dfs journal quesiton!

meibaker

i am struggle with dfs already, i can roughly remember how to do teh profit and loss a/c and balance sheet,but i seem to forget how to do the journal entries, please someone help me.SORRY FOR ASKING SILLY QUESTIONS!
Q. the inventories at the close of business on 30 june 2006 was valued at cost at 5162.
A: DR inventories- statment of financial position
CR inventories- income statment
Q: The tax charge for the year has been calculated as 1475
A: DR tax-- income statment
CR Tax payable -- statement of financial position
Q: an advertising campaign was undertaken durign the year at the cost of 22,000, no invoices has yet been received
A: DR distribution exp. -- income statment
CR accrual-- statment of financial position
Q: land has been revalued at 7,000, the revaluation is to be included in the fiancial statment for theyear ended 30 june 2006
A: DR- land-- statment of fiancial position
CR Revaluation reserve-- statment of fiancial position!
many thanks

beaneygirl

I don't understand the question. Your answers all seem o.k to me.

meibaker

these answers are the solution answers!

Bluewednesday

So what is your question?

Monsoon

A journal is an adjustment, changing the trial balance, to the final position that will be shown in the accounts (P&L and BS - or apparently, Income Statement and Statment of Financial Position, same difference).

If you have problems with it go back to basics of double entry
A debit is an expense in the P&L or an asset in the BS
A credit is an income in the P&L or a liability in the BS

The bottom half of the balance sheet is the opposite to the top:
A Debit is a reduction of Equity in the BS
A credit is an increase in Equity in the BS

Find one concept of these that you feel happy with, and use that as an anchor for working out the rest of the journal.

meibaker

Bluewednesday wrote: »

So what is your question?

i totally forget how the journal entries working.

meibaker

Monsoon wrote: »

A journal is an adjustment, changing the trial balance, to the final position that will be shown in the accounts (P&L and BS - or apparently, Income Statement and Statment of Financial Position, same difference).

If you have problems with it go back to basics of double entry
A debit is an expense in the P&L or an asset in the BS
A credit is an income in the P&L or a liability in the BS

The bottom half of the balance sheet is the opposite to the top:
A Debit is a reduction of Equity in the BS
A credit is an increase in Equity in the BS

Find one concept of these that you feel happy with, and use that as an anchor for working out the rest of the journal.

thanks,now i can remember some now! i will defo look up on my old books.