ADVANCED EXERCISES
Exrcise 1: In May year N, at manufacturing enterprise TH there are following documents:
(CU: 1000VND)
I. Opening balances of some accounts as below:
- Account 152: 250.000
Detail:
+ Material A: 200.000 (Quantity: 1000kg)
+ Material B: 50.000 (Quantity: 200kg)
- Account 153: 100.000 ( Tool X, quantity 500 units, 1 time allocated)
- Account 151: 250.000 ( according to VAT Invoice No.000332 at 20/4/N from supplier H
about tool X in transit. Quantity: 1000 units.)
II. Transactions incurred in May:
1. Receiving Note No.60 at May 02nd: Received material A purchased on credit at May
1st (VAT Invoice No.000231 of supplier K). Quantity: 1.500kg, purchase price:
330.000 (excluding from 10% VAT).
2. VAT Invoice No.003460 at May 2nd from supplier L of purchasing material B on
credit. Quantity 1.000kg, purchase price: 300.000 (excluding 10% VAT)
3. Receiving Note No.81 at May 5th (VAT Invoice No.3460). Quantity: 900kg.
Deficiency quotas rate is 2%. The deficiency out of quotas was recovered by the
transporter.
4. Receiving Note No.82 at May 6th: Received tool X (according to VAT Invoice
No.000332 at April 20th), Quantity: 1000 units.
5. Issuing Note No.55 at May 15th: issued 1.500kg material A and 500kg material B
for Manufacturing Department.
6. Issuing Note No.56 at May 26th: issued 300 tool X for Manufacturing Department
and 250 tool X for Administrative Department.
7. Debit Note No.A5372 at May 30th : settlement for materials purchased from supplier
K in May.
Requirement:
1. Calculate the cost of materials and tools issued.
2. Make journal entries.
3. Record the above transactions on General Journal and General Ledger of account
152.
Additional information:
- Manufacturer A applied deductible VAT method and perpetual inventory system.
- Manufacturer A calculated cost of materials and tools issued according to FIFO method.
Exercise 2: In May year N, at manufacturing enterprise TH there are following documents:
(CU: 1000VND)
I. Opening balances of some accounts as below:
- Account 152: 250.000
Detail:
+ Material A: 200.000 (Quantity: 1000kg)
+ Material B: 50.000 (Quantity: 200kg)
- Account 153: 100.000 ( Tool X, quantity 500 units, 1 time allocated)
- Account 151: 250.000 ( according to VAT Invoice No.000332 at 20/4/N from supplier H
about tool X in transit. Quantity: 1000 units.)
II. Transactions incurred in May:
1. Receiving Note No.60 at May 02nd: Received material A purchased on credit at May
1st (VAT Invoice No.000231 of supplier K). Quantity: 1.500kg, purchase price:
330.000 (excluding from 10% VAT).
2. VAT Invoice No.003460 at May 2nd from supplier L of purchasing material B on
credit. Quantity 1.000kg, purchase price: 300.000 (excluding 10% VAT)
3. Receiving Note No.81 at Mat 5th (VAT Invoice No.3460). Quantity: 900kg.
Deficiency quotas rate is 2%. The deficiency out of quotas was recovered by the
transporter.
4. Receiving Note No.82 at May 6th: Received tool X (according to VAT Invoice
No.000332 at April 20th), Quantity: 1000 units.
5. Credit Note No.A5372 at May 30th : settlement for materials purchased from supplier
K in May.
Requirement:
1. Calculate the cost of materials and tools issued.
2. Make journal entries.
3. Record the above transactions on General Journal and General Ledger of account
152.
Additional information:
- Manufacturer A applied deductible VAT method and perodic inventory system.
- Manufacturer A calculated cost of materials and tools issued according to FIFO method.
Exercise 3:
Company HC applied deductible VAT method and perpetual inventory system. In
December year N, there were following documents: (CU: 1000VND)
I. Opening balance of account 152: 570.000
Detail:
+ Material A: 560.000 (Quantity: 8.000kg)
+ Fuel B: 10.000 (Quantity: 500 litres)
II. Transactions incurred in December:
1. Issuing Note No.290 at December 1st: issued 5.000kg material A for Manufacturing
Department.
2. Receiving Note No.189 at December 3rd : Received material A purchased on credit
at December 3rd (VAT Invoice No.001230 from supplier TH). Quantity: 10.000kg,
unit price: 68/kg (excluding from 10% VAT).
3. Issuing Note No.295 at December 5th: issued 400 litres fuel B for test running a new
equipment of Manufacturing Department.
4. Issuing Note No.296 at December 6th: issued 6.500kg material A for Manufacturing
Department.
5. Receiving Note No.191 at December 10th : Received fuel B purchased on credit at
December 10th (VAT Invoice No.001221 from supplier T). Quantity: 800 litres, unit
price: 21/litre (excluding from 10% VAT).
6. Receiving Note No.199 at December 13th : Received 7.500kg material A purchased
on credit at December 13th (VAT Invoice No.001230 from supplier TH. Quantity:
8.000kg, unit price: 68,5/kg (excluding from 10% VAT)). In stock taking, company
HC found 500kg material A with wrong specification. Company HC had informed
the supplier and required an allowance of 10% for that materials.
7. Issuing Note No.300 at December 15th: issued 10.000kg material A for
Manufacturing Department.
8. At December 16th, supplier TH accepted the allowance requirement and had sent
adjusting invoice.
9. Receiving Note No.203 at December 20th : Received material A purchased on credit
at December 20th (VAT Invoice No.002225 from supplier NB). Quantity: 5.000kg,
unit price: 70/kg (excluding from 10% VAT).
10. Supplier NB allowed trade discount 2% for company HC related to the materials
purchased at December 20th.
11. Issuing Note No.303 at December 22th: issued 3.500kg material A for Manufacturing
Department.
12. Scrap from production was put into stock according to Receiving Note No.210 at
December 31st. Value of scrap was 2.000.
Requirement:
1. Calculate the cost of materials and tools issued.
2. Make journal entries.
3. Record the above transactions on General Journal and General Ledger of account
152.
Knowing that: Company HC calculates cost of materials and tools issued according to FIFO
method.
Exercise 4:
Posco is a manufactoring company that uses material A for manufactoring product X. In
December 20X1, there were figures about material A as below: (CU: 1,000VNĐ)
A. Opening balance: 500,000 (Quantity: 5,000kg)
B. Material A purchased in December 20X1:
1. Purchased 8,000kg of material A from supplier L (VAT invoice number 034127,
December 12 20X1) with total price of 816,000 (VAT 10% was excluded). All
materials were put into stock (Goods Receipt Note number 197, December 12
20X1). Posco paid by transfering for this pack.
2. Purchased 3,000kg of material A from supplier M. All materials were put into stock
(according to Goods Receipt Note number 200, December 29 20X1), but until
December 31 20X1 accoutant had not received VAT invoice from supplier and
decided to record this transaction with estimated price of 102/kg.
C. Material A issued in December 20X1:
1. December 1 20X1 : issued 4,000kg for manufactoring product X
2. December 15 20X1: issued 5,000kg for manufactoring product X
3. December 31 20X1: issued 1,200kg for selling department, 1,300kg for
administrative department.
Required:
1. Calculate and make journal entries for the transactions given.
2. Calculate closing balance of material A in stock.
Additional information:
- Posco applies perpetual inventory system, calculates cost of material issued by FIFO
method.
- VAT was deductible
Exercise 5:
Posco is a manufactoring company that uses material A for manufactoring product X. In
December 20X1, there were figures about material A as below: (CU: 1,000VNĐ)
A. Opening balance: 500,000 (Quantity: 5,000kg)
B. Material A purchased in December 20X1:
1. Purchased 10,000kg material A from supplier K on credit (VAT invoice number
000134, December 2 20X1) with total price of 1,155,000 (including VAT 10%). All
materials were put into stock (Goods Receipt Note number 192, December 2 20X1).
2. Purchased 3,000kg material A from supplier M (VAT invoice number 021323,
December 30 20X1) with total price of 312,000 (VAT 10% was excluded).
December 31 20X1, the accountant had not received the Goods Receipt Note yet.
Posco had not paid for this pack.
C. Material A issued in December 20X1:
1. December 1 20X1 : issued 4,000kg for manufactoring product X
2. December 15 20X1: issued 8,000kg for manufactoring product X
3. December 31 20X1: issued 1,200kg for selling department, 1,300kg for
administrative department.
Required:
1. Calculate and make journal entries for the transactions given.
2. Calculate closing balance of material A in stock.
Additional information:
- Posco applies perpetual inventory system, calculates cost of material issued by AVGO
method.
- VAT was deductible
Exercise 6:
Company ABC has the following transactions in January 2016:(unit: CU)
1. 9 January, purchasing 1000kg material E with purchase price of 55 (not included of
VAT 10%). 10 January, the company received the material with the shortage of 20kg
(as a normal rate: 1%)
2. 12 January, purchasing 500kg material E with purchase price of 55 (included of VAT
10%). The company received both the material and the invoice in January.
3. Other information is as below:
- Direct labor cost: 10.000
- Manufacturing overhead cost: 7.000
- Selling expenses: 10.000
- Administrative expenses: 7.000
4. Raw materials inventory, January 1: 44.000
5. Raw materials inventory, January 31: 40.000
6. Work in process inventory, January 1: 10.000.
7. Work in process inventory, January 31: 20.000.
8. During January, company A manufactured total 500 finished goods.
9. In January, company A sold 280 finished goods with price 150/unit (not included of
VAT 10%).
Noted that: Corporate income tax rate 20%; the perpetual method and deductible VAT
method applied.
Require:
1. Provide double entries for above transactions.
2. Show different entries if the company applies the periodic system.
Exercise 7:
Company ABC has the following transactions in October 2016 (unit: CU)
1. 12 October, Purchase 500kg material E with price of 55 inclusive of VAT. Received
both material and invoice in 14 October
2. Other information is as follows:
- Direct labor cost: 10.000
- Manufacturing overhead cost: 7.000
- Selling expenses: 10.000
- Administrative expenses: 7.000
3. Raw materials inventory, January 1: 44.000
4. Raw materials inventory, January 31: 40.000
5. Work in process inventory, January 1: 10.000.
6. Work in process inventory, January 31: 20.000.
7. During October, company ABC manufactured total 1.000 finished goods, half of
which were sold immediately after finishing production, the rest were put in stock.
Noted that: Company ABC has applied perpetual method, deductible VAT method. Unit
price of finished good: 150 (excluded from VAT 10%)
Require:
1. Make double entries from the transactions
2. Show different entries if the company applies the periodic system.
Exercise 8:
Company HC applied deductible VAT method and perpetual inventory system. In
December year N, there were following documents: (CU: 1000VND)
I. Opening balance of account 152: 570,000
- Material A: 560,000 (Quantity: 8,000kg)
- Fuel B: 10,000 (Quantity: 500 litres)
II. Transactions incurred in December:
1. Receiving Note No.189 at December 3rd : Received material A purchased on credit
at December 3rd (VAT Invoice No.001230 from supplier TH). Quantity: 10,000kg,
unit price: 68/kg (excluded from 10% VAT).
2. Issuing Note No.290 at December 5th: issued 5,000kg material A for Manufacturing
Department.
3. The minutes of handover fixed asset No.10 at December 16th, purchased a measuring
equipment with purchasing price of 120,000 (excluded from 10% VAT) and
transportation fee of 3,000 paid via bank. The company had issued 50 litres of fuel
B for test running this equipment (Issuing Note No.291 at December 15th).
4. Receiving Note No.191 at December 20th : Received fuel B purchased on credit at
December 20th (VAT Invoice No.001221 from supplier T). Quantity: 800 litres, unit
price: 21/litre (excluding from 10% VAT).
5. Scrap from production was put into stock according to Receiving Note No.210 at
December 31st. Value of scrap was 2,000.
Knowing that: Company HC calculates cost of materials and tools issued according to FIFO
method.
Requirements:
1. Make journal entries.
2. Record the above transactions on General Journal.
Exercise 9:
The following information is available in T company: (Unit:1,000d)
1. Sale on credit to company C some products with COGS: 500,000, price before VAT:
750,000. VAT 10%. Payment term: 15 days. After 7 days from delivery, company
C made payment and entitled to payment discount of 2% of total payment. Company
T received credit note from bank.
2. Disposal of a machine: Historical cost: 600,000, accumulated depreciation: 540,000.
useful life: 10 years. Receiving money from disposal: 65,000.
3. Selling expenses incurred: 25,000
4. Administrative expenses incurred: 75,000
5. Other Financial expenses:…
6. Financial income: …..
7. Calculated business result
Requirements:
1. Fill in …. so the company would make profit. Knowing that CIT rate = 20%.
2. Make journal entries.
3. Prepare Income Statement.
Exercise 10:
Company HC applied deductible VAT method and perpetual inventory system. In
December year N, there were following documents: (CU: 1000VND)
I. Opening balance of account 152: 570,000
+ Material A: 560,000 (Quantity: 8,000kg)
+ Fuel B: 10,000 (Quantity: 500 litres)
II. Transactions incurred in December:
1. Issuing Note No.290 at December 1st: issued 5,000kg material A for Manufacturing
Department.
2. Receiving Note No.189 at December 3rd : Received material A purchased on credit
at December 3rd (VAT Invoice No.001230 from supplier TH). Quantity: 12,000kg,
unit price: 68/kg (excluded from 10% VAT).
3. The minutes of handover fixed asset No.10 at December 16th, purchased a measure
equipment with purchasing price of 120,000 (excluded from 10% VAT) and
transportation fee of 3,000 paid via bank. The company had issued 50 litres of fuel
B for test running this equipment (Issuing Note No.291 at December 15th).
4. Receiving Note No.191 at December 20th : Received fuel B purchased on credit at
December 20th (VAT Invoice No.001221 from supplier T). Quantity: 500 litres, unit
price: 21/litre (excluding from 10% VAT).
5. Scrap from production was put into stock according to Receiving Note No.210 at
December 31st. Value of scrap was 2,000.
Knowing that: Company HC calculates cost of materials and tools issued according to FIFO
method.
Requirements:
1. Make journal entries.
2. Record the above transactions on General Journal.
Exercise 11: The following information is available in T company: (Unit:1,000d)
1. Sale on credit to company C some products with COGS: 500,000, price before VAT:
900,000. VAT 10%. Payment term: 15 days. After 7 days from delivery, company
C made payment and entitled to payment discount of 2% of total payment. Company
T received credit note from bank.
2. Disposal of a machine: Historical cost: 600,000, accumulated depreciation: 540,000.
useful life: 10 years. Receiving money from disposal: 65,000.
3. Selling expenses incurred: 25,000
4. Administrative expenses incurred: 75,000
5. Financial expenses:…
6. Financial income: …..
7. Calculated business result
Requirements:
1. Fill in …. so the company would make profit. Knowing that CIT rate = 20%.
2. Make journal entries.
3. Prepare Income Statement.