Leaving Cert Accounting Tabular Statements: The financial position of Bergin

Question

The financial position of Bergin Ltd, a grocer, on 01/01/2020 is shown in the following balance sheet:

Balance Sheet as at 01/01/2020

|                 | Cost    | Dep to Date | Net    |
|-----------------|---------|-------------|--------|
| Fixed Assets    |         |             |        |
| Land and buildings | 390,000 | 15,000      | 375,000|
| Equipment       | 144,000 | 47,800      | 96,200 |
|                 | 534,000 | 62,800      | 471,200|

| Current Assets  |         |             |        |
| Stock           | 56,200  |             |        |
| Debtors (Less 4% provision) | 99,840 |   | 95,840 |
| Expenses prepaid | 1,200   |             |        |
| Less Creditors: amounts falling due within 1 year | | |        |
| Creditors       | 39,400  |             |        |
| VAT             | 4,000   |             |        |
| Bank            | 14,500  | 57,900      | 9,340  |
|                 |         |             |        |
| Financed by     |         |             |        |
| Capital and Reserves |      |             |        |
| Authorised: 600,000 ordinary shares @ €1 each | | |        |
| Issued: 450,000 ordinary shares @ €1 each | 450,000 | |        |
| Share premium   | 90,000  |             |        |
| Profit and loss balance | 30,540  |      |        |
|                 | 570,640 |             |        |

The following transactions took place during 2020:

Jan          Bergin Ltd decided to revalue the land and buildings on 01/01/2020 at €450,000.
             The land element of the new value is €120,000.

Feb          Bergin Ltd bought an adjoining business on 01/02/2020 which included buildings
             €78,000, equipment €10,000 and creditors €12,000. The purchase
             price was discharged by granting the seller 100,000 shares in Bergin Ltd at a premium
             of 20c per share.

Mar          Management decided that the provision for bad debts should be increased to 4.5% of
             debtors on 31/03/2020.

May          Received a bank statement at the end of May 2020 showing a direct debit of €7,500 to
             cover the VAT return for the year ended 28/02/2021 and a credit transfer received of €6,530
             to cover rent received due to the redirect from 05/2020 to 28/02/2021.

Aug          A fridge previously sold for €1,107 by Bergin Ltd was returned.
             This figure includes VAT at 23% and a mark-up on cost of 20%.
             Bergin Ltd issued a credit note for €1,000 due to a delay in returning these goods.

Nov          A creditor who was owed €2,700 by Bergin Ltd accepted a fridge freezer, the net book
             value of which was €2,600, in full settlement of the debt. This fridge freezer had cost
             €5,000.

Dec          The depreciation charge on buildings for the year is to be 2% of net book value. The
             depreciation charge is to be calculated from date of revaluation or date of purchase as
             appropriate. The total depreciation charge on equipment for the year was €9,200.

Required:
Record on a tabular statement the effect each of the above transactions had on the relevant asset
and liability and ascertain the total assets and liabilities on 31/12/2020.

Record the land and buildings on 01/01/2020 at €450,000

Record the purchase of an adjoining business on 01/02/2020

Update bad debt provision on 31/03/2020

Record VAT direct debit and rent received in May

Adjust inventory and creditors for returned goods in August

Settlement of creditor through asset transfer in November

Calculate depreciation for buildings and equipment in December

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