EXERCISE Nº 5

1. The company GRD, S.A purchases some tools for € 4,500. The supplier gives a
bonus of €120. The company pays by bank transfer.
2. The same company buys a car for € 20,000. The registration tax is € 1,400 and
registration fees € 470. The payment is made by bank transfer.
3. The company ABC, S.A. purchases a lorry by bank transfer for the transport of
dangerous products. The cost of this lorry is €23,000 and registration costs €
2,100. Its lifetime is 4 years, and at the end of this period the company will have
to pay € 3,900 for its removing. Interest rate 5%.
4. Next year the company will have to update the “provision”. How will the entry
be?
5. A company sends to a supplier €3,600 (VAT INCLUDED) as pay in advance. The
company wants to buy a car.
6. Two months later, the company gets the car for € 18,700. It is paid by bank
transfer.
7. Purchase of machinery for € 50,000. The invoice includes a commercial discount
of 5%. The transport cost and insurance are €2,000 and €500. At the end of its
lifetime, the company estimates to be a removing cost of €3,000 (Interest rate
4%, and the life time is believed 4 years).
8. Purchase in cash a machine for €12,000. The installation cost is € 1,100 that it
will be paid 3 months later.
9. A company purchased 5 computers for € 1,500 each. The transport costs were
€30. Everything was paid by bank transfer.
10. Purchase on credit machinery for €130,000. The lifetime is estimated in 5 years.
At the end of this period the removing cost is estimated in €20,000. Interest rate
3%
11. A company buys a piece of land on credit for €100.000. It will be paid half within
3 months and the rest 2 years later.
12. For levelling, the company has paid € 3,000 by cheque.
13. In this piece of land, the company wants to build a warehouse, so it hires a
construction company and pays € 30,000 by cheque.
14. The construction company finishes the warehouse and sends us a new invoice
for €40,000. This is paid with a bill of exchange with an expiry date of 2 years.
15. The air condition installation of our office has been paid by bank transfer
(€2,300).