Mehla Ltd. has an Authorised Capital of €1,500,000 divided into 1,100,000 Ordinary Shares at €1 each and 400,000 4% Preference Shares at €1 each - Leaving Cert Accounting - Question 1 - 2015

To prepare the Balance Sheet as at 31/12/2014, you will categorize the information into assets and liabilities:

Assets

1. Intangible Fixed Assets:

   • Patents: €20,000

2. Tangible Fixed Assets:

   • Buildings: €713,000

   • Delivery Vans: €170,000

   • Depreciation for buildings and delivery van calculated:

   For buildings: €14,000

   For delivery van: €40,425

   • Tangible Fixed Assets (Net) = (Buildings + Delivery Vans) - (Depreciation Building + Depreciation Delivery Van)

3. Current Assets:

   • Stock: €77,000
   • Debtors: €99,200
   • Bank: Balance in bank as at year ending (after all adjustments): €231,100 - (Bank Overdraft if present)

Liabilities

1. Current Liabilities:

   • Creditors due within a year, Bank overdraft values, Debentures due.

2. Long-term Liabilities:

   • 8% Debentures due in 2016 = €400,000.

3. Capital and Reserves:

   • Ordinary Shares at €1 each = €1,100,000
   • Preference Shares at €1 each = €300,000
   • Reserves including P&L Balance and any other adjustments.

Structure and Totals

Finally, structure the assets and liabilities to ensure that Total Assets = Total Liabilities + Capital to maintain the balance in your Balance Sheet. Show all calculations clearly.