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Incomplete Records – Control Accounts Mary O’Driscoll did not keep a full set of books during the year ended 31/12/2009 - Leaving Cert Accounting - Question 6 - 2010
Question 6
Incomplete Records – Control Accounts Mary O’Driscoll did not keep a full set of books during the year ended 31/12/2009. The following is a summary of the cash acco... show full transcript
Worked Solution & Example Answer:Incomplete Records – Control Accounts Mary O’Driscoll did not keep a full set of books during the year ended 31/12/2009 - Leaving Cert Accounting - Question 6 - 2010
Step 1
Calculate Mary O’Driscoll’s Capital on 01/01/2009.
Answer
To calculate Mary O’Driscoll’s Capital as at 01/01/2009, follow these steps:
-
List All Assets:
- Bank: €24,900
- Premises: €430,000
- Delivery Vans: €72,000
- Debtors: €15,300
- Stock: €19,500
- Expenses due: €1,160
-
List All Liabilities:
- Creditors: €6,400
-
Calculate Capital:
Capital = Assets - Liabilities
Therefore:
Capital = (24,900 + 430,000 + 72,000 + 15,300 + 19,500 + 1,160) - 6,400 = €553,940
Step 2
Calculate Mary O’Driscoll’s Total Sales (credit and cash) and Total Purchases.
Answer
To calculate Total Sales and Total Purchases, use the following information:
-
Total Sales Calculation:
- Credit Sales = €64,500 + Cash Sales = €283,500
- Total Sales = 64,500 + 283,500 = €348,000
-
Total Purchases Calculation:
- Cash Purchases = €108,500 + Credit Purchases = €43,200
- Total Purchases = 108,500 + 43,200 = €151,700
Step 3
Prepare a Trading and Profit and Loss Account for the year ended 31/12/2009.
Answer
Trading and Profit and Loss Account for the year ended 31/12/2009:
| Items | € |
|---|---|
| Sales | 348,000 |
| Less: Cost of Sales | |
| Opening Stock | 19,300 |
| Add Purchases | 151,700 |
| Less: Closing Stock | 17,800 |
| Cost of Sales | 153,200 |
| Gross Profit | 194,800 |
| Less Expenses | |
| Wages and General Expenses | 68,000 |
| Add: Wages and General Expenses due | 6,000 |
| Less: Delivery Vans Depreciation | 14,400 |
| Net Profit | 117,390 |
Step 4
Prepare a Balance Sheet as at 31/12/2009.
Answer
Balance Sheet as at 31/12/2009:
| Fixed Assets | € |
|---|---|
| Premises | 430,000 |
| Delivery Vans | 60,000 |
| Furniture | 14,400 |
| Total Fixed Assets | 504,400 |
| Current Assets | € |
|---|---|
| Stock | 17,800 |
| Debtors | 12,600 |
| Bank | 166,700 |
| Total Current Assets | 197,100 |
| Less: Current Liabilities | € |
|---|---|
| Creditors (due within 1 year) | 6,870 |
| Net Current Assets | 190,230 |
| Total Assets less Current Liabilities | 694,630| | Financed by | | | Capital 01/01/2009 | 553,940 | | Net Profit | 117,390 | | Less Drawings | 10,000 | | Capital Employed | 661,330 |