Page 95 - Ebook Financial Accounting 3

Other’s activities - Adjustment Accounts

‘Returns on investments’ are cash inflows such as interest received, and dividends received
whereas ‘servicing of finance’ are cash outflows such as interest paid (including finance

charges and hire purchase interest) and dividends paid.

Interest Expenses Account

RM RM

Bal b/d (prepayment) xx Bal b/d (accrual) xx
Cash xx SOCI (Interest charge) xx

Bal c/d (accrual) xx Bal c/d (prepayment) xx

XX XX

Tax Expenses Account

RM RM
Bal b/d (prepayment) xx Bal b/d (accrual) xx

Cash xx SOCI (Tax appropriation for xx

current year)
Bal c/d (accrual) xx Bal c/d (prepayment) xx

XX XX

Acc. Depreciation - NCA Account

RM RM
Disposal xx Bal b/d xx

Bal c/d xx SOCI xx

XX XX

Net Profit before tax*** RM

Retained Earnings (c/d) xx
Retained Earnings (b/d) (xx)

Proposed dividend xx

Tax expenses xx
Profit before tax XXX

89