1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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