Leaving Cert Accounting FINAL ACCOUNTS - Sole Trader: Final Accounts of a Sole Trader

Question

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.
(ii) Stock of stationery at 31/12/2017 was €1,300.
(iii) Included in Insurance is a cheque for €900, which is for M. O'Reilly's private house insurance.
(iv) Provision should be made for interest due on the loan. The rate of interest is 8% per annum.
(v) Advertising is for the year ended 30/04/2018.
(vi) Depreciation is to be provided as follows:
- Buildings	2% of cost
- Delivery vans	10% of net book value
- Office equipment	20% of cost
(vii) Provision for bad debts is to be adjusted to 5% of debtors.

Prepare a balance sheet as at 31/12/2017

Balance Sheet of Michael O'Reilly as at 31/12/2017

Assets

Liabilities

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