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Journal Entries and Financial Statement Summary

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Christian Dumba
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12 views2 pages

Journal Entries and Financial Statement Summary

Uploaded by

Christian Dumba
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Question 2

1. General journal

Date Debit (Dr) Dr R Credit (Cr) Cr R

30-Jun- Cash 1,320,000 Investment in ChrisExcel Ltd 1,002,750


2025

30-Jun- Other comprehensive income 317,250


2025 — FVOCI gain

30-Jun- Other comprehensive income 317,250


2025 — FVOCI gain

30-Jun- Other comprehensive income 317,250 Retained earnings 317,250


2025 — FVOCI gain

30-Jun- Cost of sales — Depreciation 750,000 Accumulated depreciation — 750,000


2025 expense Machinery

01-Sep- Accumulated depreciation — 125,000 Machinery (cost) 250,000


2024 Machinery

01-Sep- Loss on disposal of machinery 125,000


2024

30-Jun- Cash 85,000 Other income — Insurance 85,000


2025 proceeds

2. Statement

Description R

Revenue 9,950,000

Cost of sales (5,472,500)

Gross profit 4,477,500

Other income 1,285,000

Operating income 5,762,500

Distribution expenses (150,000)

Administrative expenses (4,703,400)

Other expenses (non-finance) (325,000)

Operating profit 584,100

Finance costs (interest) (72,000)

Profit before tax 512,100


Income tax expense (55,000)

Profit for the year 457,100

Other comprehensive income (OCI)

Gain on derecognition of FVOCI equity instrument 317,250

Transfer of FVOCI reserve to retained earnings on derecognition (317,250)

Total OCI —

Total comprehensive income 457,100

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