Tabular Statement The following balance sheet shows the financial position of a sole trader, Trevor Kelly, as at 01/02/2018: Balance Sheet as at 01/02/2018: Fixed Assets Buildings €500,000 Delivery vans €82,000 €582,000 Current Assets Stock €52,000 Debtors €14,000 Bank €41,500 €107,500 Less Creditors: amounts falling due within 1 year Creditors €21,000 Expenses due €800 €21,800 €85,700 Financed by: Capital €590,000 Profit/loss account €77,700 €667,700 The following transactions took place during February 2018: Feb 4 Paid by cheque expenses that were due at the beginning of the month. Feb 8 Purchased goods on credit for €14,800. Feb 13 Purchased a new delivery van for €21,000. A deposit of €4,000 was paid by cheque and the remainder borrowed from Surety Finance Ltd. Feb 16 Cheque received from a debtor €3,300 in full settlement of a debt of €4,500. Feb 20 Received a cheque from business bank account €1,600 for repairs to private premises. Feb 22 Paid by cheque, a creditor's account balance of €500 and received a discount of €120. Feb 25 A debtor who owed €400 was declared bankrupt and paid 30c in the €. Feb 27 Sold goods on credit for €7,300, which originally cost €3,500. Required: Record in a tabular statement the effect each of the above transactions had on the relevant assets and liabilities. Show the total assets and liabilities on 28/02/2018.

Leaving Cert Accounting Tabular Statements: Tabular Statement The following

Tabular Statement The following balance sheet shows the financial position of a sole trader, Trevor Kelly, as at 01/02/2018: Balance Sheet as at 01/02/2018: Fixed Assets Buildings €500,000 Delivery vans €82,000 €582,000 Current Assets Stock €52,000 Debtors €14,000 Bank €41,500 €107,500 Less Creditors: amounts falling due within 1 year Creditors €21,000 Expenses due €800 €21,800 €85,700 Financed by: Capital €590,000 Profit/loss account €77,700 €667,700 The following transactions took place during February 2018: Feb 4 Paid by cheque expenses that were due at the beginning of the month - Leaving Cert Accounting - Question 4 - 2018

Question 4

Tabular Statement The following balance sheet shows the financial position of a sole trader, Trevor Kelly, as at 01/02/2018: Balance Sheet as at 01/02/2018: Fixed... show full transcript

Worked Solution & Example Answer:Tabular Statement The following balance sheet shows the financial position of a sole trader, Trevor Kelly, as at 01/02/2018: Balance Sheet as at 01/02/2018: Fixed Assets Buildings €500,000 Delivery vans €82,000 €582,000 Current Assets Stock €52,000 Debtors €14,000 Bank €41,500 €107,500 Less Creditors: amounts falling due within 1 year Creditors €21,000 Expenses due €800 €21,800 €85,700 Financed by: Capital €590,000 Profit/loss account €77,700 €667,700 The following transactions took place during February 2018: Feb 4 Paid by cheque expenses that were due at the beginning of the month - Leaving Cert Accounting - Question 4 - 2018

Step 1

Feb 4 - Paid by cheque expenses that were due at the beginning of the month.

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Decrease Expenses due by €800 and Cash/Bank decreases by €800.

New Balances: Expenses due: €21,000 - €800 = €20,200; Bank: €41,500 - €800 = €40,700.

Step 2

Feb 8 - Purchased goods on credit for €14,800.

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Increase Stock by €14,800 and increase Creditors by €14,800.

New Balances: Stock: €52,000 + €14,800 = €66,800; Creditors: €21,000 + €14,800 = €35,800.

Step 3

Feb 13 - Purchased a new delivery van for €21,000.

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Increase Delivery vans by €21,000, decrease Bank by €4,000, and increase Creditors by €17,000 (borrowed from Surety Finance Ltd).

New Balances: Delivery vans: €82,000 + €21,000 = €103,000; Bank: €40,700 - €4,000 = €36,700; Creditors: €35,800 + €17,000 = €52,800.

Step 4

Feb 16 - Cheque received from a debtor €3,300.

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Decrease Debtors by €4,500 and increase Bank by €3,300.

New Balances: Debtors: €14,000 - €4,500 = €9,500; Bank: €36,700 + €3,300 = €40,000.

Step 5

Feb 20 - Received a cheque from business bank account €1,600 for repairs to private premises.

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Increase Drawings by €1,600 and decrease Bank by €1,600.

New Balances: Drawings: €0 + €1,600 = €1,600; Bank: €40,000 - €1,600 = €38,400.

Step 6

Feb 22 - Paid a creditor's account balance of €500 and received a discount of €120.

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Decrease Creditors by €500, increase Profit/Loss account by €120, and decrease Bank by €500.

New Balances: Creditors: €52,800 - €500 = €52,300; Profit/Loss: €77,700 + €120 = €77,820; Bank: €38,400 - €500 = €37,900.

Step 7

Feb 25 - Debtor declared bankrupt and paid 30c in the €.

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Decrease Debtors by €400 and increase Bank by €120 (30% of €400).

New Balances: Debtors: €9,500 - €400 = €9,100; Bank: €37,900 + €120 = €38,020.

Step 8

Feb 27 - Sold goods on credit for €7,300.

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Increase Stock by €3,500 (cost) and increase Debtors by €7,300.

New Balances: Stock: €66,800 + €3,500 = €70,300; Debtors: €9,100 + €7,300 = €16,400.

Step 9

Total Assets and Liabilities on 28/02/2018.

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Final Asset Calculation:

Fixed Assets: €500,000 + €103,000 = €603,000
Current Assets: €70,300 + €16,400 + €38,020 = €124,720
Total Assets = €603,000 + €124,720 = €727,720

Final Liability Calculation:

Creditors = €52,300
Profit/Loss (capital) = €77,820
Drawings = €1,600

Total Liabilities = €52,300 + €77,820 + €1,600 = €131,720.

Feb 4 - Paid by cheque expenses that were due at the beginning of the month.

Feb 8 - Purchased goods on credit for €14,800.

Feb 13 - Purchased a new delivery van for €21,000.

Feb 16 - Cheque received from a debtor €3,300.

Feb 20 - Received a cheque from business bank account €1,600 for repairs to private premises.

Feb 22 - Paid a creditor's account balance of €500 and received a discount of €120.

Feb 25 - Debtor declared bankrupt and paid 30c in the €.

Feb 27 - Sold goods on credit for €7,300.

Total Assets and Liabilities on 28/02/2018.

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