Q1 - final accounts

Question 1

layout- trading profit and loss account

Answer 1

sales
less cost of sales
opening stock
purchases
less closing stock
cost of sales
gross profit
less expenses
administration expenses
depreciation buildings
sales and general expenses
patents written off
depreciation equipment
loss on fire (stock )
*S&D expenses *
depreciation delivery vans
loss on sale of van
advertising
increase in bad debt provision
add gains
operating income
bad debt recovered
discount
operating profit
investment income
less mortgage interest
net profit

Question 2

Q1 final accounts - balance sheet

Answer 2

*intangible fixed assets *
patents
*tangible fixed assets *
land and buildings
delivery vans
equipment
financial assets
4% investments
current assets
closing stock
debtors
less bad debt provision
investment income due
insurance due
*creditors *
creditors
VAT
bank
mortgage interest due
PAYE,PRSI,USC
*financed by *
3% mortgage
capital
revaluation reserve
net profit
less drawings
capital employed

Question 3

workings - goods in transit ( goods on the way )

Answer 3

1 purchases
2 stock
3 creditors

selling price 4800= 120%
4000 =100%
purchases +4000 - cos , P&L
stock +4000 - cos, P&L - CA BS
creditors + 4000 , creditors falling due BS

Question 4

closing stock working

Answer 4

stock was 76000
-5500 of damaged stock
+2800 of the net realisable value
=73300 CA BS, COS p+L , new CL stock

Question 5

depreciation on vans working

Answer 5

1.profit or loss S+D exp , P+L
2.new cost FA BS
3. dep for the year S+D exp, P+L
4. accumulated depreciation FA BS
5.adjust purchases

Question 6

sale or return working

Answer 6

3000 = 100% C.P
3750 =125% S.P
- sales 3750
-debtors 3750
+ closing stock 3000

Question 7

asset destroyed in fire working

Answer 7

-fire caused 3500 of damage
-insurance agreed to pay 2200 of compensation
-3500 purchases
ins comp due 2200 CA
loss on ins 1300 EXP

Question 8

revaluation of a fixed asset working

Answer 8

dep on buildings 2% of cost per annum
it was decided to revalue the buildings at 1300000
TB buildings cost 850000 , 800000
1. 850000 X 2% = €17000
2. if no revalue 850000|67000|783000
3. if revalue 1300000| 0 | 1300000
4. 1300000 - 783000= 517000
dep = 67000

Question 9

mortgage / debenture interest working