Leaving Cert Accounting Published Accounts: Published Accounts
Atkinson plc

Question

Published Accounts
Atkinson plc has an authorised share capital of €900,000 divided into 600,000 ordinary shares at €1 each and 300,000 8% preference shares at €1 each. The following trial balance was extracted from the books at 31/12/2015.

€
Vehicles at cost 104,000
Vehicles - accumulated depreciation on 01/01/2015  104,000
€ Investments 250,000
Buildings at cost 960,000
Buildings - accumulated depreciation on 01/01/2015  2,540
Debtors 129,000
Stock  91,000
Patent  40,000
Administrative expenses 203,000
Distribution costs 121,000
Purchases and sales 1,165,000 1,799,700
Rental income 46,000
Profit on the sale of land 35,000
Dividends paid 43,000
Bank 90,000
VAT 21,300
Profit and loss account at 01/01/2015  72,000

Issued capital
Ordinary shares 480,000
8% Preference shares 120,000
7% Debentures 2018/2019  150,000
Discount 12,200
Debenture interest paid 13,000

The following information is relevant:
(i) Stock on 31/12/2015 is €76,000.
(ii) The building was acquired on 01/01/2011 for €677,000. It is being amortised over 7 years in equal instalments and this amortisation is to be included in cost of sales.
(iii) The firm’s other income includes rental income, and auditors’ fees €18,000.
(iv) Administrative expenses include expenses to the receipt of €8,250 for rental income.
(v) The company has a claim from a former employee of €65,000 who was dismissed unfairly. The company's legal advisers have estimated that the company is likely liable for the full €60,000 of the claim.

Required:
(a) Prepare the published profit and loss account for the year ended 31/12/2015 and a balance sheet as at 31/12/2015 in accordance with the Companies Acts and appropriate accounting standards.

(b) (i) Explain why it is important that financial statements are properly regulated.
(ii) How does the European Union regulate the presentation of accounts?

Published Accounts Atkinson plc has an authorised share capital of €900,000 divided into 600,000 ordinary shares at €1 each and 300,000 8% preference shares at €1 each - Leaving Cert Accounting - Question 7 - 2016

Worked Solution & Example Answer:Published Accounts Atkinson plc has an authorised share capital of €900,000 divided into 600,000 ordinary shares at €1 each and 300,000 8% preference shares at €1 each - Leaving Cert Accounting - Question 7 - 2016

How does the European Union regulate the presentation of accounts?

EU Regulation of Accounting Presentation

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