Financial Accounting 2 - 7

5. Dividends and profits must be fully and promptly accounted for.

profit

ok

share in Bao​​

separate financial statements of the parent company at the time of entitlement to receive. Dividends , profits

profit

ok

split in one

number of cases

ok

Calculate as follows :

a) Shares and profits

profit

ok

divide by money or

after

investment date

profit

Undistributed after-tax profit of subsidiaries, joint ventures,

link, business

law. Then , when multiplying

ok

profit

State, business

operating revenue​​​

which reduces the value of the investment.

core

porch

according to the principle:

– Units not 100% owned by the State shall follow the number of shares.

eel

g stock is

core

to lose control over the subsidiary, lose the right to co-operate

Accounting records investments as capital contributions to other entities or business securities.

business, no record

9. When setting up

loss to set aside for investment loss reserve .

EXERCISE

Lesson 1

Choose true or false and explain the following sentences:

1. Profits (losses) arising from the transfer, liquidation, and recovery of investments in subsidiaries are recorded in other expense accounts or other income accounts.

2. When accounting for financial investments, the value of financial investments when recorded is determined according to the original cost method.

3. Company A purchased 50,000 common shares to invest in company B, the total par value is 800 million VND, the total purchase price is 820 million VND, the purchase cost is 10 million, all paid by bank transfer. The company's charter capital is 10 billion VND. The company's voting ratio is 15%.

4. The provision for impairment of financial investments is established when the difference between the original price and the market price is negative (<0).

5. On February 15, 2019, company X transferred and sold 3,000 Y bonds with maturity date of December 31, 2019. The selling price was 900,000 VND/bond, collected by bank transfer, original price

800,000 VND/bond, accounting reflects as follows: (Unit: 1,000 VND) Debit account 112: 2,700,000

Credit account 2282: 2,400,000

Credit account 515: 300,000

6. On October 21, 2016, company A contributed a management software to a joint venture with company C. The original price was 100 million VND, depreciated 20 million VND. This asset was approved by the joint venture parties at a price of 90 million VND. The accountant reflected:

Debit account 222: 90

Debit account 214: 20

Credit account 211: 100

Credit account 811: 10

7. On March 10, 2019, An Long Company's receivables were 300 million VND, overdue for 3 months, Company X determined the provision rate to be 30%, the accountant reflected:

Debit account 6426: 210

Credit account 2293: 210

8. Voting ratio is calculated by the formula: Number of shares held

Company charter capital

x 100%

9. Company A buys 1,000 shares of company B, the total purchase price is 100 million, the brokerage fee is 2 million, all paid in cash, the original price of the above 1,000 shares is 100 million

10. Company A currently holds 60% of company B's equity. After transferring 30% of company B's equity, company B is still a subsidiary of company A.

11. When setting up provisions or adding to reduce the value of trading securities, the accountant records as follows: Debit account 2291/ Credit account 635

12. On October 30, N, company A sold 10,000 Z bonds, due December 31, N+1. The selling price was 12,500 VND/bond, collected by bank transfer after deducting a 1% payment discount. Knowing that the original price was 12,000 VND/bond, the accountant reflected as follows:

Debit account 112: 120,000,000

Debit account 635: 5,000,000

Credit account 1282: 120,000,000

Credit account 515: 5,000,000

13. On December 31, the market price of company B's shares was VND 100,000/share, knowing that the original price was VND 102,000/share, with a quantity of 10,000 shares, the accountant does not need to set up a provision for devaluation of trading securities.

14. In case of contributing capital to a joint venture by fixed assets, if the value of the fixed assets is assessed to be higher than the book value at the time of capital contribution, the difference will be reflected by the accountant in the credit side of the financial activity revenue account.

15. Trading securities include term deposits, stocks, loans

16. When writing off bad debts, the accountant reflects as follows: Debit account 635

Have account 131

17. In case of inventory price reduction, the inventory price reduction provision is calculated according to the following formula:

Inventory price reduction allowance = quantity of inventory reduced from original price

18. For bad debts that have been written off and are now recovered, accountants record them in the credit side of account 515.

19. Company X purchased 5,000 shares of company A with a par value of VND 500,000/share, the actual purchase price was VND 520,000/share paid by bank transfer, the cost incurred during the purchase process was VND 3,000,000 paid in cash, the original price of

5,000 shares above are 2,503,000,000 VND

20. Company X brought a batch of goods to contribute capital to a joint venture, the actual value was 80 million VND, the value approved by the joint venture council was 85 million VND, the accountant reflected as follows:

Debit account 222: 85

Credit account 156: 85

Lesson 2

At the beginning of January/N, Company A had the following situation:

Unit: million VND

Investment partner

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In year N, the company had the following transactions:

1. Purchase 60,000 common shares of company H, total par value: 6,000. Total purchase price: 6,100; purchase cost: 10, all paid by bank transfer. Company H's charter capital is: 10,000.

2. Received notice from the Board of Directors of company F, the annual dividend rate of common stock N-1 is 10%.

3. Purchased 50,000 more common shares of company F at the Stock Exchange, total purchase price: 4,600; purchase cost: 20; all paid with short-term loans.

4. Received notice from the Board of Directors of company E, the common stock dividend rate is: 10%.

5. Transfer 20,000 shares of Company E to Company Q, total selling price is: 1,900; Company Q pays by bank deposit after deducting 1% payment discount received.

6. According to the joint venture contract signed with company Z on the establishment of joint venture company I (the interest ratio of each joint venture party is 50%). Company A transfers capital to company I as follows:

- Tangible fixed assets: original price: 2,500; accumulated depreciation: 500; negotiated price: 1,500.

- Cash: 50.

- Bank deposit: 150.

7. Sold 30,000 shares of company B to company L. Total selling price: 4,000; company L paid company A with bank deposit.

8. Received notice from the Board of Directors of company B, the annual dividend rate of common stock N-1 is 12%.

9. Upon receiving notice from the Board of Directors of Company C, the joint venture profit that Company C divided for Company A was: 120; Company A decided to add that income to the investment capital for Company C.

10. Received notice from the Board of Directors of company D, the common stock dividend rate is 15%.

11. Receive dividends from Companies B, D, E, F by bank transfer.

12. Transfer all joint venture capital investment in company C to company Z with a total selling price of 11,000. Transfer cost paid in cash: 30.

Request :

1. Record and reflect the above situation in the account. Knowing that the investment partners at the beginning of this period did not increase the charter capital.

2. Suppose at the end of year N, the prices of the stocks that company A is holding on the stock market are as follows: (Unit: 1,000 VND)

Shares of

Determine the level of provision for financial investment depreciation and record it in the account.

3. Determine the financial performance of year N.

Lesson 3

At the beginning of year N, the situation of stocks and bonds that company X is holding is as follows (Unit: 1,000 VND):

- Situation of long-term investment shares in the Company

Stock type

Investment bond (tp) situation at maturity date

Fruit type

vote

In year N, the situation is as follows:

1. Received notice from company C about dividend rate in year N-1 is: 12%.

2. Buy 35,000 shares of company B, par value: 500/share; actual purchase price: 450/share (paid by bank deposit).

3. Received notice from company B, dividend rate in year N-1 is: 5%.

4. Receive dividends from company B and company C by bank transfer.

5. Payment of matured bond X, principal: 505/note, interest: 30/note, received money by bank transfer.

6. Transfer and sell 3,000 Y bonds, selling price 950/bond, collected by bank transfer. Transfer cost paid in cash: 20,000.

7. Transfer and sell 300 shares of company D, selling price: 510/share, payment collected by bank transfer. After deducting 1% discount, payment will be made to the buyer.

8. Purchased 2,000 T bonds, face value: 1,000/bond, term of 5 years, prepaid interest rate: 25%, Company X paid by bank transfer: 800/bond. Cost incurred in the process of purchasing the above bonds: 5,000 (paid in cash).

9. Purchased 2,000 shares of company F, par value: 500/share; actual purchase price: 520 paid with short-term loan. Costs incurred in the process of purchasing these shares were paid in cash: 30,000.

10. Sold 16,000 shares of company E, selling price: 1,250/share, collected money by bank transfer after 1% payment discount for customers.

11. Sell 4,000 shares of company D, selling price 550/share, customer pays 30% in cash, 70% by bank transfer.

12. Receive interest by transfer from the remaining Y bonds at a rate of 6% on par value.

13. Purchased 50,000 shares of company B, par value: 500/share; purchase price 460/share, the company paid with long-term loan after deducting 1% payment discount received.

14. The selling prices of the securities that company X is holding as of December 31, 2016 are as follows:

- Company B shares: 480/share

- Company C shares: 800/share

- Company D shares: 530/share

- Company E shares: 1,220/share

- Company F shares: 400/share

- Y bond: 995/tp

- T bond: 820/tp

Request :

1. For the annual accounting period, record and reflect the above transactions in the accounts.

2. Determine the financial performance results. Knowing that the units in which company X is holding shares do not change the size of charter capital.

Lesson 4

I. At the beginning of year N-1, account 2293 of company X has no balance.

II. On December 31, N-1, the bad debt situation of company X is as follows (Unit: million VND):

1. Receivables from A LLC (customer): 500; Company A has declared bankruptcy, Company A's estimated recovery rate is 40%.

2. Receivables from private company B (customer): 300, the business owner has absconded, company X determines the provision rate: 100%.

3. Receivables from Company C (customer): 200; overdue for 6 months, Company X determines the provision rate to be 30%.

4. Advance payment to D LLC (seller): 100, D company has declared bankruptcy, the provision rate is 30%.

III. In year N, company X has the following situation:

1. The owner of a private business (customer B) was arrested and tried by law enforcement agencies. According to the court's decision, company B paid the entire debt to company X (received in cash).

2. Company A's debt payment team pays company X: 200 by bank transfer; company X clears the remaining amount of company A's debt.

3. The debt payment team of company D pays company X 60 by bank transfer, the remaining amount of company D's debt is cleared by company X.

VI. Bad debt situation at the end of year N:

1. Receivables from Company C (customer): 200; overdue for payment for more than 1 year, Company X determines the provision rate: 50%.

2. Receivables from E LLC (seller): 300; overdue for 4 months, company X determines the provision rate: 30%.

3. Short-term deposit at L LLC: 100; L LLC declares bankruptcy, estimated recovery rate from L LLC is 40%.

Request :

1. Calculate the provision for doubtful debts and record the necessary accounting entries at 12/31/N-1.

2. Record and reflect transactions arising in year N into the account.

3. Calculate the provision for doubtful debts and record the necessary accounting entries at December 31, 2016.