WA1 5NA part 1

shares issued

• DR cash at bank CR share capital

• DR share capital CR cash at bank

dividends declared and paid

• DR dividends CR cash at bank

• DR cash at bank CR dividends

Dividends declared but to be paid later

• DR dividends CR dividends payable

• DR dividends payable CR dividends

dividends payable is paid

• DR cash at bank CR dividends payable

• DR dividends payable CR cash at bank

To close profit to retained earnings

• DR income summary CR retained earnings

• DR retained earnings CR income summary

to close dividends to retained earnings

• DR dividends CR retained earnings

• DR retained earnings CR dividends

gain/loss on sale of nca = selling price minus

• cost

• net book value

To record loss on sale of nca

• DR sale of nca CR income summary

• DR income summary CR sale of nca

GAIN on sale

of nca =

• other INCOME

• other EXPENSES

% x net book value

• straight line method

• reducing-balance

  method