Leaving Cert Accounting FINAL ACCOUNTS - Company: Final Accounts of a Company

The

Question

Final Accounts of a Company

The following balances were extracted from the books of Jordan Ltd. on 31/12/2006.

Share Capital

Authorized - 600,000 Ordinary shares at £1 each
Issued - 400,000 Ordinary shares at £1 each

Buildings ...

€ 
€

Buildings .............................................................. € 540,000 
Office equipment ................................................... € 95,000 
Patents ................................................................ € 84,000 
Accumulated depreciation - Office Equipment ....... € 6,000 
Accumulated depreciation - Buildings ................ € 100,000 
8% Debentures issued on 31/03/06 .................. € 100,000

Sales .................................................................. € 1,225,200 
Purchases ............................................................ € 310,000 
Carriage inward ................................................... € 19,000 
Wages and Salaries ............................................. € 113,300 
Cash and Bank ...................................................... € 6,900 
Stationery ................................................................ € 600 
Stocks 01/06 ......................................................... € 2,640 
Goods for resale ................................................ € 145,000 
Stationery ................................................................ € 600

VAT ................................................................... € 10,600 
Directors’ Fees .................................................... € 10,470 
Profit and loss balance 1/1/06 .................... € 83,000 
Returns .................................................................. € 4,000 
Insurance ............................................................... € 14,250 
Provision for bad debts .................................... € 2,800 
Advertising ............................................................ € 7,300 
Commission on sales ...................................... € 6,000

You are given the following additional information:

(i) Stocks at 31/12/2006:

- Goods for resale: € 45,800
- Stationery: € 600

(ii) Depreciation is to be provided as follows:
- Office equipment: 30% of cost

(iii) Provision for bad debts to be adjusted to 5% of debtors.

(iv) Insurance is prepaid to 31/12/2007.

(v) Directors’ fees are due on 31/12/2006.

(vi) Bank interest to be applied at 12,000.

You are required to prepare:
(a) Trading and Profit and Loss Account for the year ended 31/12/2006.
(b) Balance Sheet as at 31/12/2006.

Assets	€
Intangible Fixed Assets:
Patents	84,000
Tangible Fixed Assets:
Buildings	540,000
Office equipment	95,000
Less Accumulated Depreciation	(106,000)
Net Book Value	613,000

Current Assets:
Closing Stock	45,800
Stationery	600
Debtors	20,400
Less Provision for Bad Debts	(1,020)
Net Current Assets	66,780

Total Assets	679,780

Liabilities	€
Creditors: amounts falling due within 1 year
Debenture interest due	6,000
Advertising due	1,200
Corporation Tax due	1,820
VAT due	11,800
Total Current Liabilities	20,820

Creditors: amounts falling due after more than 1 year
8% Debentures	100,000
Total Liabilities	120,820

Capital & Reserves
Share Capital	400,000
Profit & Loss Account	205,700
Capital Employed	605,700

Total Contributions	679,780

Final Accounts of a Company The following balances were extracted from the books of Jordan Ltd - Leaving Cert Accounting - Question 1 - 2007

Worked Solution & Example Answer:Final Accounts of a Company The following balances were extracted from the books of Jordan Ltd - Leaving Cert Accounting - Question 1 - 2007

Trading and Profit and Loss Account for the year ended 31/12/2006.

Balance Sheet of Jordan Ltd as on 31/12/2006

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