EXAMPLES-3

1.   Make the cost accounting records of the following transactions:

    

       a.   On 01 June 2013, the firm rented an apartment flat whose monthly rent is 4,000 TL. The firm paid one-year rent in advance and 8,000 TL as security deposit from the bank account. There are administrative offices in the flat.

 

            (1)      Make the financial accounting record on 01 June 2013.

(2)         Make the cost accounting record at the end of June 2013.

 

     b.   The firm bought office supplies costing 3,000 TL + 18 % VAT (over capitalization limit) and paid from cash.

 

            (1)      Make the financial accounting record when the firm bought the office supplies.

             (2)      At the end of the period it is calculated that 1,800 TL of office supplies were used. Make the cost accounting record.

 

    c.   The firm paid 2,500 TL for telephone and internet services of the administrative offices from cash.

 

      d.   The firm is a hospital. The firm paid 30,000 TL for the electricity, water, and gas that have been used in the hospital building from the bank account. (80 % of the building is used for medical service, 20 % of the building is used for administrative functions).

 

      e.   The firm paid 20,000 TL as court expenses (mahkeme giderleri olarak) from the bank account.

 

      f.    The firm paid 1,500 TL to the municipality (belediye) as the sign tax (tabela vergisi) of the administrative offices from cash.

 

   g. The firm distributed brochures (broÅŸür) for advertisement and paid 10,000 TL + 18 % VAT to an advertising firm for this from the bank account.

 

      h.   An intercity bus company had its buses maintained (bir ÅŸehirlerarası otobüs ÅŸirketi otobüslerinin bakımını yaptırdı) costing 18,000 TL + 18 % VAT on account (open account).

 

      i.    A manufacturing firm paid 5,000 TL + 18 % VAT to a logistics firm to deliver the goods it produced. The money came from the bank accounts.

 

2.   The firm is a service firm. At the end of the period debit total 740 service cost account is 180,000 TL, debit total of 760 selling, marketing, and delivery expenses account is 80,000 TL, debit total of 770 general administrative expenses account is 50,000 TL. Transfer the amounts to the financial accounting.

 

3.   Following are the February, March and April VAT deductible and VAT payable accounts. At the end of each month make the appropriate accounting records.

February

VAT Deductible			VAT Payable
45,000				52,000

 

March

 

VAT Deductible			VAT Payable
57,000				50,000

 

 

April

 

VAT Deductible			VAT Payable
38,000				48,000

 

 

4.   An employee who is working in an administrative function has a gross salary of 1800 TL. Prepare a payroll for this employee and make the accounting record (MLA = 70 TL).

 

Gross Pay	Social security premium employee share (0.14)	Unemployment insurance premium employee share (0.01)	Income tax base
Income tax (0.15)	MLA	Income tax payable	Stamp duty (0.0075)
Net pay	Social security premium employer share (0.145)	Unemployment insurance premium employer share (0.02)	Total Cost

 

5. The person is a hostess in THY. She has a gross salary of 5,800 TL. Prepare a payroll for her and make the accounting record (MLA = 55 TL). (Use the table in question 4)

 

6.  

      a.   On 31 December debit total of demand deposit account (Euro) is 318,000 TL, credit total of demand deposit account (Euro) is 220,000 TL. There is 42,500 Euro in the bank account. 1 Euro = 2.47 TL on 31 December. Make the accounting record.

      b.   On 31 December debit total of demand deposit account (Euro) is 270,000 TL, credit total of demand deposit account (Euro) is 150,000 TL. There is 45,000 Euro in the bank account. 1 Euro = 2.45 TL on 31 December. Make the accounting record.

 

7.   On 17 April 2013, the company transferred 70,000 TL from its demand deposit account (TL) to a time deposit account (TL). Maturity is 30 days, interest is 9%.

      a.   Make the accounting record on 17 April 2013.

      b.   On maturity the company withdraws the principal + interest and transfers it to demand deposit account (TL). Make the accounting record.

 

8.   On 25 November 2013, the company transferred 50,000 TL from its demand deposit account (TL) to a time deposit account (TL). Maturity is 90 days, interest is 10 %.

      a.   Make the accounting record on 25 November 2013.

      b.   Make the adjusting entry on 31 December 2013 (36 days passed until 31 December)

      c.   On maturity the company withdraws the principal + interest and transfers it to demand deposit account (TL). Make the accounting record.

 

9.   The firm delivered (exported) merchandise to a foreign customer on account (open account) on 25 May 2013. The amount of the sale is 60,000 Euro. Cost of merchandise sold is 120,000 TL. 1 Euro = 2.76 TL when the goods are delivered.

     

      a.  Make the accounting record on 25 May 2013.

      b.   The firm received the payment by bank. 1 Euro = 2.80 TL. Make the accounting record.

 

10.   The firm delivered (exported) goods to a foreign customer on 03 September 2013 on account (open account). The amount of the sale is 80,000 Euro. Cost of goods sold is 160,000 TL.  Euro = 2.82 TL when the goods are delivered.

 

      a.   Make the accounting record on 03 September 2013.

      b.   The firm received the payment by bank. 1 Euro = 2.74 TL.

 

11.

      a.   A forward-dated check (notes receivable) amounting 60,000 TL is not covered (karşılıksız çıkmak). The firm initiated the legal action. Make the accounting record.

      b.   The check is cashed (tahsil edildi). Make the accounting record.

      c.   It is legally understood that the check can never be cashed. Make the accounting record.

 

12.

       a. An account receivable amounting 30,000 TL is over due. The firm initiated the legal action. Make the accounting record.

       b. The receivable is collected. Make the accounting record.     

       c. It is legally understood that the receivable can never be collected. Make the accounting record.

 

13.

Trial Balance

	AMOUNT		BALANCE
	Debit	Credit	Debit	Credit
Cash	10,000	7,000	3,000	-
Bank Accounts	850,000	760,000	90,000	-
Accounts receivables	45,000	28,000	17,000	-
Notes receivables	80,000	50,000	30,000	-
Credit card receivables	300,000	220,000	80,000	-
Deposit and guarantees extended	10,000	-	10,000	-
Allowance for doubtful accounts	-	16,000	-	16,000
Materials inventory	5,000	3,000	2,000	-
Merchandise inventory	100,000	60,000	40,000	-
Advance payments	25,000	16,000	9,000	-
Prepaid expenses	30,000	18,000	12,000	-
Accrued revenues	15,000	7,000	8,000	-
Buildings	250,000	-	250,000	-
Furniture and Fixtures	50,000	-	50,000	-
Vehicles	65,000	-	65,000	-
Accounts payable	30,000	70,000	-	40,000
Notes payable	33,000	78,000		45,000
Taxes payable	17,000	25,000	-	8,000
Social security premiums payable	9,000	15,000	-	6,000
Capital	-	503,000	-	503,000
Domestic sales	-	137,000	-	137,000
Sale returns	7,000	-	7,000	-
Cost of merchandise sold	60,000	5,000	55,000	-
Selling, marketing, and delivery expenses	20,000	-	20,000	-
General Administrative expenses	11,000	-	11,000	-
Interest revenue	-	9,000	-	9,000
Foreign exchange gain	-	8,000	-	8,000
Commission expense	2,000	-	2,000	-
Allowance expenses	16,000	-	16,000	-
Foreign exchange loss	5,000	-	5,000	-
Recovery from allowance loss	-	10,000	-	10,000
Total	2,045,000	2,045,000	782,000	782,000

 

a.   Close temporary accounts

b.   Corporate tax is 9,000 TL. Close period income.

c.   Prepare the balance sheet and the income statement.