Accounting Entries – NBC Institute

CR – May 2019 – L3 – Q4 – Employee Benefits (IAS 19)

Classify a post-employment benefit plan, reconcile plan obligations, and explain the treatment of re-measurement gains or losses in line with IAS 19.

Question

The Central Bank of Kangora (CBK) operates a post-employment benefit plan whereby employees are entitled to an amount upon completion of employment. Each employee is paid an amount equal to 150% of the annual pay at the time of retirement multiplied by the number of years in service. The plan is not funded.

CBK uses a professional actuary to determine its liability under the plan at the end of every reporting period. The report of the actuary shows that the plan obligation was ₦620 million and ₦906 million as at 1 January, 2018 and 31 December, 2018 respectively. The current and past service cost for the year was ₦108 million. The discount rates were 8% and 12% as at 1 January, 2018 and 31 December, 2018 respectively.

CBK paid a total benefit of ₦48 million during the year.

The financial controller is struggling to complete the reconciliation and accounting entries for the plan. He is particularly confused about the concept of re-measurement and its accounting treatment.

Required:
a. Differentiate between a defined contribution plan and a defined benefit plan and advise CBK on how its post-employment plan should be classified. (5 Marks)
b. Complete the reconciliation and show the journal entries required to record the transactions for the year ended 31 December, 2018. (10 Marks)
c. Discuss the components of re-measurement gain or loss and state the accounting treatment of a re-measurement gain or loss arising on a defined benefit plan. (5 Marks)

Answer

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Tags: Accounting Entries, Defined benefit plans, Defined Contribution Plans, Re-measurements
Level: Level 3

Topic: Employee Benefits (IAS 19)

FA – Nov 2012 – L1 – SA – Q29 – Partnership Accounts

Identifying the necessary accounting entries when a partner takes over an asset upon dissolution.

Question

In partnership dissolution, what are the necessary accounting entries to record an asset taken over by a partner?

Answer

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Tags: Accounting Entries, Assets, Dissolution, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2012

FA – May 2014 – L1 – SA – Q20 – Correction of errors

Determines the missing amount in the partner’s current account.

Question

What is the value of the item in the Current Account marked “X”?
A. ₦8,700
B. ₦13,060
C. ₦15,700
D. ₦16,000
E. ₦17,400

Answer

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Tags: Accounting Entries, Corrections, Current Account, Partnership
Level: Level 1

Topic: Correction of errors
Series: MAY 2014

FA – May 2014 – L1 – SA – Q13 – Partnership Accounting

Determines the correct accounting entries for a partner's salary payment

Question

The accounting entries for salary paid or payable to a partner are:
A. Debit Profit or Loss Appropriation Account; Credit Partner’s Current Account
B. Debit Partner’s Current Account; Credit Profit or Loss Account
C. Debit Partner’s Current Account; Credit Profit or Loss Account
D. Debit Partner’s Capital Account; Credit Profit or Loss Account
E. Debit Partner’s Salary Account; Credit Profit or Loss Appropriation Account

Answer

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Tags: Accounting Entries, Partner's Salary, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2014

FA – May 2014 – L1 – SA – Q12 – Accounting for Inventories (IAS 2)

Identifies the accounting treatment for losses or stolen goods on consignment.

Question

What are the accounting entries on consignment for stolen or lost goods?
A. Debit- Consignment Account; Credit- Profit or Loss or Insurance Account, if insured
B. Debit- Profit or Loss or Insurance Account, if insured; Credit- Consignment Account in the consignor’s ledger
C. Debit- Cash Account; Credit- Consignment Account
D. Debit- Goods in Transit Account; Credit- Consignment Account in consignee’s ledger
E. Debit- Consignment Accounts; Credit- Insurance Accounts

Answer

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Tags: Accounting Entries, Consignment, Financial Transactions, Losses
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: MAY 2014

FA – Nov 2013 – L1 – SB – Q6 – Accounting Concepts

Recording royalty and short-working transactions in the landlord's books.

Question

Fatai leased his quarry site to EML Limited to mine granite at a dead rent of N2,000,000 per annum. The royalty payable per metric tonne was agreed at N100. Short-workings could be recovered in the first four years of the lease only, while irrecoverable short-workings are regarded as a loss.

The output of the granite for the first five years was as follows:

Year	Output (Metric Tonnes)
2008	12,000
2009	15,000
2010	22,000
2011	26,000
2012	30,000

You are required to:
Record the above transactions in the landlord’s books for the first five years of the contract.
(15 Marks)

Answer

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Tags: Accounting Entries, Landlord’s Books, Lease Agreements, Royalties, Short Workings
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2013

FA – Nov 2013 – L1 – SA – Q31 – Elements of Financial Statements

Identifying the accounting entries when royalty payable exceeds minimum rent.

Question

What are the accounting entries when the royalty payable exceeds the minimum rent?

Answer

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Tags: Accounting Entries, Minimum Rent, Royalty
Level: Level 1

Topic: Elements of Financial Statements
Series: NOV 2013

FA – Nov 2013 – L1 – SA – Q10 – Partnership Accounts

Necessary entries for writing off net decreases in the Revaluation Account.

Question

The necessary accounting entries to write-off net decrease in the Revaluation Account of a partnership are:

A. Dr. Revaluation Account; Cr. Partners’ Capital Account
B. Dr. Partners’ Capital Accounts; Cr. Revaluation Account
C. Dr. Partners’ Current Accounts; Cr. Revaluation Account
D. Dr. Revaluation Account; Cr. Partners’ Current Account
E. Dr. Revaluation Account; Cr. Realisation Account

Answer

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Tags: Accounting Entries, Partnerships, Revaluation
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2013

CR – May 2019 – L3 – Q4 – Employee Benefits (IAS 19)

Classify a post-employment benefit plan, reconcile plan obligations, and explain the treatment of re-measurement gains or losses in line with IAS 19.

Question

CBK paid a total benefit of ₦48 million during the year.

Answer

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Tags: Accounting Entries, Defined benefit plans, Defined Contribution Plans, Re-measurements
Level: Level 3

Topic: Employee Benefits (IAS 19)

FA – Nov 2012 – L1 – SA – Q29 – Partnership Accounts

Identifying the necessary accounting entries when a partner takes over an asset upon dissolution.

Question

In partnership dissolution, what are the necessary accounting entries to record an asset taken over by a partner?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Entries, Assets, Dissolution, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2012

FA – May 2014 – L1 – SA – Q20 – Correction of errors

Determines the missing amount in the partner’s current account.

Question

What is the value of the item in the Current Account marked “X”?
A. ₦8,700
B. ₦13,060
C. ₦15,700
D. ₦16,000
E. ₦17,400

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Entries, Corrections, Current Account, Partnership
Level: Level 1

Topic: Correction of errors
Series: MAY 2014

FA – May 2014 – L1 – SA – Q13 – Partnership Accounting

Determines the correct accounting entries for a partner's salary payment

Question

Answer

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Tags: Accounting Entries, Partner's Salary, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2014

FA – May 2014 – L1 – SA – Q12 – Accounting for Inventories (IAS 2)

Identifies the accounting treatment for losses or stolen goods on consignment.

Question

Answer

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Tags: Accounting Entries, Consignment, Financial Transactions, Losses
Level: Level 1

Topic: Accounting for Inventories (IAS 2)
Series: MAY 2014

FA – Nov 2013 – L1 – SB – Q6 – Accounting Concepts

Recording royalty and short-working transactions in the landlord's books.

Question

The output of the granite for the first five years was as follows:

Year	Output (Metric Tonnes)
2008	12,000
2009	15,000
2010	22,000
2011	26,000
2012	30,000

You are required to:
Record the above transactions in the landlord’s books for the first five years of the contract.
(15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Entries, Landlord’s Books, Lease Agreements, Royalties, Short Workings
Level: Level 1

Topic: Accounting Concepts
Series: NOV 2013

FA – Nov 2013 – L1 – SA – Q31 – Elements of Financial Statements

Identifying the accounting entries when royalty payable exceeds minimum rent.

Question

What are the accounting entries when the royalty payable exceeds the minimum rent?

Answer

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Tags: Accounting Entries, Minimum Rent, Royalty
Level: Level 1

Topic: Elements of Financial Statements
Series: NOV 2013

FA – Nov 2013 – L1 – SA – Q10 – Partnership Accounts

Necessary entries for writing off net decreases in the Revaluation Account.

Question

The necessary accounting entries to write-off net decrease in the Revaluation Account of a partnership are:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Entries, Partnerships, Revaluation
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2013

Question Tag: Accounting Entries

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CR – May 2019 – L3 – Q4 – Employee Benefits (IAS 19)

Classify a post-employment benefit plan, reconcile plan obligations, and explain the treatment of re-measurement gains or losses in line with IAS 19.

You're reporting an error for "CR – May 2019 – L3 – Q4 – Employee Benefits (IAS 19)"

FA – Nov 2012 – L1 – SA – Q29 – Partnership Accounts

Identifying the necessary accounting entries when a partner takes over an asset upon dissolution.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q29 – Partnership Accounts"

FA – May 2014 – L1 – SA – Q20 – Correction of errors

Determines the missing amount in the partner’s current account.

You're reporting an error for "FA – May 2014 – L1 – SA – Q20 – Correction of errors"

FA – May 2014 – L1 – SA – Q13 – Partnership Accounting

Determines the correct accounting entries for a partner's salary payment

You're reporting an error for "FA – May 2014 – L1 – SA – Q13 – Partnership Accounting"

FA – May 2014 – L1 – SA – Q12 – Accounting for Inventories (IAS 2)

Identifies the accounting treatment for losses or stolen goods on consignment.

You're reporting an error for "FA – May 2014 – L1 – SA – Q12 – Accounting for Inventories (IAS 2)"

FA – Nov 2013 – L1 – SB – Q6 – Accounting Concepts

Recording royalty and short-working transactions in the landlord's books.

You're reporting an error for "FA – Nov 2013 – L1 – SB – Q6 – Accounting Concepts"

FA – Nov 2013 – L1 – SA – Q31 – Elements of Financial Statements

Identifying the accounting entries when royalty payable exceeds minimum rent.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q31 – Elements of Financial Statements"

FA – Nov 2013 – L1 – SA – Q10 – Partnership Accounts

Necessary entries for writing off net decreases in the Revaluation Account.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q10 – Partnership Accounts"

CR – May 2019 – L3 – Q4 – Employee Benefits (IAS 19)

Classify a post-employment benefit plan, reconcile plan obligations, and explain the treatment of re-measurement gains or losses in line with IAS 19.

You're reporting an error for "CR – May 2019 – L3 – Q4 – Employee Benefits (IAS 19)"

FA – Nov 2012 – L1 – SA – Q29 – Partnership Accounts

Identifying the necessary accounting entries when a partner takes over an asset upon dissolution.

You're reporting an error for "FA – Nov 2012 – L1 – SA – Q29 – Partnership Accounts"

FA – May 2014 – L1 – SA – Q20 – Correction of errors

Determines the missing amount in the partner’s current account.

You're reporting an error for "FA – May 2014 – L1 – SA – Q20 – Correction of errors"

FA – May 2014 – L1 – SA – Q13 – Partnership Accounting

Determines the correct accounting entries for a partner's salary payment

You're reporting an error for "FA – May 2014 – L1 – SA – Q13 – Partnership Accounting"

FA – May 2014 – L1 – SA – Q12 – Accounting for Inventories (IAS 2)

Identifies the accounting treatment for losses or stolen goods on consignment.

You're reporting an error for "FA – May 2014 – L1 – SA – Q12 – Accounting for Inventories (IAS 2)"

FA – Nov 2013 – L1 – SB – Q6 – Accounting Concepts

Recording royalty and short-working transactions in the landlord's books.

You're reporting an error for "FA – Nov 2013 – L1 – SB – Q6 – Accounting Concepts"

FA – Nov 2013 – L1 – SA – Q31 – Elements of Financial Statements

Identifying the accounting entries when royalty payable exceeds minimum rent.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q31 – Elements of Financial Statements"

FA – Nov 2013 – L1 – SA – Q10 – Partnership Accounts

Necessary entries for writing off net decreases in the Revaluation Account.

You're reporting an error for "FA – Nov 2013 – L1 – SA – Q10 – Partnership Accounts"

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