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 Mary O’Donnell, a dentist on 01/01/2009.

Buildings €450,000, Furniture €16,400, Motor Vehicles €36,000, Amounts due from private patients €1,200, Cash at Bank €11,200, Dental Equipment €28,000, Electricity due €600.

You are required to:

(a) Calculate Mary O Donnell’s capital on 01/01/2009

The following details were taken from her records on 31/12/2009:

Receipts                                   €         Payments                                       €
Private patients’ fees               220,400   Purchase of Dental Equipment      12,000
Medical Card Scheme               104,900   Electricity                                           14,500
                                                             Dental Materials                          34,200
                                                             Insurance                                       6,000
                                                             Telephone                                    4,900
                                                             Motor Expenses                          22,100
                                                             Technicians fees                           24,700
                                                             Magazines                                    750

The following additional information is to be taken into account at 31/12/2009:

(i) Stock of dental materials was valued at €3,400.
(ii) Private patients were €6,700.
(iii) Insurance prepaid €1,000.
(iv) Depreciation: 10% of cost and the Motor Vehicles 20% of cost.

You are required to:

(b) Prepare O’Donnell’s income and expenditure account for the year ended 31/12/2009.

Accounts of a Service Firm The following were the assets and liabilities of Mary O’Donnell, a dentist on 01/01/2009 - Leaving Cert Accounting - Question 4 - 2010

Worked Solution & Example Answer:Accounts of a Service Firm The following were the assets and liabilities of Mary O’Donnell, a dentist on 01/01/2009 - Leaving Cert Accounting - Question 4 - 2010

Calculate Mary O Donnell’s capital on 01/01/2009

Prepare O’Donnell’s income and expenditure account for the year ended 31/12/2009

Join the Leaving Cert students using SimpleStudy...