BALANCE

ASSETS CLAIMS

Fixed Assets 300 100

Current Assets: 400

inventory 50
receivables 24
cash

TOTAL ASSETS

Find numbers in coloured cells

CLAIMS

Equity

Liabilities

TOTAL CLAIMS
 1

3
4
5
6
7

8
9
10
11
EXAMPLE – Rita’s company “ABC” transactions

On Dec 1, 20X1 Rita contributed 2.500 Eur into company “ABC” share capital and became sole shareholder of this
company. The company provides transportation services. Document: receipt No.2222222222, issued by SEB bank

On Dec-03 Rita’s dad and mom borrowed her company 6.000 Eur. Document: loan agreement, issued by Mom &
Dad
On Dec-06 company purchased office equipment for cash. It costed 400 Eur. Document:
On Dec-06 purchased second-hand van for 4.500 Eur on credit. The payment is due in 25 days. Document:
On Dec-06 purchased gasoline for 100 Eur.
On Dec-15 earned the first revenue. The client paid 40 Eur in cash for transportation services.

On Dec-20 another client was billed for 60 Eur for services provided. The client’s payment is due in 10 days.

On Dec-31 company “ABC” paid for van purchased.

On Dec-31 the client paid his bill.
On Dec-31 company paid 1.100 Eur to the van driver.
The van has run 70 km during December. It consumes 9 l of the gas for each 100 km. The gas costs 1,00 Eur per 1 l.
Write-off to expenses the cost of the gas used. (___ Eur)

ASSIGNMENT: Open accounts required. Register all transactions in the register (table on page 7). Prepare trial
balance on page 9 (top). Prepare finance reports for the year 20X1 – Profit or loss report, and Balance sheet – on
page 9 (bottom).
 UAB "ABC" economic transaction register. December, 20X1
A D E F G H I J L M N O
1 ASSETS = CLAIMS
2 Fixed assets Current assets Equity Liabilities
Transaction Office Accounts Rita's share Debt to Dad Accounts
3 Van Inventory Cash Revenue Expenses
No. equipment Receivable capital & Mom Payable
4
5
6 1 =
7 Balance1 = ###
8 2 =
9 Balance2 = ###
10 3 =
11 Balance3 = ###
12 4 =
13 Balance4 = ###
14 5 =
16 6 =
18 7 =
20 8 =
22 9 =
24 10 =
25 11 =
27
28 Balance11 = ###
29
 COMPANY "ABC"
TRIAL BALANCE
As of Dec.31, 20X1

Account Title Assets, Claims,

€ €
Van
Office Equipment
Inventory
Accounts Receivable
Cash
Rita's Share Capital
Debt to Dad & Mom
Accounts Payable
Revenue
Expenses
Total
Balance, € Balance, €
Dr Cr Dr; Cr(-)
 UAB "ABC"
Profit (or Loss) Report
(Income Statement)
For the period
beginning Dec.1, 20X1
and finishing Dec.31, 20X1

Revenue (5)
-Expenses * (6)
Profit (or
Loss) (3)

*) write expenses with minus sign or in parenthesis

 UAB "ABC"
BALANCE SHEET
as of Dec.31, 20X1
ASSETS
Fixed assets (1)
Vehicles
Equipment

Current assets (2)

Inventory
Accounts Receivable
Cash

Total assets:

parenthesis
E SHEET
.31, 20X1
CLAIMS
Equity (3)
Share Capital
Retained Earnings

Liabilities (4)
Financial (Long-term)
Accounts Payable (Current)

Total claims:
 UAB "ABC" transaction register. December 20X1
A B C D E F G H
ASSETS I J K L
= M N O P Q
CLAIMS R S T U V
1
2 FIXED (LONG-TERM) ASSETS CURRENT ASSETS EQUITY LIABILITIES

OFFICE ACCOUNTS RITA'S SHARE REVENUE COSTS DEBT TO DAD & ACCOUNTS
3 VAN INVENTORY CASH
TRANSACTION EQUIPMENT RECEIVABLE CAPITAL (SALES) (EXPENSES) MOM PAYABLE
No.
4 Debit Credit
record record Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
5
6 1 =
8 2 =
10 3 =
12 4 =
14 5 =
15 Turnover5 =
16 Balance 5 =
17 6 =
19 7 =
21 8 =
23 9 =
25 10 =
26 11 =
27 Turnover11 =
28
29 Balance 11
30
 UAB "CALL US!"
Trial Balance
As of March-31, 20X1

Account
Account title Balance, €
Cash (asset) 27,640
Receivables (asset) 42,380
Office suppliess (asset) 9,050
Office rent expense prepay (asset) 8,020
Equipment insurance prepay (asset) 7,220
Office equipment (asset) 23,020
Telecommunication equipment (asset) 24,020
Payables (liability) 26,750
Clients’ prepays (liability) 17,770
John’s share capital (equity) 59,350
Sales (revenue) 60,040
Wages expense
Office cleaning expenses 3,470

Determine missing balance of the Answer:

account "Wages expense"
31, 20X1

Debet Credit

0
 UAB "ABC" transaction register for December, 20X1: T-accounts

Cash Trans.No. Rita's share capital Trans.No. Debt to Dad & Mom
Trans.No. Dr Cr

Turnover 11 Turnover 11

Balance 11 Balance 11

Trans.No. Office equipment

Trans.No. Accounts Payable

Turnover 11

Turnover 11 Balance 11 Turnover 11

Balance 11 Balance 11

Trans.No. Revenue
Trans.No. Van Trans.No. Expenses

Turnover 11

Turnover 11 Balance 11 Turnover 11

Balance 11 Closing Balance 11

Closing

Trans.No. Inventory Afterclosing Balance

Afterclosing
Balance

Trans.No. Summary
Turnover 11 Trans.No.

Balance 11

Trans.No. Accounts Receivable Turnover

Balance
 APPROVED by Director (Rita)
Company “ABC” chart of accounts 20X1.12.31

Account code Account title Account type

Van Fixed tangible asset
Office equipment -“-
Inventory Current asset
Accounts receivable -“-
Cash -“-
Rita’s share capital Equity
Summary -“-
Debt to Dad & Mom Liability
Accounts payable -“-
Revenue Revenue, sales
Expenses Costs, expenses
Van, accumulated depreciation Fixed tangible asset, contra accounts
Office equipm., accumul.depreciation Fixed tangible asset, contra accounts
page 14 UAB "ABC" GENERAL JOURNAL, in Eur
company ID 777777777
Entry Transaction or
entry date Transaction description Account No. Post Dr Cr
No.

Total: 0 0
pages 15-16 UAB "ABC" GENERAL LEDGER DIDŽIOJI KNYGA
company ID 777777777
Account Van Balance, rules on p.10
Entry No. Date Description Dr Cr Dr Cr

Account Office Equipment Balance

Entry No. Date Description Dr Cr Dr Cr

Account Inventory Balance

Entry No. Date Description Dr Cr Dr Cr

Account Accounts Receivable Balance

Entry No. Date Description Dr Cr Dr Cr

Account Cash Balance

Description: where info comes Dr Cr Dr Cr
Entry No. Date from?

Account Rita's Share Capital Balance

Entry No. Date Description Dr Cr Dr Cr

17/23
pages 15-16 UAB "ABC" GENERAL LEDGER DIDŽIOJI KNYGA
company ID 777777777
Account Summary Balance
Entry No. Date Description Dr Cr Dr Cr

Account Debt to Dad & Mom Balance

Entry No. Date Description Dr Cr Dr Cr

Account Accounts Payable Balance

Entry No. Date Description Dr Cr Dr Cr

Account Revenue Balance

Entry No. Date Description Dr Cr Dr Cr

Account Costs (Expenses) Balance

Entry No. Date Description Dr Cr Dr Cr

Account Rita's debt to "ABC" Balance

Entry No. Date Description Dr Cr Dr Cr

Account Interest expense Balance

Entry No. Date Description Dr Cr Dr Cr

Account Accrued interest expense Balance

18/23
pages 15-16 UAB "ABC" GENERAL LEDGER DIDŽIOJI KNYGA
company ID 777777777
Entry No. Date Description Dr Cr Dr Cr

19/23
UAB "ABC" Trial Balance as of 20X1.12.31
Adjustments, because of the time
Nonadjusted Trial Balance Adjusted Trial Balance Profit (or Loss) Report Balance
pressure and to fix accruals
Account Title Account
No Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

FIXED ASSETS
Van
Van, accumulated depreciation
Office equipment
Off.equipm., accumul.depreciation

CURRENT ASSETS
Inventory
Accounts receivable
Cash

EQUITY
Rita's share capital
Summary

LIABILITIES
Debt to Dad & Mom
Accounts payable

REVENUE
Revenue

EXPENSES
Costs (Expenses)

Rita' debt to the company

(current asset)
Interest expense
Accrued interest expense
(interest liability to dad &
mom)

Profit Loss 0
 Form of Profit (loss) account

Closed Joint Stock Company "ABC", 777777777

(the legal form, the name, the code of the entity)

Paradise str. 666, Heaven, data is being accumulated and stored in Register of Legal Entities
(address, register where data about the entity is collected and kept)

(legal status if the entity is in liquidation, reorganisation or is bankrupt)

Approved by shareholders' meeting

March 31, 20X2

PROFIT AND LOSS ACCOUNT as at DECEMBER 31, 20X1

February 15, 20X2 No. 27
(reporting date)

Year Euro
(reporting period) (Reporting currency, specify degree of
accuracy)
Article Article Notes No. Reporting Previous reporting
No. period period
1. Net turnover 500000
2. Cost of sales (300000)
3. Fair value adjustments of the biological assets
4. GROSS PROFIT (LOSS) 1+2+3 - 200000
5. Selling expenses (30000)
6. General and administrative expenses (70000)
7. Other operating results 40000
8. Income from investments in the shares of parent, subsidiaries and
associated entities 12000
9. Income from other long-term investments and loans 2000
10. Other interest and similar income 3000
11. The impairment of the financial assets and short-term investments (50000)
12. Interest and other similar expenses (1000)
13. PROFIT (LOSS) BEFORE TAXATION 4+5+6+7+8+
9+10+11+12 - 106000
14. Tax on profit 13 * 15% (15900)
15. NET PROFIT (LOSS) 13 + 14 - 90100
Expenses should be written with minus sign or in parenthesis.
Director _______________ Rita
(title of the head of entity administration) (signature) (name, surname)

Accountant _______________
(title of the chief accountant (accountant) or (signature) (name, surname)
of other person responsible for accounting)
 Form of Balance sheet
Closed Joint Stock Company "ABC", 777777777
(the legal form, the name, the code of the entity)

Paradise str. 666, Heaven, data is being accumulated and stored in Register of Legal Entities
(address, register where data about the entity is collected and kept)

(legal status if the entity is in liquidation, reorganisation or is bankrupt)

Approved by shareholders' meeting
March 31, 20X2
BALANCE SHEET as at DECEMBER 31, 20X1
February 15, 20X2 No. 27
(reporting date)
Year Euro
(reporting period) (Reporting currency, specify degree of
accuracy)

Article Notes No. Reporting Previous

Article
No. period reporting period

ASSETS
A. FIXED ASSETS 160,250
1. Intangible assets 7,050
2. Tangible assets 103,200
3. Financial assets 50,000
4. Other fixed assets 0
B. CURRENT ASSETS
1. Stocks 43,000
2. Amounts receivable within one year 12,500
3. Short-term investments 7,000
4. Cash and cash equivalents
C. PREPAYMENTS AND ACCRUED INCOME 0
TOTAL ASSETS
REQUITY AND LIABILITIES
D. EQUITY 184,000
1. Capital 75,000
2. Share premium account 0
3. Revaluation reserve 0
4. Reserves 16,000
5. Retained profit (loss) 93,000
E. GRANTS, SUBSIDIES 0
F. PROVISIONS 0
G. AMOUNTS PAYABLE AND OTHER LIABILITIES 95,100
1. Amounts payable after one year and other long-term liabilities 35,000
2. Amounts payable within one year and other short-term liabilities 60,100
H. ACCRUALS AND DEFERRED INCOME 0
TOTAL EQUITY AND LIABILITIES 279,100

Director __________________ Rita

(title of the head of entity administration) (signature) (name, surname)

Accountant __________________
(title of the chief accountant (accountant) or (signature) (name, surname)
of other person responsible for accounting)
 1. Collect and
analyse
information
p.6
2. Registered data
7. Close revenue in General Journal
and expense p.7, 8
accounts p.14
p.7, 8
p.14, 15-16

FINANCIAL
ACCOUNTING 3. Post transaction
6. Prepare financial CYCLE entries from GJ to
reports General Ledger
p.9 p.7, 8
p.18-20 p.15-16

5. Make ajustments, prepare ajusted

Triel Balance. Register ajustments 4. Prepare Trial
in GJ and post then to GL
p.17 p.14, 15-16
Balance
p.9
p.17