Leaving Cert Accounting Tabular Statements: The financial position of Cooper

Question

The financial position of Cooper Ltd on 1/1/2012 is shown in the following balance sheet:

Balance sheet as at 1/1/2012

|                   |     €  |   Dep.      |   €  |   Net   |
|-------------------|-------|-------------|------|---------|
| Intangible Fixed Assets |       |             |      |         |
| Goodwill (cost €65,000) | 65,000 |             |      |  45,000 |
| Fixed Assets      |       |             |      |         |
| Land & buildings  | 727,000 | 54,000      |      | 673,000 |
| Delivery vans     |  80,000 | 30,000      |      |  50,000 |
|                   |       |             |      |         |
| Current Assets    |       |             |      |         |
| Stock             |  91,600 |             |      |  91,600 |
| Debtors           |  55,800 |             |      | 147,400 |
|                   |       |             |      |         |
| Less Creditors: amount falling due within 1 year |
| Creditors         |  75,400 |             |      |  75,400 |
| Bank              |  15,800 |             |      |  15,800 |
| Expenses due      |   4,200 |  95,400     |  2,900 | 20,000 |
|                   |       |             |      |  20,000 |
| Financed by       |       |             |      |         |
| Capital and Reserves |       |             |      |         |
| Authorised        | 1,000,000 ordinary shares @ €1 each |
| Issued            | 600,000 ordinary shares @ €1 each |
| Share premium     | 80,000   |             |      |         |
| Profit and loss balance | 20,000 |             |      |         |
|                   | 820,000 |             |      |         |

The following transactions took place during 2012:

Jan Cooper Ltd bought an adjoining business on 1/1/2012 which included buildings €530,000, delivery vans €70,000, stock €250,000 and creditors €30,000. The purchase price was disregarded by granting the seller 800,000 shares at €1 each to Cooper Ltd at a premium of 20c per share.

Feb A creditor who was owed €9,800 by Cooper Ltd accepted a delivery van, the book value of which was €50,90 in full settlement of the debt. This delivery van was set at €61,540.

April Cooper Ltd decided to re-value the land and buildings on 14/2012 at €1,200,000. This valuation included land now valued at €180,000.

May Re-valued the land on May 31 showing a direct debit of €20,800 advertising for year end 2013/2012 and a credit transfer received of €9,900 to cover 11 months rent payable from 01/03/2012.

June A creditor who was owed €20,000, was incurred a delivery fee of €30,000. An allowance of €5,400 was made for the old van. Depreciation to date on the old van was €7,900.

Aug Cooper Ltd agreed to re-issue shares to re-pay a person who had given them a loan of €20,000 and who now wishes to trade with Cooper Ltd again. This represents 80% of the original debt and valid undertaking for the remaining €3,000.

Sept The same day goods used on credit to a creditor was €1,200 with a mark-up on cost of 25%.

Dec The income derived on buildings is charged at the rate of 2% per annum of value at 1/4/2012. The depreciation for the year on delivery vans was €8,000.

Required: Record 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 31/12/2012.

Assets	€	€
Delivery vans (received)	61,540
Revaluation
Total Assets	880,540	Total Liabilities

Assets	€	Liabilities	€
Delivery vans (revalued)	50,000
Total Assets	880,540		Total Liabilities

Assets	€	Liabilities	€
Land & buildings (revalued)	1,200,000
Total Assets	1,200,000		Total Liabilities

Assets	€	€
Total Assets	1,200,000
Total Liabilities		€ 20,000
		€ 1,200,000

The financial position of Cooper Ltd on 1/1/2012 is shown in the following balance sheet: Balance sheet as at 1/1/2012 | | € | Dep - Leaving Cert Accounting - Question 3 - 2013

Worked Solution & Example Answer:The financial position of Cooper Ltd on 1/1/2012 is shown in the following balance sheet: Balance sheet as at 1/1/2012 | | € | Dep - Leaving Cert Accounting - Question 3 - 2013

Tabular Statement as at 1/1/2012

January Transactions

February Transactions

April Transactions

Final Summary as at 31/12/2012

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