/Income from rent Ac. Surpluses Other revenues Ac. Other revenues Ac. Revenues from interests Ac. Difference of revenues and expenses Transfer of revenues Ac. Difference of revenues and expenses Ac. Costs of sold products Ac. Acquisition costs of sold goods Ac. Costs of management and sale Ac. Other expenses Shortages Ac. Expenses/Losses from sale of shares Ac. Other expenses Transfer of expenses Ac. Loss Ac. Difference of revenues and expenses Transfer of difference of expenses over revenues Sum of page Transfer from previous page Transfer to the following page

194.298 194.298 147.744 126.294 21.450 97.149 97.149 27.159 27.159 148.044 11.880 1.917 607 1.390 200 164.038

168.220 112.149 9.900 45.000 496 475 200 4.182 4.182

7 6 8

802.790 2.379.076 3.181.866

802.790 2.379.076 3.181.866

11

Book entry in the accounts of general ledger: D Licenses Bal 26.000 26.000 C D Equipment Bal 120.000 120.000 Advances for construction D buildings C (12a) 9.360 8.000 (12d) (12c) (1.360) 8.000 8.000 C D Value correction of equipment 60.000 Bal 1.000 (17) 61.000 C

Construction D buildings Bal 150.000 (7) 35.000 185.000

Goodwill (7) 6.000 6.000

Land Bal 65.000 65.000 Value correction of licenses 217 (17) 217

Value correction of buildings C 45.000 Bal 188 (17) 45.188

Investment in progress Construction D buildings (12c) 15.000 (15a) 25.000 40.000

Inventories of material C Bal 81.000 118.413 (4) (1g) 87.956 25.272 (10) (18b) 607 1.313 (18a) 169.563 144.998

Small inventory in stock Bal 6.000 4.597 (9e) (19d) 3.194 9.194 4.597 Calculated price difference (5e) 1.980 3.960 (3e)

Inventories of spare parts Bal 7.000 4.256 (9g) (7) 2.000 (9d) 4.256 13.256 4.256

Goods in D warehouse C (3e) 23.760 11.880(5d)

Inventories of final D products C Bal 45.000 15.000 (5a) (21c)194.298 390 (13a) 97.149 (21e) 239.298 112.539

23.760 11.880

1.980 3.960

12

Buyers Bal 14.000 (5b) 25.448 (5c) 13.900 (7) 7.000 (21d) 147.744 208.092

Short-term receivables based on credit sale Bal 12.740

Current investments D in securities - shares Bal 12.100 10.450 (11a) (11b) 9.975

12.740 D Gyro account C Bal 330.000 58.500 (1a) (2) 38.000 42.068 (1c) (8b) 20.234 2.340 (1f) (11a) 9.975 936 (3c) 20.000 (6) 30.000 (7) 527 (9c) 9.975 (11b) 9.360 (12a) 8.190 (12d) 234 (13b) 90.570 (14c) 52.470 (16) 398.209 325.170 Advances for acquisition of material C (1a) 50.000 50.000 (1d) 50.000 50.000 Production in D progress C (21b) 194.298 194.298 (21c) 194.298 194.298 Prepaid advertising costs for 12 months (13b) 200 17 (20d) 200 17 D

22.075 10.450 Petty cash C Bal 3.000 61.500 (14d) (14b) 58.500

Bills of exchange C Bal 7.000 7.000 (9i)

7.000 7.000 Calculation of acquisition costs D material C (1b) 85.956 87.956 (1g) (1d) 1.100 (1e) 900 87.956 87.956 Small inventory in use (9e) 4.597 4.597

61.500 61.500 Calculation of acquisition costs D goods (3a) 18.000 19.800 (3e) (3b) 800 (3d) 1.000 19.800 19.800 Value correction of small inventory 2.298 (9f) 2.298

Prepaid insurance costs for 8 D months C Bal 16.000 2.000 (20c) 16.000 2.000

Prepaid rental costs for 12 months Bal 15.260 1.272 (20e) 15.260 1.272

13

Receivable for D input tax C (1b) 14.612 27.159 (21f) (1d) 187 (1e) 153 (3a) 3.060 (3b) 136 (9a) 1.190 (9b) 77 (9h) 60 (12b) 1.360 (12c) 2.550 (12d) (1.360) (13b) 34 (15a) 4.250 (19a) 544 (19c) 153 (19d) 153 27.159 27.159 Receivable for input tax on given D advances C (1a) 8.500 8.500 (1c) 8.500 8.500 Shareholder's equity C 280.000 Bal 36.000 (2) 316.000

Receivable for accrued interests and VAT (8a) 234 234 (8b)

Calculation of D acquisition costs (9a) 7.000 7.450 (9d) (9b) 450

234 234

7.450 7.450

Extended shortterm credits (loans) C (6) 20.000 20.000 (8b) 20.000 20.000 Shareholder's premium C 13.000 Bal 2.000 (2) 15.000 Non-allocated profit C 358.000 Bal 358.000

Provisional gyro D account C (14c) 58.500 58.500 (14b) 58.500 58.500 Revaluation reserves 16.000 Bal 16.000

Legal reserves C 28.000 Bal 28.000

Loss (23c) 4.182 4.182

Prepaid income from rent for 2 D years C (20a) 1.167 28.000 Bal 1.167 28.000

Liabilities on longterm loans C 28.000 Bal 12.000 (7) 29.250 (15c) 69.250

Prepaid income from rent for 4 D months (20b) 750 3.000 (7) 750 3.000

14

Liabilities towards D employees C (14b) 61.500 15.000 Bal 46.500(14a) 61.500 61.500

Accrued, unpaid D electricity costs (19a) 3.000 3.000 Bal 3.200 (19b) 3.000 6.200 Liabilities for income tax and contributions on D salaries C (14b) 32.070 32.070 (14a) 32.070 32.070

Accrued, unpaid telecommunication D services costs C (19c) 1.100 1.100 Bal 1.100 1.100 Liabilities for issued bills of exchange C 3.000 (7)

Liabilities for tax 5.000 Bal 2.000 (7) 7.000

Liabilities for VAT C (21f) 27.159 3.698 (5b) 2.020 (5c) 34 (8a) 66 (13a) 72 (18a) 21.450 (21d)

D Suppliers C (1c) 100.568 30.000 Bal (1f) 2.340 100.568 (1b) (3c)936 1.287 (1d) (9c) 527 1.053 (1e) (9i) 8.190 21.060 (3a) (12d) 17.550 936 (3b) (15c) 29.250 1.000 (3d) (16) 52.470 8.190 (9a) 527 (9b) 410 (19h) 17.550 (12c) 29.250 (15a) 3.744 (19a) 1.053 (19c) 1.053 (19d) 211.831 217.681

3.000 Costs of material (Consumption of D material) (4) 118.413 (10) 25.272 143.685 D Advertising costs (13a) 456 (20d) 17 473 C D

27.159 27.340

Depreciation costs (17) 1.405 1.405 Costs of spare parts (9g) 4.256 4.256

Costs of small D inventory (9f) 2.298 2.298

Costs of services (9h) 350 350 15

Costs of energy (Consumed D energy) (19b) 3.200 3.200

Costs of telecommunication services (19d) 900 900

Insurance costs (20c) 2.000 2.000

Rental costs (20e) 1.272 1.272

Costs of employees D (production) (14a) 40.570 40.570 Costs of material for outage, ullage, defect (18a) 889 889

Costs of employees (management, sale D and administration) (14a) 38.000 38.000

Allocation of costs in calculation of business result C 45.000(21a) 45.000

Allocation of costs for calculation of products C 194.298 (21b) 194.298

Costs of management and D sale C (21a) 45.000 45.000 (23b) 45.000 45.000

Costs of sold products C (15a) 15.000 112.149 (23b) (21e) 97.149 112.149 112.149 Expenses/Losses from sale of shares (11a) 475 475 (23b) 475 475

Acquisition costs of sold goods (5d) 11.880 1.980 (5e) 9.900 (23b) 11.880 11.880 Other expenses Shortages (18a) 496 496 (23b) 496 496

Other expenses C (19a) 200 200 (23b) 200 200

Other revenues C (23a) 1.390 1.190 (9i) 200 (19c) 1.390 1.390 Revenues/Income from rent C (23a) 1.917 1.917 (20b) 1.917 1.917

Revenues from sale of goods C (23a) 11.880 11.880 (5c) 11.880 11.880 Surpluses Other revenues C (23a) 607 607 (18b) 607 607

Revenues from sale D of products C (23a) 148.044 21.750 (5b) 126.294 (21d) 148.044 148.044 Revenues from interests (23a) 200 200 (8a) 200 200

Difference of revenues D and expenses C (23b) 168.220 164.038 (23a) 4.182 (23c) 168.220 168.220

16

Auxiliary operations: 1. Calculation of acquisition of material

3.000 units mat. ''a'' x 13,00 KM/unit = 39.000KM - 468 KM = 38.532 KM + 6.550 KM (VAT) = 45.082 KM 4.000 units mat. ''b'' x 12,00 KM/unit = 48.000KM 576 KM = 47.424 KM + 8.062KM (VAT) = 55.486 KM Allocation of variable costs of acquisition on the basis of quantity: Variable acquisition costs = 2.000 KM

3.000 kom. 4.000 kom. 7.000 kom.

%=

2.000 = 0,2857142 7.000

Variable acquisition costs for mat. ''a'' 3.000 units x 0,285 .............. = 857 KM Variable acquisition costs for mat. ''b'' 4.000 units x 0,285 .............. = 1.143 KM 2.000 KM Actual acquisition cost (Value) for mat a = 38.532 + 857 = 39.389 KM Actual acquisition cost (Value) for mat b = 47.424 + 1.143 = 48.567 KM *actual acquisition price - AAP

39.389 AAP/units ''a'' = 3.000 48.567 AAP/units ''b'' = 4.000 2. Issue of share: 3.000 units x 12 KM/units = 36.000 KM 38.000 KM 2.000 KM Shareholder's premium 3. Acquisition of goods: 12 units x 1.500 KM/unit = 18.000 KM +Variable acquisition costs = 1.800 KM Acquisition value = 19.800 KM +20% Price difference = 3.960 KM Selling price without VAT = 23.760 KM = 12,14175 KM/unit = 13,129666 KM/unit

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5. Sale of final products: 500 units x 30 KM/unit = 15.000 KM +45% Price difference = 6.750 KM Selling price without VAT = 21.750 KM +17% VAT = 3.698 KM Selling price with VAT = 25.448 KM Sale of goods: 23.760 x 50% = +17% VAT = Selling price with VAT =

11.880 KM 2.020 KM 13.900 KM

Calculated price difference 3.960 x 50% = 1.980 KM 9. Small inventory and spare parts: Allocation of variable costs of acquisition on the basis of value: 3.000 KM 4.000 KM % = _450 = 0,0643 7.000 KM 7.000 Variable acquisition costs for small inventory Variable acquisition costs for spare parts 3.000 KM x 0,0643 = 194 KM 4.000 KM x 0,0643 = 256 KM 450 KM

11. Selling price (value) shares XX: 95 units x 105 KM/units = 9.975 KM Carrying amount: 95 units x 110 KM/units = 10.450 KM Expenses/Losses from sale of shares 475 KM Buying of shares YY 100 units x 99,75 KM/units = 9.975 KM

13. Calculation for distribution of final products: 13 kom x 30 KM/kom = 390 KM PDV 17% 66 KM 456 KM 17. Calculation depreciation: Equipment: (1.000 kom/120.000 kom) x 120.000 KM = 1.000 KM Construction buildings: (150.000 KM x 1,5)/1.200 188 KM Licenses: (26.000 KM x 10)/1200 217 KM 18.Calculation Outage: Shortage = 1.313 KM - Permitted outage (59.260x1,5%) = 889 KM Unpermitted outage (above prescribed) = 424 KM +17% VAT = 72 KM Shortage with VAT (other expenses) = 496 KM 18

20. Calculating of revenues and expenses related to accruals: ADI accruals and deferred income Rent (2 years) 28.000 KM / 24 months = 1.167 KM/month Rent (4 months) 3.000 KM / 4 months= 750 KM/month PAI prepayments and accrued income Insurance (8 months) 16.000 KM/8 months = 2.000 KM/months Advertising (12 months) 200 KM/12 months = 17 KM/months Rent (12 months) 15.260 KM/12 months = 1.272 KM/months 21. Pure divisional calculation: Total costs: 239.298 KM - Costs of management, sale and administration: 45.000 KM Costs of production: 194.298 KM Number of units produced 1.000 units Cost per unit of final product = 194.298 KM/1.000 units = 194,298 KM/unit Sale of final products: 194.298 KM x 50% = 97.149 KM + 30% Price difference = 29.145 KM Selling price without VAT = 126.294 KM + 17% VAT = 21.450 KM Selling price with VAT = 147.744 KM FIFO method Sub-ledger account of material a
Date No. 1. 2. 3. 4. 5. 6. Description Openin balance Acquired Consumption 4000 units Consumption 1.000 units Inventory - shortage Input 3.000 3.000 Quantity Output 3.000 1.000 1.000 100 Price Balance 3.000 6.000 3.000 2.000 1.000 900 11 13,1297 11 13,1297 13,1297 13,1297 Payable 33.000 39.389 Value Receivable 33.000 13.130 13.130 1.313 Balance 33.000 72.389 39.389 26.259 13.129 11.816

Sub-ledger account of material b

Date No 1. 2. 3. 4. 5. 6. Description Openin balance Acquired Consumption 8.000 units Consumption 1.000units Inventory - Surpluse Input 6.000 4.000 50 Quantity Output 6.000 2.000 1.000 Price Balance 6.000 10.000 4.000 2.000 1.000 1.050 8 12,1418 8 12,1418 12,1418 12,1418 Value Payable Receivable 48.000 48.567 48.000 24.283 12.142 607 Balance 48.000 96.567 48.567 24.284 12.142 12.749

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22. Company AS Trial balance Description Licenses Construction buildings Equipment Land Goodwill Investment in progress Construction buildings Inventories of material Small inventory in stock Inventories of spare parts Inventories of final products Buyers Short-term receivables based on credit sale Current investments in securities shares Prepaid insurance costs for 7 months Prepaid rental costs for 11 months Gyro account Goods in warehouse Small inventory in use Prepaid advertising costs for 11 months Costs of material (Consumption of material) Costs of spare parts Costs of small inventory Depreciation costs Costs of employees (production) Costs of employees (management, sale and administration) Costs of energy (Consumed energy) Insurance costs Advertising costs Costs of telecommunication services Costs of services Rental costs Costs of material for outage, ullage, defect Costs of sold products Acquisition costs of sold goods Costs of management and sale Other expenses Shortages Expenses/Losses from sale of shares Other expenses Allocation of costs in calculation of Balance payable Balance receivable 26.000 185.000 120.000 65.000 6.000 40.000 24.565 4.597 9.000 126.759 208.092 12.740 11.625 14.000 13.988 73.039 11.880 4.597 183 143.685 4.256 2.298 1.405 40.570 38.000 3.200 2.000 473 900 350 1.272 889 112.149 9.900 45.000 496 475 200 45.000 20

business result Allocation of costs for calculation of products Value correction of licenses Value correction of buildings Value correction of equipment Calculated price difference Value correction of small inventory Suppliers Accrued, unpaid electricity costs Liabilities for issued bills of exchange Liabilities for tax Liabilities for VAT Prepaid income from rent for 3 months Prepaid income from rent for 23 months Liabilities on long-term loans Shareholder's equity Shareholder's premium Revaluation reserves Legal reserves Non-allocated profit Revenues from sale of products Revenues from sale of goods Revenues/Income from rent Surpluses Other revenues Other revenues Revenues from interests

194.298 217 45.188 61.000 1.980 2.298 5.850 3.200 3.000 7.000 181 2.250 26.833 69.250 316.000 15.000 16.000 28.000 358.000 148.044 11.880 1.917 607 200 1.390

Total

1.364.583

1.364.583

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