CHAPTER 42 FINAL ACCOUNTS 3 31/05/2019 CHAPTER 42 FINAL ACCOUNTS 3 Based on Qs 1 and 2: 5 and 6 in the Workbook, Pages 390 and 391 This is the Title Slide R. DELANEY

Q1 Balance Sheet as at 31/12/10 € € € Fixed Assets Machinery 80,000 R. Delaney Q1 Balance Sheet as at 31/12/10 € € € Fixed Assets Machinery 80,000 Land 120,000 Current Assets less Current Liabilities = Working Capital 200,000 Current Assets Fixed Assets plus Working Capital = Net Assets Cash 80,000 Closing stock 40,000 120,000 Less Current liabilities Bank overdraft 15,000 Working capital 105,000 Net Assets 305,000 Financed by: Authorised share capital 300,000 Issued share capital 235,000 Closing Profit and Loss Reserve 70,000 Capital Employed 305,000

Q2 Balance Sheet as at 31/12/11 € € € Fixed Assets R. Delaney Q2 Balance Sheet as at 31/12/11 € € € Fixed Assets Fixtures and fittings 100,000 Motor vehicles 95,000 Current Assets less Current Liabilities = Working Capital 195,000 Fixed Assets plus Working Capital = Net Assets Current Assets Cash in hand 30,000 Closing stock 25,000 55,000 Less Current liabilities Bank overdraft 80,000 Working capital (25,000) Net Assets 170,000 Financed by: Authorised share capital 400,000 Issued share capital 125,000 Closing Profit and Loss Reserve 45,000 Capital Employed 170,000

R. Delaney Q5 (1) Trading, Profit and Loss and Profit and Loss Appropriation A/C at 31/12/10 € € € Cash sales 350,000 Less Cost of Sales Sales less cost of goods sold = gross profit Opening stock 25,000 Cash purchases 150,000 Carriage inwards 5,000 Cost of goods available for sale 180,000 Less closing stock 15,000 Cost of goods sold 165,000 Gross profit 185,000 Gross profit less expenses = net profit Less expenses Rent 15,000 Wages 10,000 Electricity 12,000 Insurance 7,000 44,000 Net profit 141,000 Less dividends paid 5,000 Closing Profit and Loss Reserve 136,000

Q5 (2) Balance Sheet as at 31/12/10 € € € Fixed Assets Furniture R. Delaney Q5 (2) Balance Sheet as at 31/12/10 € € € Fixed Assets Furniture 80,000 Machinery 40,000 Current Assets less Current Liabilities = Working Capital 120,000 Current Assets Fixed Assets plus Working Capital = Net Assets Cash 15,000 Closing stock 15,000 30,000 Less Current liabilities Bank overdraft 10,000 Working capital 20,000 Net Assets 140,000 Financed by: Authorised share capital 20,000 Issued share capital 4,000 Closing Profit and Loss Reserve 136,000 Capital Employed 140,000

R. Delaney Q6 (1) Trading, Profit and Loss and Profit and Loss Appropriation A/C at 31/12/11 € € € Cash sales 500,000 Less Cost of Sales Sales less cost of goods sold = gross profit Opening stock 3,000 Cash purchases 300,000 Carriage inwards 3,000 Cost of goods available for sale 306,000 Less closing stock 35,000 Cost of goods sold 271,000 Gross profit 229,000 Less expenses Gross profit less expenses = net profit Light and heat 10,000 Wages 15,000 Advertising 22,000 Rates 6,000 Postage 2,000 55,000 Net profit 174,000 Less dividends paid 8,000 Closing Profit and Loss Reserve 166,000

Q6 (2) Balance Sheet as at 31/12/11 € € € Fixed Assets Land 108,000 R. Delaney Q6 (2) Balance Sheet as at 31/12/11 € € € Fixed Assets Land 108,000 Equipment 61,000 169,000 Current Assets less Current Liabilities = Working Capital Current Assets Fixed Assets plus Working Capital = Net Assets Cash 10,000 Closing stock 35,000 45,000 Less Current liabilities Bank overdraft 15,000 Working capital 30,000 Net Assets 199,000 Financed by: Authorised share capital 40,000 Issued share capital 33,000 Closing Profit and Loss Reserve 166,000 Capital Employed 199,000