Leaving Cert Accounting Service Firms: Accounts of a Service Firm

The

Question

Accounts of a Service Firm

The following were the assets and liabilities of John Wallace, a doctor on 01/01/2014.

Buildings €310,000, Furniture €21,700, Motor Vehicles €28,000, Medical Equipment at cost €42,000, Cash at Bank €18,400, Amount due from Private Patients €1,600, Amount due from Medical Card Scheme €3,900.

Liabilities:
Light and Heat €300, Depreciation of Medical Equipment €9,500.

Required:
(a) Calculate Dr. Wallace’s Capital on 01/01/2014.

The following details were taken from his records on 31/12/2014:

Receipts €
Private Patients Fees 187,300
Medical Card Scheme 120,400

Payments €
Light and Heat 16,000
Medical Equipment 14,800
Telephone & Broadband 14,900
Motor Expenses 14,140
Magazines 1,400
Locum Fees (substitute Doctor) 12,000
Insurance 24,300
Wages of Office Staff 39,300

The following additional information is to be taken into account at 31/12/2014:
(i) Insurance prepaid was €2,000.
(ii) Amounts not yet paid to the Medical Equipment were €1,500.
(iii) Wages of Office Staff were €550.
(iv) Depreciation on the Medical Equipment (including additions) by 10% of cost was €4,200.
(v) Motor Vehicles by 20% of cost.

(b) Prepare Dr. Wallace’s Income and Expenditure Account for the year ended 31/12/2014.

Accounts of a Service Firm The following were the assets and liabilities of John Wallace, a doctor on 01/01/2014 - Leaving Cert Accounting - Question 2 - 2015

Worked Solution & Example Answer:Accounts of a Service Firm The following were the assets and liabilities of John Wallace, a doctor on 01/01/2014 - Leaving Cert Accounting - Question 2 - 2015

Calculate Dr. Wallace’s Capital on 01/01/2014

Assets

Liabilities

Capital Calculation

Prepare Dr. Wallace’s Income and Expenditure Account for the year ended 31/12/2014

Income

Expenditure

Calculation of Excess Income over Expenditure

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