1

Chapter 9
Assignment

Exercise 1

Required:
- Record all journal entries that result from the following information in the journal of MONCHAN for the
accounting years 20X1, 20X3 and 20X4 (including end-of-period entries, if needed). The closing date of
the accounting year is December 31st .
- For this building complete the extracts of the financial statements 20X4 of MONCHAN.

01/01/20X1 Misc. Doc. 001 Notarial act dd. 01/01/20X1

MONCHAN acquires a building for an amount of 700 000,00 EUR. MONCHAN decides to depreciate the
building over 25 years employing the declining balance (DB) method. The residual value of the building is
estimated at 150 000,00 EUR. The adopted DB rate amounts to 6,2%. The notary charges and registration
rights amount to 50 000,00 EUR. No VAT applicable.

01/01/20X3 Misc. Doc. 001 valuation report dd. 01/01/20X3

An expert estimates the value of the building at 800 000,00 EUR. MONCHAN decides to restate the value of
the building in its accounts to the figure mentioned in the valuation report. The (remaining) useful life and
estimated residual value of the building are unaltered. This implies a new DB rate equalling 7 %.

01/01/20X4 - Miscellaneous document 20X4/002

Due to a reduction in its activities, MONCHAN decides to let the building to another company (i.e., another
company will rent the building from MONCHAN).

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 2

N° Acc.n° D Acc.n° C Description D C

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 3

Nr. C-cap 3.1

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 4

Nr. C-cap 6.3.1

STATEMENT OF TANGIBLE FIXED ASSETS

Codes Period Previous period

LAND AND BUILDINGS

Acquisition value at the end of the period ................................................. 8191P Xxxxxxxxxxxxxxxxx .................................

Movements during the period

Acquisitions, including produced fixed assets .......................................
8161 ..................................
Sales and disposals ................................................................................ 8171 ..................................
Transfers from one heading to another ....................................... (+)/(-) 8181 ..................................

Acquisition value at the end of the period ................................................. 8191 ..................................

Revaluation surpluses at the end of the period ......................................... 8251P Xxxxxxxxxxxxxxxxx .................................

Movements during the period

Recorded ............................................................................................... 8211 ..................................
Acquisitions from third parties .............................................................. 8221 ..................................
Cancelled ............................................................................................... 8231 ..................................
Transfers from one heading to another ....................................... (+)/(-) 8241 ..................................

Revaluation surpluses at the end of the period ......................................... 8251 ..................................

Depreciation and amounts written down at the end of the period ..........
8321P Xxxxxxxxxxxxxxxxx .................................

Movements during the period

Recorded ............................................................................................... 8271 ..................................
Written back .......................................................................................... 8281 ..................................
Acquisitions from third parties .............................................................. 8291 ..................................
Cancelled owing to sales and disposals ................................................. 8301 ..................................
Transfers from one heading to another ....................................... (+)/(-) 8311 ..................................

Depreciation and amounts written down at the end of the period ..........
8321 ..................................

NET BOOK VALUE AT THE END OF THE PERIOD ............................................. (22) ..................................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 5

Nr. C-cap 6.3.5

Codes Period Previous period

OTHER TANGIBLE FIXED ASSETS

Acquisition value at the end of the period ................................................. 8195P Xxxxxxxxxxxxxxxxx .................................

Movements during the period

Acquisitions, including produced fixed assets .......................................
8165 ..................................
Sales and disposals ................................................................................ 8175 ..................................
Transfers from one heading to another ....................................... (+)/(-) 8185 ..................................

Acquisition value at the end of the period ................................................. 8195 ..................................

Revaluation surpluses at the end of the period ......................................... 8255P Xxxxxxxxxxxxxxxxx .................................

Movements during the period

Recorded ............................................................................................... 8215 ..................................
Acquisitions from third parties .............................................................. 8225 ..................................
Cancelled ............................................................................................... 8235 ..................................
Transfers from one heading to another ....................................... (+)/(-) 8245 ..................................

Revaluation surpluses at the end of the period ......................................... 8255 ..................................

Depreciation and amounts written down at the end of the period ..........
8325P Xxxxxxxxxxxxxxxxx .................................

Movements during the period

Recorded ............................................................................................... 8275 ..................................
Written back .......................................................................................... 8285 ..................................
Acquisitions from third parties .............................................................. 8295 ..................................
Cancelled owing to sales and disposals ................................................. 8305 ..................................
Transfers from one heading to another ....................................... (+)/(-) 8315 ..................................

Depreciation and amounts written down at the end of the period ..........
8325 ..................................

NET BOOK VALUE AT THE END OF THE PERIOD ............................................. (26) ..................................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 6

Nr. C-cap 4

INCOME STATEMENT

Notes Codes Period Previous period

Operating income .............................................................. 70/76A .............................. ..............................

Turnover ........................................................................ 6.10 70 .............................. ..............................
Increase (decrease) in stocks of finished goods, work
and contracts in progress ..................................... (+)/(-) 71 .............................. ..............................
Own construction capitalised ......................................... 72 .............................. ..............................
Other operating income ................................................. 6.10 74 .............................. ..............................
Non-recurring operating income .................................... 6.12 76A .............................. ..............................

Operating charges............................................................. 60/66A .............................. ..............................

Goods for resale, raw materials, consumables .............. 60 .............................. ..............................
Purchases ................................................................ 600/8 .............................. ..............................
Decrease (increase) in stocks ......................... (+)/(-) 609 .............................. ..............................
Services and other goods .............................................. 61 .............................. ..............................
Remuneration, social security and pensions ........ (+)/(-) 6.10 62 .............................. ..............................

Depreciation of and amounts written off formation

expenses, intangible and tangible fixed assets ..............
630 .............................. ..............................
Amounts written down stocks, contracts in progress
and trade debtors – Incease (decrease) ............... (+)/(-)
6.10 631/4 .............................. ..............................
Provisions for risks and charges – Increase (decrease)
.............................................................................. (+)/(-) 6.10 635/7 .............................. ..............................
Other operating charges ................................................ 6.10 640/8 .............................. ..............................
Operating charges carried to assets as restructuring
costs ........................................................................... (-) 649 .............................. ..............................
Non-recurring operating charges ................................... 6.12 66A .............................. ..............................

Operating profit (loss).............................................. (+)/(-) 9901 .............................. ..............................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 7

Exercise 2

Required:
- Record all journal entries that result from the following information in the journal of MONCHAN for the
accounting years 20X1, 20X3 and 20X6 (including end-of-period entries, if needed). The closing date of the
accounting year is December 31st.
- What balances related to this machine are to be found in the financial statements 20X5 and 20X6 of
MONCHAN?

01/01/20X1 Purchase invoice no. X1/001

MONCHAN acquires a machine for an amount of 250 000,00 EUR (excluding 21% VAT). MONCHAN decides to
depreciate the machine over 10 years employing the straight-line method. The residual value of the machine is
estimated at 10 000,00 EUR.

01/01/20X3 Purchase invoice no. X3/001

The engine of the machine had to be adjusted. The investment amounted to 50 000,00 EUR (excluding 21% VAT).
[The new engine has no impact on the useful life of the machine, nor on its residual value.]

01/01/20X6 Sales invoice no. X6/001

The machine is sold for an amount of 100 000,00 EUR (excluding 21% VAT).

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 8

N° Acc.n° D Acc.n° C Description D C

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 9

N° Acc.n° D Acc.n° C Description D C

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 10

Nr. FINANCIAL STATEMENTS 20x5 C-cap 3.1

Nr. FINANCIAL STATEMENTS 20x5 C-cap 4

INCOME STATEMENT

Notes Codes Period Previous period

Operating income ............................................................... 70/76A .............................. ..............................

Turnover ......................................................................... 6.10 70 .............................. ..............................
Increase (decrease) in stocks of finished goods, work
and contracts in progress ..................................... (+)/(-) 71 .............................. ..............................
Own construction capitalised .......................................... 72 .............................. ..............................
Other operating income .................................................. 6.10 74 .............................. ..............................
Non-recurring operating income ..................................... 6.12 76A .............................. ..............................

Operating charges.............................................................. 60/66A .............................. ..............................

Goods for resale, raw materials, consumables ............... 60 .............................. ..............................
Purchases ................................................................. 600/8 .............................. ..............................
Decrease (increase) in stocks ......................... (+)/(-) 609 .............................. ..............................
Services and other goods ............................................... 61 .............................. ..............................
Remuneration, social security and pensions ........ (+)/(-) 6.10 62 .............................. ..............................

Depreciation of and amounts written off formation

expenses, intangible and tangible fixed assets...............
630 .............................. ..............................
Amounts written down stocks, contracts in progress
and trade debtors – Incease (decrease) ............... (+)/(-)
6.10 631/4 .............................. ..............................
Provisions for risks and charges – Increase (decrease)
............................................................................. (+)/(-) 6.10 635/7 .............................. ..............................
Other operating charges ................................................. 6.10 640/8 .............................. ..............................
Operating charges carried to assets as restructuring
costs ........................................................................... (-) 649 .............................. ..............................
Non-recurring operating charges .................................... 6.12 66A .............................. ..............................

Operating profit (loss).............................................. (+)/(-) 9901 .............................. ..............................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 11

C-cap
Nr. FINANCIAL STATEMENTS 20x5 6.3.2

Codes Period Previous period

PLANT, MACHINERY AND EQUIPMENT

Acquisition value at the end of the period .................................... 8192P xxxxxxxxxxxxxxxxx ..............................

Movements during the period

Acquisitions, including produced fixed assets..............................
8162 ..............................
Sales and disposals ..................................................................... 8172 ..............................
Transfers from one heading to another............................... (+)/(-) 8182 ..............................

Acquisition value at the end of the period .................................... 8192 ..............................

Revaluation surpluses at the end of the period............................ 8252P xxxxxxxxxxxxxxxxx ..............................

Movements during the period

Recorded ..................................................................................... 8212 ..............................
Acquisitions from third parties ..................................................... 8222 ..............................
Cancelled..................................................................................... 8232 ..............................
Transfers from one heading to another............................... (+)/(-) 8242 ..............................

Revaluation surpluses at the end of the period............................ 8252 ..............................

Depreciation and amounts written down at the end of the

period ............................................................................................... 8322P xxxxxxxxxxxxxxxxx ..............................

Movements during the period

Recorded ..................................................................................... 8272 ..............................
Written back................................................................................. 8282 ..............................
Acquisitions from third parties ...................................................... 8292 ..............................
Cancelled owing to sales and disposals ...................................... 8302 ..............................
Transfers from one heading to another............................... (+)/(-) 8312 ..............................

Depreciation and amounts written down at the end of the

period ............................................................................................... 8322 ..............................

NET BOOK VALUE AT THE END OF THE PERIOD............................. (23) ..............................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 12

Nr. FINANCIAL STATEMENTS 20X6 C-cap 3.1

Nr. FINANCIAL STATEMENTS 20X6 C-cap 4

INCOME STATEMENT

Notes Codes Period Previous period

Operating income ............................................................... 70/76A .............................. ..............................

Turnover ......................................................................... 6.10 70 .............................. ..............................
Increase (decrease) in stocks of finished goods, work
and contracts in progress ..................................... (+)/(-) 71 .............................. ..............................
Own construction capitalised .......................................... 72 .............................. ..............................
Other operating income .................................................. 6.10 74 .............................. ..............................
Non-recurring operating income ..................................... 6.12 76A .............................. ..............................

Operating charges.............................................................. 60/66A .............................. ..............................

Goods for resale, raw materials, consumables ............... 60 .............................. ..............................
Purchases ................................................................. 600/8 .............................. ..............................
Decrease (increase) in stocks ......................... (+)/(-) 609 .............................. ..............................
Services and other goods ............................................... 61 .............................. ..............................
Remuneration, social security and pensions ........ (+)/(-) 6.10 62 .............................. ..............................

Depreciation of and amounts written off formation

expenses, intangible and tangible fixed assets...............
630 .............................. ..............................
Amounts written down stocks, contracts in progress
and trade debtors – Incease (decrease) ............... (+)/(-)
6.10 631/4 .............................. ..............................
Provisions for risks and charges – Increase (decrease)
............................................................................. (+)/(-) 6.10 635/7 .............................. ..............................
Other operating charges ................................................. 6.10 640/8 .............................. ..............................
Operating charges carried to assets as restructuring
costs ........................................................................... (-) 649 .............................. ..............................
Non-recurring operating charges .................................... 6.12 66A .............................. ..............................

Operating profit (loss).............................................. (+)/(-) 9901 .............................. ..............................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023

 13

C-cap
Nr. FINANCIAL STATEMENTS 20X6 6.3.2

Codes Period Previous period

PLANT, MACHINERY AND EQUIPMENT

Acquisition value at the end of the period .................................... 8192P xxxxxxxxxxxxxxxxx ..............................

Movements during the period

Acquisitions, including produced fixed assets..............................
8162 ..............................
Sales and disposals ..................................................................... 8172 ..............................
Transfers from one heading to another............................... (+)/(-) 8182 ..............................

Acquisition value at the end of the period .................................... 8192 ..............................

Revaluation surpluses at the end of the period............................ 8252P xxxxxxxxxxxxxxxxx ..............................

Movements during the period

Recorded ..................................................................................... 8212 ..............................
Acquisitions from third parties ..................................................... 8222 ..............................
Cancelled..................................................................................... 8232 ..............................
Transfers from one heading to another............................... (+)/(-) 8242 ..............................

Revaluation surpluses at the end of the period............................ 8252 ..............................

Depreciation and amounts written down at the end of the

period ............................................................................................... 8322P xxxxxxxxxxxxxxxxx ..............................

Movements during the period

Recorded ..................................................................................... 8272 ..............................
Written back................................................................................. 8282 ..............................
Acquisitions from third parties ...................................................... 8292 ..............................
Cancelled owing to sales and disposals ...................................... 8302 ..............................
Transfers from one heading to another............................... (+)/(-) 8312 ..............................

Depreciation and amounts written down at the end of the

period ............................................................................................... 8322 ..............................

NET BOOK VALUE AT THE END OF THE PERIOD............................. (23) ..............................

FINANCIAL ACCOUNTING B – CHAPTER 9 2022-2023