Week 3 2019 Weds slides for students.pdf - Week 3 Wednesday lecture ACF 100 Financial Accounting Dr Catherine Salzedo Michaelmas Term 2019-20 T accounts

Week 3 2019 Weds slides for students.pdf - Week 3 Wednesday...

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Week 3 Wednesday lecture ACF 100 Financial Accounting Dr Catherine Salzedo Michaelmas Term, 2019-20
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T accounts and trial balance Cash Asset P or L/retained profits Equity Inventory Asset Trade payables Liability Insurance Expense Ordinary share capital Equity Land Asset Trade receivables Asset Machinery Asset Loan payable Liability Advertising Expense
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(a) The company issues 15 million ordinary shares for £8 cash each on 1 January 2019 (ignore any difference between share capital and share premium if you have done accounting before) (b) Grieves Ltd buys land costing £150m on 1 January 2019. It pays £60m in cash and takes a long term loan for the balance. (c) The company buys machinery on credit costing £14m on 1 January 2019. Machinery is not depreciated in the year of purchase. (d) The company pays £2m cash for insurance for the year from 1 January 2019. (e) Grieves Ltd acquires inventory on credit costing £12m on 1 January 2019 from the same supplier as the machinery. (f) The company pays for half of the amount owed to the supplier of machinery and inventory on 30 June 2019. (g) Grieves Ltd sells goods which cost £10m for £18m on credit on 30 June 2019.
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