Company Final Accounts including a Manufacturing Account Ryan Ltd has an Authorised Capital of €950,000 divided into 600,000 Ordinary Shares at €1 each and 250,000 5% Preference Shares at €1 each - Leaving Cert Accounting - Question I - 2016

For the Trading and Profit and Loss Account we must consider the following:

1. Sales:

   • Total Sales: €1,332,000
   • Opening Stock of Finished Goods: €90,100
   • Less: Closing Stock of Finished Goods: €90,100
   • Cost of Sales:

   $ext{Cost of Sales} = ext{Cost of Manufacture} + ext{Opening Stock} - ext{Closing Stock}$

   $= €867,300 + €90,100 - €90,100 = €867,300$

2. Gross Profit:

   $ext{Gross Profit} = ext{Sales} - ext{Cost of Sales}$

   $= €1,332,000 - €867,300 = €464,700$

3. Expenses:

   • Administration Expenses: €49,200
   • Selling Expenses: €36,200
   • Provision for Bad Debts: €1,512

   $ext{Total Expenses} = €49,200 + €36,200 + €1,512 = €86,912$

4. Net Profit:

   $ext{Net Profit} = ext{Gross Profit} - ext{Total Expenses}$

   $= €464,700 - €86,912 = €377,788$.

The Balance Sheet must balance between Assets and Liabilities:

1. Assets:

   • Tangible Fixed Assets:
     • Factory Buildings: €970,300
     • Plant and Machinery: €116,650
   • Financial Assets: €315,000
   • Current Assets:
     • Stock:
       • Raw Materials: €36,100
       • Work in Progress: €34,200
       • Finished Goods: €160,400
     • Debtors: €38,100

   Total Assets

   $ext{Total Assets} = €970,300 + €116,650 + €315,000 + €36,100 + €34,200 + €160,400 + €38,100 = €1,670,750$

2. Liabilities:

   • Creditors (due within one year):
     • Creditors: €59,400
     • Bank: €50,000
     • Wages Due: €12,500
   • Creditors (due after more than one year): €375,000

   Total Liabilities

   $ext{Total Liabilities} = €59,400 + €50,000 + €12,500 + €375,000 = €496,900$

The balance will ensure that Total Assets equals Total Liabilities.