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Incomplete Records - Control Accounts Mary Henderson did not keep a full set of books during the year ended 31/12/2014 - Leaving Cert Accounting - Question 7 - 2015
Question 7
Incomplete Records - Control Accounts Mary Henderson did not keep a full set of books during the year ended 31/12/2014. The following is a summary of the cash accou... show full transcript
Worked Solution & Example Answer:Incomplete Records - Control Accounts Mary Henderson did not keep a full set of books during the year ended 31/12/2014 - Leaving Cert Accounting - Question 7 - 2015
Step 1
Prepare a Balance Sheet as at 31/12/2014.
Answer
The Balance Sheet of Mary Henderson as at 31/12/2014 is as follows:
Balance Sheet Structure:
Fixed Assets:
- Premises: €490,000
- Equipment (after depreciation): €21,000 - €5,250 = €15,750
- Motor Vans: €216,700
Total Fixed Assets:
Current Assets:
- Closing Stock: €13,200
- Debtors: €69,800
- Bank: €14,900
- Expenses prepaid: €700
Total Current Assets:
Total Assets Calculation:
Liabilities:
- Creditors: €7,800
Net Worth Calculation:
- Capital: €569,000
- Net Loss: €21,850
Final Balance Sheet:
- Total Liabilities + Net Worth = €7,800 + €569,000 - €21,850 = €554,650
Thus, this leads to a balanced Sheet of €550,650.