Question

Exercise 1. The following information is available for company ABC as of 31December N:

Land                   500
Additional paid in capital (share premium)         150
Advance payments to suppliers (from which for inventories 200)             300
Licenses             50
Customers         600
Prepayments     80
Legal reserve     70
Dividends payable          100
Depreciation of plant and machinery     50
Investments in associates                        700
Issued capital paid in (Share capital paid in)       ??
Sundry debtors               100
Raw materials                 60
Plant and machinery      700
Long term bank loans (of which becoming due in less than one year 150)        525
Write downs of raw materials                 5
Cash at bank     30
Provisions for guarantees to customers               500
VAT payable                   50
Long term receivables   100
Buildings                         300
Development costs (assets recognition criteria are fulfilled)             100
Other reserves                700
Salaries payable             200
Depreciation of buildings           50
Short term bank loans                150
Finished goods               180
Profit for the period       250
Advances received from customer          100
Short term financial investments            150
Suppliers payable           100
Bills of exchange payable            30
Other taxes payable      50
Deferred income (venituri amanate)      100

Required:
a. Draw up the balance sheet
b. Calculate issued capital (paid in capital).

Exercise 2. Using the following elements prepare an income statement by function and by nature (you must obtain the same result with both method.

1. Personal expenses 650

a.1. for production 400

a.2. for distribution 150

a.3. for administration 100

2. Interest expenses 40
3. row material expenses 150
4. income tax expenses 150
5. merchandise expenses 10
6. consumable expenses 300

f.1. for production 200

f.2. for distribution 70

f.3. for administration 30

7. Finish goods revenues 1.400
8. Other op expenses.210
9. Financial expenses 46
10. Other taxes expenses 20
11. Finish goods -31.12.N 200
12. Costs CSS 210:

l.1. for production 130

l.2. for distribution 50

l.3. for administration 30

13. INTEREST REVENUE 60
14. Services expenses 10
15. other financial revenue 10
16. seles revenue 50
17. depreciation expenses 250

q.1. for production 180

q.2. for distribution 20

q.3.for administration 50

18. revenue from dividends 120

Answer 1

b) Issued paid up capital = 70