Flashcards NCEA Level 3 - 3.3 Company Statements - Accounting General Journal Entries

Close provisional tax (underpaid tax)

Dr Taxation Payable

Cr Provisional tax paid

Close provisional tax (overpaid tax)

Dr Taxation Receivable

Cr Provisional Tax Paid

Payment of Provisional tax

Dr Provisional tax paid

Cr Bank

Record Taxation expense

Dr Income Summary

Cr Taxation Payable

Increase in fair value of shares

Dr Shares

Cr Increase in fair value of financial assets

Decrease in fair value of shares

Dr Decrease in fair value of financial assets

Cr Shares

Close off increase in fair value of shares

Dr Increase in fair value of financial assets

Cr Income Summary

Close off decrease in fair value of shares

Dr Income Summary

Cr Decrease in fair value of financial assets

Depreciation

Dr Depreciation

Cr Accumulated depreciation

Write off bad debts

Dr Bad debts

Dr GST

Cr Accounts receivable

Increase allowance for doubtful debts

Dr Doubtful debts

Cr Allowance for doubtful debts

Decrease allowance for doubtful debts

Dr Allowance for doubtful debts

Cr Doubtful debts

Accrued expenses

Dr Expense

Cr Accrued Expenses

Accrued income

Dr Accrued Income

Cr Income

Prepaid expenses

Dr Prepayments

Cr Expense

Income in advance

Dr Income

Cr Income in advance

Invoice on hand for expense

Dr Expense

Dr GST

Cr Accounts Payable

Invoice on hand for sales

Dr Accounts receivable

Cr Sales

Cr GST

Inventory write down (net realisable value)

Dr Cost of Goods Sold

Cr Inventory

Inventory write up (net realisable value)

Dr Inventory

Cr Cost of Goods Sold

Revaluation of land

Dr Land

Cr Land revaluation surplus

Revaluation of buildings

Dr Buildings

Cr Buildings revaluation surplus

Write back accumulated depreciation before revaluation

Dr Accumulated depreciation Buildings

Cr Buildings

Share Issue

Dr Bank

Cr Contributed Equity

Legal costs of share issue

Dr Contributed Equity

Dr GST

Cr Bank

Profit Transfer

Dr Income Summary

Cr Retained Earnings

Payment of Final/Interim Dividend

Dr Final/Interim Dividend

Cr Bank

Transfer dividends

Dr Retained Earnings

Cr Final Dividend

Cr Interim Dividend

Share repurchase

Dr Contributed Equity

Dr Retained Earnings

Cr Bank

How to calculate share repurchase?

Find average value of shares in contributed equity. Multiply by shares repurchased = contributed equity for Dr leg of journal. Total cost of repurchase = bank for Cr leg of journal. Difference = other Cr leg of journal, retained earnings.

How to revalue buildings?

Record this years depreciation. Write back accumulated depreciation. Revalue buildings.