Exercise 1:

1. Determine the value of X

Assets Value Equities Value

Cash on hand 9.000 Short-term borrowings 80.000
Cash in bank 30.000 Payables to laborers 8.000
Trade receivables 12.000 Trade payables 15.000
Materials 37.000 Business Capital 340.000
Tools and instruments 13.000 Fund for basic construction 116.000
Goods on consignments 4.000
Finished goods 5.000
Tangible fixed asset 485.000
Depreciation and amortisation (X)
Total 595.000-X Total 559.000

Accounting equation: Total assets = Total equities

595.000 – X = 559.000
X = 595.000 – 559.000
X = 36.000
2. Make journal entry

1. Dr Acct 334: 8.000

Cr Acct 111: 8.000
2. Dr Acct 211: 55.000
Cr Acct 411: 55.000
3. Dr Acct 151: 4.000
Cr Acct 112: 4.000
4. Dr Acct 157: 3.000
Cr Acct 155: 3.000
5. Dr Acct 331 (331-M): 9.000
Cr Acct 112: 9.000
6. Dr Acct 111: 12.000
Cr Acct 131: 12.000
7. Dr Acct 311: 8.000
Cr Acct 112: 8.000
8. Dr Acct 111: 3.000
Cr Acct 112: 3.000
9. Dr Acct 153: 2.500
Cr Acct 331 (331-M): 2.500
10. Dr Acct 331 (331-N): 1.000
Cr Acct 111: 1.000
11. Dr Acct 111: 15.000
Cr Acct 131(131-A): 15.000
 Acct 111 Acct 112

9.000 30.000
(6) 12.000 8.000 (1) 4.000 (3)
(11) 15.000 1.000 (10) 9.000 (5)
(8) 3.000 8.000 (7)
3.000 (8)
27.000 9.000 0 24.000
30.000 6.000

Acct 131 Acct 151

12.000 0
12.000 (6) (3) 4.000
15.000 (11)
27.000 0 0
15.000 4.000
Acct 153 Acct 155
13.000 5.000
(9) 2.500 3.000 (4)

2.500 0 0 3.000
15.500 2.000

Acct 157 Acct 211

4.000 485.000
(4) 3.000 (2) 55.000

3.000 0 55.000 0
7.000 540.000
Acct 214 Acct 311
36.000 80.000
(7) 8.000
0 0 8.000 0
36.000 72.000
 Acct 214

Acct 334 Acct 331

8.000 15.000
(1) 8.000 (5) 9.000 2.500 (9)
(10) 1.000
8.000 0 10.000 2.500

0 7.500
Acct 331-M Acct 331-N
15.000 0
(5) 9.000 2.500 (9) (10) 1.000

9.000 2.500 1.000 0

8.500 1.000

Acct 411 Acct 441

340.000 116.000
55.000 (2)
0 55.000 0 0
395.000 116.000
 Balance Sheet
31/03/N+1

Assets Closing balance Openning balance

Cash on hand 30.000 6.000
Cash in bank 6.000 30.000
Trade receivables 0 12.000
Paid in advance to supplier 1.000
Goods in transit 4.000 0
Materials 37.000 37.000
Tools and instruments 15.500 13.000
Goods on consignments 7.000 4.000
Finished goods 2.000 5.000
Tangible fixed asset 540.000 485.000
Depreciation and amortisation (36.000) (36.000)
Total 606.500 559.000
Equities Closing balance Openning balance
Short-term borrowings 72.000 80.000
Customers pay in advance 15.000 0
Payables to laborers 0 8.000
Trade payables 8.500 15.000
Business Capital 395.000 340.000
Fund for basic construction 116.000 116.000
Total 606.500 559.000

Exercise 2:

1. Determine X and prepare BS

Total assets = Total equities

7.200.000 = 5.150.000 + X
X = 7.200.000 – 5.150.000
X = 2.050.000
Balance Sheet
01/01/NN

Asset Value Equity Value

Cash on hand 700.000 Short-term borrowings 700.000
Cash in bank 500.000 Current portions of long term debts 200.000
Trade receivables 500.000 Trade payables 500.000
Merchandises 300.000 Long-term borrowings 1.000.000
Goods in transits 500.000 Business capital 2.650.000
Tangible fixed assets 5.000.000 Undistributed profit 2.050.000
Depreciation of tangible assets (300.000) Taxes and obligations payable to 100.000
the state budget
Total 7.200.000 Total 7.200.000

2. Make entries and determine the performance of business

1. Dr Acct 112: 800.000

Cr Acct 131: 800.000
2. a. Dr Acct 153: 300.000
Cr Acct 331: 300.000
b. Dr Acct 153: 50.000
Cr Acct 111: 50.000
3. Dr Acct 156: 450.000
Cr Acct 112: 150.000
Cr Acct 331: 300.000
4. Dr Acct 141: 100.000
Cr Acct 111: 100.000
5. Dr Acct 311: 250.000
Cr Acct 112: 250.000
6. a. Dr Acct 632: 300.000
Cr Acct 156: 300.000
b. Dr Acct 131: 300.000
Dr Acct 111: 450.000
Cr Acct 511: 750.000
7. Dr Acct 641: 200.000
Dr Acct 642: 150.000
Cr Acct 334: 350.000
8. Dr Acct 641: 100.000
Dr Acct 642: 150.000
Cr Acct 214: 250.000
9. Dr Acct 211: 62.000
Cr Acct 111: 62.000
10. Dr Acct 331: 200.000
Cr Acct 111: 200.000
11. Dr Acct 511: 750.000
Cr Acct 911: 750.000
12. Dr Acct 911: 900.000
Cr Acct 632: 300.000
Cr Acct 641: 300.000
Cr Acct 642: 300.000
13. Dr Acct 421: 150.000
Cr Acct 911: 150.000
 Acct 632 Acct 511

(6a) 300.000 300.000 (12) (11) 750.000 750.000 (6b)

300.000 300.000 750.000 750.000

Acct 641 Acct 642

(7) 200.000 300.000 (12) (7) 150.000 300.000 (12)

(8) 100.000 (8) 150.000
300.000 300.000 300.000 300.000

Acct 911 Acct 421

(12) 300.000 750.000 (11) (7) 150.000

(12) 300.000 150.000 (13)
(12) 300.000
900.000 900.000 150.000

TRY TO PREPARE BALANCE SHEET AT 31/3/NN

IF YOU GOT RIGHT ANSWER. WOW ……… YOU ARE AN

EXCELLENT ACCOUNTING STUDENT!