Answer
Question 1:
* Source of data to prepare a balance sheet for tangible assets section ( Code 221)
- Balance sheet at 31 December last year
- Trial Balance at 31 December
- Balance of account 211 at the end of the years, ledger of account 211 - Tangible
Assets
* Methods to prepare a balance sheet for tangible assets section ( Code 211)
- Column " Beginning Balance": Base on column " Closing balance " of balance
sheet at 31 December previous year for " tangible assets " section to post
- Column " Closing balance" : Base on Debit balance of account 211 to post to
column " Closing Balance" for tangible assets section
Example:
QUOTE BALANCE SHEET
IN 31 DECEMBER PREVIOUS YEARS
Units: 1.000 VND
Items Code Note Ending Beginning
balance balance
Tangible 221 200.000 100.000
assets
Debit balance of account 211 in 31 December current year is 450.000
=>
BALANCE SHEET
IN 31 DECEMBER – CURRENT YEAR
Items Code Note Ending Beginning
balance balance
Tangible 221 450.000 200.000
assets
Question 2:
a/ Depreciation rate according to straight line method = 1/10 x 100% = 10%
Depreciation rate according to double-declining-balance method = 10% x 2 = 20%
Carrying amount at 31 December 2010= Cost - Accumulate depreciation = 35.000
- 20.664 = 14.336
Depreciation for the years ended 31 December = Carrying amount at 31 December
2010 x 20%
= 2.867,2
Journal entry to record depreciation for 2011 up to date of disposal of equipment:
Dr acc 627: 2.867,2
Cr acc 214: 2.867,2
b/ Carrying amount at 30 November 2011 = 35.000 - ( 20.664 + 2.867,2) =
11.468,8
Journal entry:
Dr acc 811: 11.468,8
Dr acc 214: 20.664 + 2.867,2 = 23.531,2
Cr acc 211: 35.000
Record other income of disposal:
Dr acc 111,112: 14.520
Cr acc 711: 13.200
Cr acc 3331: 1.320
Tranfering other income and other expense:
Dr acc 911: 11.468,8
Cr acc 811: 11.468,8
Dr acc 711: 13.200
Cr acc 911: 13.200
=> Gain on disposal= 13.200 - 11.468,8 = 1.731,2
Journal entry:
Dr acc 911: 1.731,2
Cr acc 421: 1.731,2
Question 4:
a/ According to perpetual accounting system:
12. Dr acc 152: 150.000
Dr acc 1331: 15.000
Cr related acc (111,112,331): 165.000
13. Dr acc 152: 6.000
Dr acc 1331: 600
Cr acc 111,112: 6.600
Direct material cost = Opening raw material + Purchase + Delivery cost - Closing
raw material = 44.000 + 150.000 + 6.000 - 50.000 =150.000
Record direct material cost to production:
Dr acc 621: 150.000
Cr acc 152: 150.000
14. Direct labour cost incurred: 100.000
Journal entry:
Dr acc 622: 100.000
Cr related acc (334,335,338..): 100.000
15. Manufacturing overhead cost: 350.000
Journal entry:
Dr acc 627: 350.000
Cr related acc( 152,153,331,334,338,214...): 350.000
Collecting cost to determine cost of manufactured:
Dr acc 154: 600.000
Cr acc 621 150.000:
Cr acc 622: 100.000
Cr acc 627: 350.000
=> sum of production cost: 600.000
COST OF MANUFACTURED = Opening work in progress + sum of production
cost - Closing work in progress = 150.000 + 600.000 - 200.000 = 550.000
Journal entry for finished goods put in warehouse:
Dr acc 155: 550.000
Cr acc 154: 550.000
b/ According to periodic system, there are some differences:
- Addition to transfer opening raw material:
Dr acc 611: 44.000
Cr acc 152: 44.000
- Addition to transfer closing raw material:
Dr acc 152: 50.000
Cr acc 611: 50.000
- Addition to transfer opening work in progress:
Dr acc 631: 150.000
Cr acc 154: 154.000
- Addition to transfer closing work in progress:
Dr acc 154: 200.000
Cr acc 631: 200.000
- Instead of transaction No 12 and No 13 by:
12. Dr acc 611: 150.000
Dr acc 1331: 15.000
Cr related acc ( 111,112,331): 165.000
13. Dr acc 611: 6.000
Dr acc 1331: 600
Cr acc 111,112: 6.600
- Instead of transaction that record direct material cost by journal entry:
Dr acc 621: 150.000
Cr acc 611: 150.000
- Instead of transaction that collect cost to determine cost of manufactured:
Dr acc 631: 600.000
Cr acc 621: 150.000
Cr acc 622: 100.000
Cr acc 627: 350.000
- Instead of transaction that put in warehouse of finished goods:
Dr acc 632: 550.000
Cr acc 631: 550.000
