(1) Issue of 120,000 ordinary shares DR Cash/Bank , EUR CR Issued Capital , EUR

Transcription

1 Bookkeeping Entries for SUNNY AG in 20X1 (1) Issue of 120,000 ordinary shares R ash/bank , EUR R Issued apital , EUR (2) Taking a bank loan R ash/bank , EUR R Interest Bearing Liabilities , EUR (3) Acquisition of property, plant, and equipment R Property, Plant, and Equipment... 3,166, EUR R VAT , EUR R ash/bank... 3,299, EUR R Accounts Payables , EUR (4) epreciation on property, plant, and equipment R epreciation , EUR R Accumulated epreciation , EUR (5) Purchase of materials R Inventory (RM)... 3,000, EUR R VAT , EUR R ash/bank... 2,160, EUR R Accounts Payables... 1,440, EUR (6) Payment for other expenses (not VAT relevant) R Other Expenses... 4,285, EUR R ash/bank... 4,285, EUR (7) Revenue earned R ash/bank... 9,018, EUR R Accounts Receivables... 1,002, EUR R VAT... 1,670, EUR R Sales... 8,350, EUR 1

2 (8) Interest on the bank loan R Interest... 18, EUR R ash/bank... 18, EUR (9) Pay off of the bank loan R Interest Bearing Liabilities... R ash/bank... 5, EUR 5, EUR (Note, the liability separation of long-term and short term liabilities is only considered in chapter 6 of the text book Bilanzen.) Observe SUNNY AG s accounts below: Property, Plant, and Equipment Accumulated depreciation (3) 3,166, c/d 3,166, c/d 214, (4) 214, b/d 3,166, b/d 214, Inventories (raw materials) Accounts receivables (5) 3,000, c/d 3,000, (7) 1,002, c/d 1,002, b/d 3,000, P&L 3,000, b/d 1,002, ash/bank (1) 600, (3) 3,299, (2) 300, (5) 2,160, (7) 9,018, (6) 4,285, (8) 18, (9) 5, c/d 149, ,918, ,918, b/d 149, Issued capital Earnings reserves c/d 600, (1) 600, R/E 29, b/d 600, c/d 304, R/E 275, , , b/d 304, Exhibit 1: SUNNY AG s accounts 2

3 Retained earnings (R/E) EarnRes 29, P&L 580, EarnRes 275, SH4 275, , , Interest bearing liabilities Accounts payables (9) 5, (2) 300, (3) 500, c/d 294, c/d 1,940, (5) 1,440, , , ,940, ,940, b/d 294, b/d 1,940, Value added tax Shareholder for dividend (3) 633, (7) 1,670, c/d 275, R/E 275, (5) 600, b/d 275, c/d 436, ,670, ,670, b/d 436, Income tax liabilities c/d 251, P&L 251, b/d 251, epreciation Other expenses (4) 214, c/d 214, (6) 4,285, c/d 4,285, b/d 214, P&L 214, b/d 4,285, P&L 4,285, Interest Sales (8) 18, c/d 18, c/d 8,350, (7) 8,350, b/d 18, P&L 18, P&L 8,350, b/d 8,350, Profit and Loss RM Inv 3,000, Sales 8,350, P&L 4,285, epr 214, Interest 18, EBT 831, ,350, ,350, ITL 251, b/d 831, R/E 580, , , Exhibit 1: SUNNY AG s accounts (continued) 3

4 SUNNY AG prepared the financial statements via a trial balance. Observe the trial balance and the adjusted trial balance below: TRIAL BALANE as at X1 Account ebit entries redit entries Property, Plant, and Equipment 3,166, Accumulated epreciation 214, Inventory (Raw Materials) 3,000, Accounts Receivables 1,002, ash/bank 149, Issued apital 600, Interest Bearing Liabilities 294, Accounts Payables 1,940, Value Added Tax 436, epreciation 214, Interest 18, Other Expenses 4,285, Sales 8,350, Total: 11,835, ,835, Exhibit 2: SUNNY AG s trial balance AJUSTE TRIAL BALANE as at X1 Account ebit entries redit entries Property, Plant, and Equipment 3,166, Accumulated epreciation 214, Inventory (Raw Materials) 0.00 Accounts Receivables 1,002, ash/bank 149, Issued apital 600, Interest Bearing Liabilities 294, Accounts Payables 1,940, Value Added Tax 436, epreciation Interest Other Expenses Sales Shareholders for ividend 275, Earnings Reserves 304, Income Tax Liabilities 251, Total: 4,317, ,317, Exhibit 3: SUNNY AG s adjusted trial balance 4

5 The financial statements for SUNNY AG as at X1 follow: STATEMENT of FINANIAL POSITION as at X1 A, L Non-current assets [EUR] Owners' capital [EUR] P, P, E 2,952, Share capital 600, Intangibles Reserves 304, Financial assets R/E 0.00 urrent assets Liabilities Inventory Interest bear liab 294, A/R 1,002, A/P 2,652, Prepaid expenses Provisions ash/bank 149, Tax liabilities 251, ,103, ,103, Exhibit 4: SUNNY AG s statement of financial position STATEMENT of OMPREHENSIVE INOME for the year ended X1 [EUR] Revenue 8,350, Other income 8,350, Materials 3,000, Labour epreciation 214, Other expenses 4,285, Earnings before int and taxes (EBIT) 850, Interest 18, Earnings before taxes (EBT) 831, Income tax expenses 251, eferred taxes Earnings after taxes (EAT) 580, to reserves ( 150 AktG) 29, to other earnings reserves 275, to shareholders 275, carried forward to next period 0.00 Exhibit 5: SUNNY AG s statement of financial position 5

6 STATEMENT of ASH FLOWS for the period ended X1 ash flow from operating acitivities Materials bought (2,160,000.00) Sales 9,018, Other Expenses (4,285,200.00) ash flow from investing activities Investments (3,299,200.00) ash flow from financing activities Share issue 600, Bank loan received 300, Interest (18,900.00) Pay-off (5,100.00) 2,572, (3,299,200.00) 876, , Exhibit 6: SUNNY AG s statement of cash flows STATEMENT of HANGES in EQUITY as at X1 Share capital Reserves R/E total as at X1 600, , Profit 20X1 580, , ividend 20X1 (275,915.23) (275,915.23) Reserves 304, (304,958.94) 0.00 as at X1 600, , , Exhibit 7: SUNNY AG s statement of changes in equity Additionally, there is a register of non-current assets for SUNNY AG available: 6

7 REGISTER of NON-URRENT ASSETS as at X1 Asset ost of acquisition Acc. depr. Acc. impairm. losses arrying amount 1100 (Management Offices) 50, (5,000.00) , (Stockroom) 100, (10,000.00) , (Office Building) 2,500, (100,000.00) ,400, (Solar Equipment) 240, (30,000.00) , (Assembling Tools) 56, (14,000.00) , (onfiguration evices) 60, (15,000.00) , (Service Equipment) 160, (40,000.00) , ,952, Exhibit 8: SUNNY AG s register of non-current assets 7

8 Bookkeeping Entries for 20X2 Along international bookkeeping conventions real accounts will be continued. Observe the bookkeeping entries for SUNNY AG below: (A) Payment of income taxes R Income Tax Liabilities , EUR R ash/bank , EUR (B) Payment for output VAT (amount set off) R VAT , EUR R ash/bank , EUR () Payment for dividend to the shareholders R Shareholder for ividend , EUR R ash/bank , EUR () Payment the outstanding bill for the acquisition of property, plant, and equipment R Accounts Payables , EUR R ash/bank , EUR (E) Payment of the outstanding bill for material suppliers R Accounts Payables... 1,440, EUR R ash/bank... 1,440, EUR (F) Receiving outstanding payments from customers R ash/bank... 1,002, EUR R Accounts Receivables... 1,002, EUR (G) epreciation on property, plant, and equipment R epreciation , EUR R Accumulated epreciation , EUR (H) Purchase of materials 8

9 R Inventory (RM)... 3,000, EUR R VAT , EUR R ash/bank... 2,160, EUR R Accounts Payables... 1,440, EUR (I) Payment for other expenses (not VAT relevant) R Other Expenses... 4,285, EUR R ash/bank... 4,285, EUR (J) Revenue earned R ash/bank... 9,018, EUR R Accounts Receivables... 1,002, EUR R VAT... 1,670, EUR R Sales... 8,350, EUR (K) Interest on the bank loan R Interest... 18, EUR R ash/bank... 18, EUR (L) Pay off of the bank loan R Interest Bearing Liabilities... R ash/bank... 5, EUR 5, EUR Observe the accounts below as at X2 after the appropriation of profit: Property, Plant, and Equipment Accumulated depreciation (3) 3,166, c/d 3,166, c/d 214, (4) 214, b/d 3,166, b/d 214, c/d 428, (G) 214, , , b/d 428, Exhibit 9: SUNNY AG s accounts 9

10 Inventories (raw materials) Accounts receivables (5) 3,000, c/d 3,000, (7) 1,002, c/d 1,002, b/d 3,000, P&L 3,000, b/d 1,002, (F) 1,002, (H) 3,000, c/d 3,000, (J) 1,002, c/d 1,002, b/d 3,000, P&L 3,000, ,004, ,004, b/d 1,002, ash/bank (1) 600, (3) 3,299, (2) 300, (5) 2,160, (7) 9,018, (6) 4,285, (8) 18, (9) 5, c/d 149, ,918, ,918, b/d 149, (A) 251, (F) 1,002, (B) 436, (J) 9,018, () 275, () 500, (E) 1,440, (H) 2,160, (I) 4,285, (K) 18, (L) 5, c/d 796, ,169, ,169, b/d 796, Issued capital Earnings reserves c/d 600, (1) 600, R/E 29, b/d 600, c/d 304, R/E 275, , , b/d 304, R/E 29, c/d 610, R/E 276, , , b/d 610, Retained earnings (R/E) EarnRes 29, P&L 580, EarnRes 275, SH4 275, , , EarnRes 29, P&L 581, EarnRes 276, SH4 276, , , Exhibit 9: SUNNY AG s accounts (continued) 10

11 Interest bearing liabilities Accounts payables (9) 5, (2) 300, (3) 500, c/d 294, c/d 1,940, (5) 1,440, , , ,940, ,940, (L) 5, b/d 294, () 500, b/d 1,940, c/d 289, (E) 1,440, (H) 1,440, , , c/d 1,440, b/d 289, ,380, ,380, b/d 1,440, Value added tax Shareholder for dividend (3) 633, (7) 1,670, c/d 275, R/E 275, (5) 600, () 275, b/d 275, c/d 436, c/d 276, R/E 276, ,670, ,670, , , (B) 436, b/d 436, b/d 276, (H) 600, (J) 1,670, c/d 1,070, ,106, ,106, b/d 1,070, Income tax liabilities c/d 251, P&L 251, (A) 251, b/d 251, c/d 251, P&L 251, , , b/d 251, epreciation Other expenses (G) 214, c/d 214, (I) 4,285, c/d 4,285, b/d 214, P&L 214, b/d 4,285, P&L 4,285, Interest Sales (K) 18, c/d 18, c/d 8,350, (J) 8,350, b/d 18, P&L 18, P&L 8,350, b/d 8,350, Profit and Loss RM Inv 3,000, Sales 8,350, P&L 4,285, epr 214, Interest 18, EBT 832, ,350, ,350, ITL 251, b/d 832, R/E 581, , , Exhibit 9: SUNNY AG s accounts (continued) 11

12 See SUNNY AG s trail balance before and after adjustments below: TRIAL BALANE as at X2 Account ebit entries redit entries Property, Plant, and Equipment 3,166, Accumulated epreciation 428, Inventory (Raw Materials) 3,000, Accounts Receivables 1,002, ash/bank 796, Issued apital 600, Interest Bearing Liabilities 289, Accounts Payables 1,440, Value Added Tax 1,070, epreciation 214, Interest 18, Other Expenses 4,285, Sales 8,350, Earnings Reserves 304, Total: 12,482, ,482, Exhibit 10: SUNNY AG s trial balance AJUSTE TRIAL BALANE as at X2 Account ebit entries redit entries Property, Plant, and Equipment 3,166, Accumulated epreciation 428, Inventory (Raw Materials) 0.00 Accounts Receivables 1,002, ash/bank 796, Issued apital 600, Interest Bearing Liabilities 289, Accounts Payables 1,440, Value Added Tax 1,070, epreciation Interest Other Expenses Sales Earnings Reserves 610, Retained Earnings 0.00 Income Tax Liabilities 251, Shareholder for ividend 276, Total: 4,964, ,964, Exhibit 11: SUNNY AG s adjusted trial balance 12

13 The financial statements for SUNNY AG follow: STATEMENT of FINANIAL POSITION as at X2 A, L Non-current assets [EUR] Owners' capital [EUR] P, P, E 2,738, Share capital 600, Intangibles Reserves 610, Financial assets R/E 0.00 urrent assets Liabilities Inventory Interest bear liab 289, A/R 1,002, A/P 2,786, Prepaid expenses Provisions ash/bank 796, Tax liabilities 251, ,536, ,536, Exhibit 12: SUNNY AG s statement of financial position STATEMENT of OMPREHENSIVE INOME for the year ended X1 [EUR] Revenue 8,350, Other income 8,350, Materials 3,000, Labour epreciation 214, Other expenses 4,285, Earnings before int and taxes (EBIT) 850, Interest 18, Earnings before taxes (EBT) 832, Income tax expenses 251, eferred taxes Earnings after taxes (EAT) 581, to reserves ( 150 AktG) 29, to other earnings reserves 275, to shareholders 275, carried forward to next period 0.00 Exhibit 13: SUNNY AG s statement of comprehensive income 13

14 STATEMENT of ASH FLOWS for the period ended X2 ash flow from operating acitivities Materials bought (3,600,000.00) Sales 10,020, Other Expenses (4,285,200.00) VAT payment (436,800.00) Income tax payment (251,025.83) ash flow from investing activities Investments (500,000.00) ash flow from financing activities Share issue Bank loan received Interest (18,900.00) Pay-off (5,100.00) ividend to shareholders (275,915.23) 1,446, (500,000.00) (299,915.23) 647, Exhibit 14: SUNNY AG s statement of cash flows STATEMENT of HANGES in EQUITY as at X2 Share capital Reserves R/E total as at X2 600, , , Profit 20X2 581, , ividend 20X2 (276,021.80) (276,021.80) Reserves 305, (305,076.72) 0.00 as at X2 600, , ,210, Exhibit 15: SUNNY AG s statement of changes in equity There is a register of non-current assets for SUNNY AG available: 14

15 REGISTER of NON-URRENT ASSETS as at X2 Asset ost of acquisition Acc. depr. Acc. impairm. losses arrying amount 1100 (Management Offices) 50, (10,000.00) , (Stockroom) 100, (20,000.00) , (Office Building) 2,500, (200,000.00) ,300, (Solar Equipment) 240, (60,000.00) , (Assembling Tools) 56, (28,000.00) , (onfiguration evices) 60, (30,000.00) , (Service Equipment) 160, (80,000.00) , ,738, Exhibit 16: SUNNY AG s register of non-current assets (Note, in case you have problems to understand SUNNY AG s bookkeeping entries, study the ebook: Berkau,.; Lecholo, K.S.: Accounting-Intro. München (UVK-Lucius) 2013.) 15