Financial Accounting: Advanced

ADVANCED FINANCIAL ACCOUNTING 1
ADVANCED FINANCIAL
ACCOUNTING

ADVANCED FINANCIAL ACCOUNTING 2
Answer 1:
The following are the desired journal entries:
Case a:
Shareholdi
ng Particulars Debit Credit
10% January 1, 2018 Investment in Ioniq
2,00,000.
00
Brokerage
2,000.
00
Cash
2,02,000.
00
March 31, 2018 Cash
10,000.
00
Dividend income
10,000.
00
20% July 1, 2018 Investment in Ioniq
2,20,000.
00
Brokerage
2,200.
00
Cash
2,22,200.
00

ADVANCED FINANCIAL ACCOUNTING 3
July 1, 2018 Cash
24,000.
00
Dividend income
24,000.
00
November 30,
2018 Cash
2,40,000.
00
Brokerage
2,400.
00
Investment in Ioniq
2,00,000.
00
Profit on sale of
investment
42,400.
00
10%
December 31,
2018 Unrealised gain
50,000.
00
Profit and loss
50,000.
00
December 31,
2018 Investment in Ioniq
24,000.
00
Share of profit
in Ioniq
24,000.
00

ADVANCED FINANCIAL ACCOUNTING 4
Case b: