Leaving Cert Accounting Tabular Statements: The financial position of NSL Lt

Question

The financial position of NSL Ltd on 1/1/2005 is shown in the following Balance sheet:

Balance sheet as at 1/1/2005:

| Description               | Cost   | Dep. to date  | Net       |
|---------------------------|--------|---------------|-----------|
| Fixed Assets              |        |               |           |
| Land & Buildings          | €260,000 | €25,000        | €235,000  |
| Equipment                 | €50,000  | €20,000        | €30,000   |
| Total Fixed Assets        | €310,000 | €45,000        | €265,000  |
| Current Assets            |        |               |           |
| Stock                     | €70,000  |               | €70,000   |
| Debtors (less provision 5%) | €55,500  | €2,775         | €52,725   |
| Less Creditors: amounts falling due within 1 year | | |           |
| - Bank                    | €23,000  |               | €23,000   |
| - Expenses due            | €3,500   |               | €3,500    |
| - Creditors               | €61,000  |               | €61,000   |
| Net Current Assets        |          |               | €333,000  |

Financed by

| Description               | Amount |
|---------------------------|----------|
| Capital and reserves      |          |
| Authorised - 400,000 Ordinary shares @ €1 each | €400,000 |
| Issued - 290,000 Ordinary shares @ €1 each   | €290,000 |
| Share premium             | €14,000  |
| Profit and loss balance   | €329,000 |
| Total                     | €1,034,000  |

The following transactions took place during 2005:

| Month | Transaction                |
|-------|---------------------------|
| Jan   | NSL Ltd. bought an adjoining business which included buildings €120,000, debtors €10,000 and creditors €68,000.  The purchase price was discharged by granting the seller 80,000 shares in NSL Ltd. at a premium of 20 cent per share. |
| Feb   | NSL Ltd. decided to re-value land and buildings at €550,000 (which includes land value at €70,000) on 28/02/2005. |
| March | Management decided that the provision for bad debts should be raised to 6% of debtors.  Goods previously sold for €80 were returned.  The selling price of these goods was €200.  A credit note was issued showing a deduction of 10% of the selling price as a receiving charge. |
| April | NSL Ltd. made a bank statement on May 31 showing a credit received for €4,800 for insurance.  The insurance had been paid in advance for May 1 and is dated €2,600 to cover fire insurance for the year ending 31/3/2006. |
| June  | A payment of €630 was received from a debtor whose debt had been previously reserved for January 2006.  The debtor had undertaken to pay the remaining balance of €1,400. |
| Oct   | NSL Ltd. disposed of the equipment bought back valued at €480, in complete settlement of the debt.  The equipment cost €2,600. |
| Nov   | The company's credit received on 1st November totaled €38,000. |
| Dec   | The company intended to depreciate the equipment for the year was €70,000. |

You are required to:
Record a tabular statement to ascertain the total assets and liabilities on 31/12/2006.

Description	Value (€)
Fixed Assets
Land & Buildings (revalued)	€550,000
Equipment	€30,000
Total Fixed Assets	€580,000

The financial position of NSL Ltd on 1/1/2005 is shown in the following Balance sheet: Balance sheet as at 1/1/2005: | Description | Cost | Dep - Leaving Cert Accounting - Question 6 - 2016

Worked Solution & Example Answer:The financial position of NSL Ltd on 1/1/2005 is shown in the following Balance sheet: Balance sheet as at 1/1/2005: | Description | Cost | Dep - Leaving Cert Accounting - Question 6 - 2016

Record a tabular statement to ascertain the total assets and liabilities on 31/12/2006

Step 1: Prepare Asset Table

Step 2: Prepare Current Asset Table

Step 3: Calculate Total Assets

Step 4: Prepare Liabilities Table

Step 5: Calculate Total Assets and Liabilities

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Description	Value (€)
Stock	€70,000
Debtors (after provision 6%)	€52,725
Total Current Assets	€122,725

Description	Value (€)
Creditors	€61,000
Other Liabilities	€3,500
Total Liabilities	€64,500