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 Lily Moloney, a dentist, on 01/01/2019:

Buildings €400,000, furniture €23,400, motor vehicles €32,000, dental equipment at cost €55,000, depreciation of dental equipment €11,000, cash at bank €15,700, amount due from private patients €2,600, light and heat due €400, amount due from medical card scheme €5,900.

Required:

a) Calculate Lily Moloney’s capital on 01/01/2019. (20)  
The following details were taken from her records on 31/12/2019:

Receipts   €
Private patients’ fees   198,600  
Medical card scheme   134,700

Payments   €
Light and heat   18,300  
Dental equipment   15,000  
Telephone & broadband   7,200  
Motor expenses   12,900  
Magazines   11,300  
Dental materials   33,100  
Insurance   9,200  
Wages of office staff   24,300

The following additional information is to be taken into account at 31/12/2019:

(i) Amounts due from medical card scheme were €4,700.  
(ii) Electricity due €240.  
(iii) Wages of office staff due were €500.

Lily Moloney wishes to depreciate the dental equipment by 10% of cost and motor vehicles by 20% of cost.

b) Prepare Lily Moloney’s income and expenditure account for the year ended 31/12/2019. (40)

Calculate Lily Moloney’s capital on 01/01/2019

Assets:

Liabilities:

Total Calculation:

Capital Calculation:

Prepare Lily Moloney’s income and expenditure account for the year ended 31/12/2019

Income:

Expenditure:

Calculation of Excess Income over Expenditure:

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