Use the following account codes, determine which accounts to be Dr.Cr.if you hav

Question

Use the following account codes, determine which accounts to be Dr.Cr.if you have to journalize transactions a. to e.: 01 Cash 02 Dividend 03 Share capital- ordinary shares 04 Share capital -preference shares 05 Share premium : ordinary shares 06 Share premium: treasury shares 07 Dividend payable 08 Treasury shares Dr. Cr. Transaction a. Issued ordinary shares for an amount above par value b. Declared cash dividends on ordinary shares to be paid out next month. c. Paid cash dividends of b. above on ordinary shares. d. Purchased treasury shares e. Re-issued treasury shares above cost

Explanation / Answer

Transaction

Dr.

Cr.

a.

Issued ordinary shares for an amount above par value

01 Cash

03 Share capital – ordinary shares &

05 Share premium: ordinary shares

b.

Declared cash dividends on ordinary shares to be paid out next month.

02 Dividend

07 Dividend payable

c.

Paid cash dividends of (b) above on ordinary shares.

07 Dividend payable

01 Cash

d.

Purchased treasury shares

08 Treasury shares

01 Cash

e.

Re-issued treasury shares above cost

01 Cash

08 Treasury shares & 06 Shares premium: treasury shares

Transaction

Dr.

Cr.

a.

Issued ordinary shares for an amount above par value

01 Cash

03 Share capital – ordinary shares &

05 Share premium: ordinary shares

b.

Declared cash dividends on ordinary shares to be paid out next month.

02 Dividend

07 Dividend payable

c.

Paid cash dividends of (b) above on ordinary shares.

07 Dividend payable

01 Cash

d.

Purchased treasury shares

08 Treasury shares

01 Cash

e.

Re-issued treasury shares above cost

01 Cash

08 Treasury shares & 06 Shares premium: treasury shares

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.