1. Final Accounts with Adjustments HL only
R. Delaney and Edco
Chapter 43
Final Accounts with Adjustments
HL only

2. R. Delaney and Edco
Demonstration
Q4 Paper 2, 2003 is used to demonstrate the final accounts with adjustments.
This is featured in the next two slides
This is followed by the solutions to Qs 1 and 2 Textbook page 398

3. Closing Stock, €12,000 Trial Balance @ 31/5/03
R. Delaney and Edco
Trial 31/5/03
TRADING A/C & PROFIT AND LOSS 31/5/03 DR € CR €
250,000
Sales
250,000
Cost of Sales
Sales ,000
Purchase ,000
Purchase
and Sales
110,000
250,000
Opening Stock
14,000 L e s
Purchases Returns ,000
Purchase Returns
5,000
Purchases
110,000
Òpening Stock ,000
Less Purchase Returns
5,000
105,000
Opening Stock 1/6/02
14,000
Import Duty ,000
Import Duty
1,000
Import Duty
1,000
Cost of Goods Avl. for Sale
120,000
Debtors and Creditors
18,000
13,000
Less Closing Stock
12,000
Insurance ,000,
Insurance
5,000
Cost of Goods Sold
108,000,
108,000
Wages ,000,
Wages
40,000
Gross Profit
142,000
Delivery Vans
68,000
Plus Gains
Machinery
90,000
Commission Receivable
2,000
Plus Commission Due
500
2,500
Cash
2,000
144,500
Commission Receivable ,000
144,500
Commission Receivable
2,000
Less Expenses
Profit and Loss reserve ,000
Reserves (P& L Bal.)
16,000
Insurance
5,000 L e s
Bank Overdraft
4,000
Wages
40,000
Bad debts ,000
Bad Debts
2,000
Plus Wages due
3,000
43,000
Buildings
190,000
Bad Debts
2,000
Depreciation
Issued Share Capital
250,000
Machinery 10%
9,000
540,000
540,000
Delivery Vans 12%
8,160
17,160
67,160
67,160
Closing Stock, €12,000
Closing Stock €12,000
Net Profit
77,340
Less dividends declared ,500
Commission Receivable due €500
Commission Receivable due €500
39,840
Dividends Declared 15%
Dividends declared 15%
Plus opening P &L Reserve ,000
Depreciation : Machinery 10%
Closing P & L Reserve
55,840
Depreciation : Delivery Vans 12%
Wages Due €3,000
Wages Due €3,000

4. Closing Stock, €12,000 Trial Balance @ 31/5/03
R. Delaney and Edco
Trial 31/5/03
BALANCE SHEET AS AT 31/5/03 DR € CR €
Fixed Assets Cost Dep Net Val.
Purchase
and Sales
110,000
250,000
Delivery Vans ,000
8,160
59,840
Purchase Returns
5,000
Machinery ,000
9, ,000
Opening Stock 1/6/02
14,000
Import Duty
1,000
Buildings , ,000
Debtors ,000
Creditors ,000
Debtors and Creditors
18,000
13,000
348, , ,840
Insurance
5,000
Current Assets
Wages
40,000
Debtors ,000
Delivery Vans ,000
Delivery Vans
68,000
Cash ,000
Machinery ,000
Machinery
90,000
Closing stock ,000
Cash ,000
Cash
2,000
Commission receivable ,500
Commission Receivable
2,000
Current Liabilities
Reserves (P& L Bal.)
16,000
Creditors ,000
Bank overdraft ,000
Bank Overdraft
4,000
Bank overdraft ,000
Bad Debts
2,000
Wages due ,000
Buildings ,000
Buildings
190,000
Dividends declared 12% , ,500
Issued share capital ,000
Issued Share Capital
250,000
Working capital ,000
540,000
540,000
Net Assets ,840
Closing Stock, €12,000
Closing stock €12,000
Financed by:
Commission Receivable due €500
Commission receivable due €500
Authorised Share Capital ,000
Dividends Declared 15%
Issued Share Capital ,000
Dividends declared 15%
Closing P & L Reserve ,840
Depreciation : Machinery 10%
Depreciation Machinery 10%
Depreciation Delivery Van 12%
Capital Employed ,840
Depreciation : Delivery Vans 12%
Wages due €3,000
Wages Due €3,000

5. Q1: Textbook: Page 398 Trading, Profit and Loss A/Cs at 31/3/09 € € €
R. Delaney and Edco
Q1: Textbook: Page 398
Trading, Profit and Loss A/Cs at 31/3/09 € € €
Sales
340,000
Less sales returns
10,000
330,000
Cost of Sales
Opening stock
12,000
Purchases
120,000
Carriage inwards
3000
Cost of goods available for sale
135,000
Less closing stock
25,000
Cost of goods sold
110,000
Gross Profit
220,000
Plus gains
Rent receivable
23,000
Plus amount due
2,000
25,000
245,000
Less expenses
Advertising
4,000
Plus amount due
3,000
7,000
Wages
40,000
Bad debts
2,000
Depreciation
Motor vehicles 5%
9,000
Machinery 10%
13,500
22,500
71,500
Net profit
173,500

6. Q1: Textbook: Page 398 (cont)
R. Delaney and Edco
Q1: Textbook: Page 398 (cont)
Profit and Loss Appropriation A/C at 31/3/09
€ € €
Net profit
173,500
Less dividends declared
43,300
130,200
Plus opening P & L balance
55,000
Closing profit and loss reserve
185,200

7. Q1: Textbook: Page 398 (cont)
R. Delaney and Edco
Q1: Textbook: Page 398 (cont)
Balance Sheet as at 31/3/09
Cost
Depr
Net Value
Fixed assets € € €
Buildings
420,000
420,000
Motor vehicles
180,000
9,000
171,000
Machinery
135,000
13,500
121,500
735,000
22,500
712,500
Current assets
Debtors
12,000
Closing stock
25,000
Rent receivable due
2,000
39,000
Less current liabilities
Creditors
18,000
Bank overdraft
11,000
Advertising due
3,000
Dividends declared 10%
43,300
75,300
Working capital
-36,300
Net Assets
676,200
Financed by:
Authorised share capital
500,000
Issued share capital
433,000
Closing profit and loss reserve
185,200
10 Year loan
58,000
Capital Employed
676,200

8. Q2: Textbook: Page 398 Trading and Profit and Loss A/Cs at 31/5/09 € €
R. Delaney and Edco
Q2: Textbook: Page 398
Trading and Profit and Loss A/Cs at 31/5/09 € € €
Sales
420,000
Cost of Sales
Opening stock
30,000
Purchases
150,000
Less purchases returns
12,000
138,000
Import duty
11,000
Plus amount due
3,000
14,000
Cost of goods available for sale
182,000
Less closing stock
20,000
Cost of goods sold
162,000
Gross Profit
258,000
Plus gains
Commission receivable
20,000
278,000
Less expenses
Rates
15,000
Telephone
3,000
Wages
30,000
Less amount prepaid
4,000
26,000
Interest on overdraft
1,000
Depreciation
Computer equipment 10%
9,000
54,000
Net profit
224,000

9. Q2: Textbook: Page 398 (cont)
R. Delaney and Edco
Q2: Textbook: Page 398 (cont)
Profit and Loss Appropriation A/C at 31/5/09
€ € €
Net profit
224,000
Less dividends declared
5,500
218,500
Plus opening P & L balance
30,000
Closing profit and loss reserve
248,500

10. Q2: Textbook: Page 398 (cont)
R. Delaney and Edco
Q2: Textbook: Page 398 (cont)
Balance Sheet as at 31/5/09
Cost
Depr
Net Value
Fixed assets € € €
Land
300,000
300,000
Computer equipment
90,000
9,000
81,000
390,000
9,000
381,000
Current assets
Debtors
70,000
Cash
10,000
Closing stock
20,000
Wages prepaid
4,000
104,000
Less current liabilities
Creditors
40,000
Bank overdraft
10,000
Import duty due
3,000
Dividends declared 5%
5,500
58,500
Working capital
45,500
Net Assets
426,500
Financed by:
Authorised share capital
200,000
Issued share capital
110,000
Closing profit and loss reserve
248,500
15 Year loan
68,000
Capital Employed
426,500