Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

BALANCE SHEET
PART A - NON-CURRENT ASSET VALUATION

Question 1 On 29th of December 2011, a company purchased a piece of equipment for an

acquisition cost of 40,000. The estimated useful life is 10 years and residual value by the end
of the useful life is estimated to be 0. The company uses the straight line depreciation method
(allocates the entry value evenly over the useful life).
Required:
a.) Calculate annual depreciation and the un-depreciated value of the equipment for the first
5 years.
b.) Calculate the carrying amount of the equipment for the years 2012 and 2013 knowing that

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its market value at these dates was 38,000 and 30,000 respectively.

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

Question 2 On 22nd of December 2008, a company purchased equipment for an acquisition

cost of 300,000 RON. The estimated useful life of the asset is 15 years. Residual value by the
end of year 15 is estimated to be 0. The company uses the straight line depreciation method.
Required:
a.) Calculate annual depreciation and the un-depreciated value of the equipment for the first
5 years.
b.) Calculate the carrying amount of the equipment at the end of the years 2009, 2010 and
2011 knowing that its market value at these dates was 288,000 (for 2009) 265,000 (for 2010)

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and 235,000 (for 2011).

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

PART B - BALANCE SHEET PRESENTATION (LIST FORMAT)

Question 3 The following information is available on 31st of December 2010

Information
Accounts payable (also known as Trade creditors)
Accounts receivable (also known as Trade debtors)
Buildings (acquisition cost 100,000 accumulated depreciation to date 20,000
market value on 31.12.2010 was 78,500)
Cash at bank
Cash on hand
Interest payable
Licenses (acquisition cost 60,000, accumulated depreciation 20,000 market
value 55,000)
Long-term bank loan (10% becoming due and payable in less than a year)
Long-term receivables
Merchandise (acquisition cost 20,000 market value at 31.12.2010, 25,000)
On October 1st the company paid 6,000 representing the next 6 months rent
Shares bought for speculation purposes acquisition cost 2,500 market value
2,800
Profit for the year
Provisions for litigation
Reserves
Salaries payable
Social capital

Amounts
12,000
15,000
4,000
1,000
1,500
24,000
20,000
4,000
500
40,000
16,000
86,000

Required:
a.) Draw up a balance sheet (list format) as of 31st of December 2010.
b.) What are the long-term finance and the working capital of this company? Comment briefly

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on its financial position.

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

a.) Balance sheet for the year ended December 31st 2010
Narratives
A. NON-CURRENT ASSETS
I. Intangibles

Amounts

II. Property plant and equipment

III. Long term financial investments

B. CURRENT ASSETS
I. Inventories

II. Receivables

III. Short-term financial investments

IV. Cash on hand and at bank

C. PREPAYMENTS
D. CURRENT LIABILITIES

E. NET CURRENT ASSETS/NET CURRENT LIABILITIES (B+C-D-I)

F. TOTAL ASSETS LESS CURRENT LIABILITIES (A+E)
G. NON-CURRENT LIABILITIES
H. PROVISIONS FOR RISKS AND CHARGES

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I. DEFERRALS
J. CAPITAL AND RESERVES

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

Question 4 The following information is available on 31st of December 2012 about a service
provider company.
Amounts
12.000
4,000
7,000
5,000
2,000
124,000
40,000
12,000
30,000
4,000
5,000
473,000
35,000
9.000
26,000
7,000
120,000
15,000
60,000
25,000

Required:
a.) Draw up a balance sheet (list format) as of 31st of December 2010.
b.) Check of the value of 120,000 for the social capital is the correct one. If not, replace it
with the right figure.
b.) What are the long-term finance and the working capital of this company? Comment briefly
on its financial position.

Narratives

Amounts

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Information
Bonds held to maturity (they mature in 2018) - long term fin inv
Bonds purchased for resale acquisition cost 15,000, market value on balance sheet
date 18,000 - short term fin inv
Building (acquisition cost of 600,000 accumulated depreciation 60,000, market value
520,000
Cash at bank
Consumables (acquisition cost 20,000, market value on 31.12.2012 21,000)
Dividends payable
Equipment (acquisition cost 50,000 accumulated depreciation 20,000 market value
28.000)
Income tax payable
Interest payable
Land (acquisition cost 120,000 market value on 31.12.2012 140,000)
Licenses (acquisition cost 30,000, accumulated amortization 6,000, no market value
Long-term bank loan (of which 1 quarter becomes due and payable in less than a year)
Long-term lease obligation (a quarter becomes payable within the next 12 months)
Long-term receivable - long term fin inv
Patents
Prepaid rent 18.000. Payment made on 1st of July 2012 for the next 12 months
Profit for the year
Receivables from the owners
Reserves (retained earnings)
Salaries payable
Services in progress
Shares bought for long-term control of another company (acquisition cost 28,000
market value 25.000)
Shares bought for resale (acquisition cost 18,000, market value 14,000) short term
Short term bank loan
Short term deposits with a bank (note: the company made the deposit) cash at bank
Social capital (ordinary shares)
Sundry debtors (debitori diversi) C Asset recev.
Trade creditors (Accounts payable) C.L.
Trade debtors (Accounts receivable) C.A. recev.

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

A. NON-CURRENT ASSETS
I. Intangibles

II. Property plant and equipment

III. Long term financial investments

B. CURRENT ASSETS
I. Inventories

II. Receivables

III. Short-term financial investments

IV. Cash on hand and at bank

C. PREPAYMENTS
D. CURRENT LIABILITIES

E. NET CURRENT ASSETS/NET CURRENT LIABILITIES (B+C-D-I)

F. TOTAL ASSETS LESS CURRENT LIABILITIES (A+E)
G. NON-CURRENT LIABILITIES
H. PROVISIONS FOR RISKS AND CHARGES

Question 5 Ex. 6/ Page 67

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I. DEFERRALS
J. CAPITAL AND RESERVES

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016
Prepare a balance sheet as of 31 December 2013 using the horizontal and the vertical
layout, based on the following information:

Property plant and equipment 3.200 RON

Depreciation of Property plant and equipment 400 RON
Inventories 1.000 RON
Customers (trade receivables) 600 RON
Cash at bank and in hand 200 RON
Suppliers 500 RON
Advances granted to suppliers for services 100 RON
Income tax payable 300 RON
Long term bank loans 1.110 RON, from which 500 RON becoming due in less than

one year
Issued capital (share capital) 2.200 RON
Reserves 400 RON
Profit 90 RON
Salaries payable 100 RON
Rent received in advance for the next two years x
Long term bank loan granted to other company 200 RON

Amounts OWNERS EQUITY AND

LIABILITIES

Amounts

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ASSETS

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

NON-CURRENT ASSETS
Intangibles

OWNERS EQUITY

Property, Plant and Equipment

PROVISIONS FOR RISKS AND
CHARGES
Long-term financial
investments

NON-CURRENT LIABILITIES

CURRENT ASSETS
CURRENT LIABILITIES
Inventories

Receivables

Short-term financial
investments

PREPAYMENTS

DEFERRALS

TOTAL ASSETS

TOTAL OWNERS EQUITY AND

LIABILITIES

Narratives

Amounts

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Cash on hand and at bank

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

A. NON-CURRENT ASSETS
I. Intangibles

II. Property plant and equipment

III. Long term financial investments

B. CURRENT ASSETS
I. Inventories

II. Receivables

III. Short-term financial investments

IV. Cash on hand and at bank

C. PREPAYMENTS
D. CURRENT LIABILITIES

E. NET CURRENT ASSETS/NET CURRENT LIABILITIES (B+C-D-I)

F. TOTAL ASSETS LESS CURRENT LIABILITIES (A+E)
G. NON-CURRENT LIABILITIES
H. PROVISIONS FOR RISKS AND CHARGES

Question 6 Ex. 5/ Page 66

The following information is given at the end of the year for company ABC:

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I. DEFERRALS
J. CAPITAL AND RESERVES

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

Licenses (net value) 12.000 RON

Land (net value) 50.000 RON
Buildings (gross value) 52.000 RON
Accumulated depreciation on buildings 12.000 RON
Provisions for guarantees to customers 2.000 RON
Issued capital (subscribed share capital) x OW
Deffered income 1.000 RON Defer.
Rent paid in advance for 3 years 1.000 RON Prepayments
Suppliers payable 500 RON C.L
Merchandise 200 RON C.A
Raw materials 100 RON --=-Long term bank loan 20.000 RON, 6.000 RON becoming due and payable within

one year C.L

Customers 500 RON Receivables
Research costs 1.500 RON Not a blance sheet item
Long term loan granted to a subsidiary1.750 RON
Consumables 120 RON
Finished goods 145 RON
Cash in hand 203 RON
Cash at bank 604 RON
Legal reserves 3.000 RON O.e
Profit for the year 4.000 RON O.e
Expense related to companys contribution to social security 1.250 RON Income
statement

Determine total current assets, total current liabilities in compliance with IAS 1 and
calculate the value of subscribed share capital (issued capital).

Amounts

OWNERS EQUITY AND

LIABILITIES

Amounts

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ASSETS

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

NON-CURRENT ASSETS
Intangibles

OWNERS EQUITY

Property, Plant and Equipment

PROVISIONS FOR RISKS AND
CHARGES
Long-term financial
investments

NON-CURRENT LIABILITIES

CURRENT ASSETS
CURRENT LIABILITIES
Inventories

Receivables

Short-term financial
investments

PREPAYMENTS

DEFERRALS

TOTAL ASSETS

TOTAL OWNERS EQUITY AND

LIABILITIES

Question 7 Ex. 4/ Page 66

Draw-up the balance sheet in compliance with IAS 1 (the horizontal layout) based on the
following information:

Buildings (gross value) 1.000 RON tangibles

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Cash on hand and at bank

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

ASSETS

Suppliers (trade payables) 600 RON C.liab

Cash at bank 2.000 RON
Accumulated depreciation on buildings 100 RON
Raw materials 200 RON invent
Issued capital paid in (subscribed share capital paid in) 2.800 RON oe
Land 200 RON tang
Equipments (gross value) 1.500 RON tang
Other reserves 150 RON oe
Customers 700 RON receiv
Accumulated depreciation on equipments 200 RON
Write downs of raw materials 50 RON ( rawmat 200ron - 50ron)
Legal reserves 400 RON oe
Finished goods 500 RON invent
Long term bank loan 2.000 RON nc.l.
Merchandise 300 RON invent
Profit 100 RON oe.

Amounts OWNERS EQUITY AND

LIABILITIES

Amounts

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Tutorials 4, 5

Tutorials 4, 5

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

ACCOUNTING, BT FACULTY, FIRST YEAR, 2015-2016

NON-CURRENT ASSETS
Intangibles

OWNERS EQUITY

Property, Plant and Equipment

PROVISIONS FOR RISKS AND
CHARGES
Long-term financial
investments

NON-CURRENT LIABILITIES

CURRENT ASSETS
CURRENT LIABILITIES
Inventories

Receivables

Short-term financial
investments

PREPAYMENTS

DEFERRALS

TOTAL ASSETS

TOTAL OWNERS EQUITY AND

LIABILITIES
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Cash on hand and at bank