Bandaraike Manufacturing Company

Land and Building Accounts

December 31, 2015

Admin
Particulars Per books Land Building expense
Jan-31 Land and building 98,000 A 10,800 100,000 7,000
Frb-28 Cost of removal of old building 1,500 B 1,500 500 500
May-01 Partial payment of new construction 35,000 C 1,000 5,000
May-01 Legal feess 2,000 D 300
Jun-01 Second payment on new construction 30,000 C 2,500
Jun-01 Insurance premium 1,800 E
Jun-01 Special tax assesstment 2,500 F
Jul-01 General expenses 12,000 G
Jun-30 Final payment of new construction 35,000 C
Dec-31 Asset write up 12,500 H
Sub Total 230,300
Dec-31 Depreciation 2,300 I
228,000

Computation:

Cash 48,000
500 shares of stocks @ market value P120 per shares 60,000
108,000

#1 Land 108,000
Land and building A 98,000
Premium 10,000

#2 Land 1,500
Land and building B 1,500

#3 Building 100,000
Land and building C 100,000

Computation:

Cost of organiation 500

Purchase of land 1,000
Legal work 500
 2000

#4 Land 1,000
Organization cost 500
Building 500
Land and building D 2,000

#5 Insurance expense 900

Land ( 1,800/ 12 months x 2 months) 300
prepaid insurance 600
Land and Building E 1,800

#6 Land 2,500
Land and building F 2,500

#7 Buidling 5,000
Admin expense 7,000
Land and building G 12,000

#8 Retained earnings 12,500

Land and building H 12,500

#9 Land and building (230,000 x 1%) 2,300 I

Accumulated depreciation (105,800 x 1%) 1,058
Depreciation (1,058 - 2,300) 1,242
Insurance Prepaid Retained Allowance Additional paid Adjusted
expense Insurance earnings Total in capital Depreciation Balance
600 900 12,500 1,058 10,000 1,242