Final Accounts of a Sole Trader
The following balances were extracted from the books of Michael O'Reilly, a sole trader as at 31/12/2017:
Buildings €400,000
Delivery vans at cost €64,000
Accumulated depreciation – delivery vans €12,000
Office equipment (cost €20,000) €10,000
Patents €24,000
Capital 01/01/2017 €202,000
Drawings €12,200
Stock 01/01/2017 €27,000
Sales €583,000
Purchases €192,000
Returns outward (purchases returns) €5,100
Sales returns €13,000
Creditors €36,200
Debtors €22,400
Discount received €1,300
Wages and salaries €108,000
General expenses €12,500
VAT €15,300
Stationery €4,200
Term loan (received 01/04/2017) €60,000
Loan interest paid €1,500
PRSI/USC €9,600
Insurance €8,200
Provision for bad debts €4,000
Bank €46,500
Advertising €5,000
Profit/loss balance 01/01/2017 €51,400
You are given the following additional information:
(i) Stock for resale at 31/12/2017 was €21,000 - Leaving Cert Accounting - Question 1 - 2018
Question 1
Final Accounts of a Sole Trader
The following balances were extracted from the books of Michael O'Reilly, a sole trader as at 31/12/2017:
Buildings €400,000
Delive... show full transcript
Worked Solution & Example Answer:Final Accounts of a Sole Trader
The following balances were extracted from the books of Michael O'Reilly, a sole trader as at 31/12/2017:
Buildings €400,000
Delivery vans at cost €64,000
Accumulated depreciation – delivery vans €12,000
Office equipment (cost €20,000) €10,000
Patents €24,000
Capital 01/01/2017 €202,000
Drawings €12,200
Stock 01/01/2017 €27,000
Sales €583,000
Purchases €192,000
Returns outward (purchases returns) €5,100
Sales returns €13,000
Creditors €36,200
Debtors €22,400
Discount received €1,300
Wages and salaries €108,000
General expenses €12,500
VAT €15,300
Stationery €4,200
Term loan (received 01/04/2017) €60,000
Loan interest paid €1,500
PRSI/USC €9,600
Insurance €8,200
Provision for bad debts €4,000
Bank €46,500
Advertising €5,000
Profit/loss balance 01/01/2017 €51,400
You are given the following additional information:
(i) Stock for resale at 31/12/2017 was €21,000 - Leaving Cert Accounting - Question 1 - 2018
Step 1
Prepare a balance sheet as at 31/12/2017
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Answer
Balance Sheet of Michael O'Reilly as at 31/12/2017
Assets
Intangible Assets
Patents: €24,000
Fixed Assets
Buildings: €392,000
Office Equipment: €6,000
Delivery Vans: €46,800 Total Fixed Assets: €468,800
Current Assets
Closing Stock: €21,000
Stock of Stationery: €1,300
Debtors: €22,400
Less Bad Debt Provision: €1,120
Bank: €46,500
Advertising Prepaid: €1,800 Total Current Assets: €51,920
Total Assets: €520,720
Liabilities
Creditors: amounts falling due within 1 year
Creditors: €22,400
VAT: €15,300
Loan Interest: €4,800
PRSI/USC: €9,600 Total Current Liabilities: €52,100
Financed by
Loan (amount falling due after 1 year): €60,000
Capital: €202,000
Profit and Loss Balance: €275,490
Less Drawings: €13,100
Total Liabilities: €520,720
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