Leaving Cert Accounting Service Firms: The following were included in t

Question

The following were included in the assets and liabilities of M. Casey, a dentist, on 1/1/2004:

Surgery €120,000; Equipment €60,000; Motor Car €24,000; Stock of Dental Materials €5,400; Owed from Medical Insurance Scheme €5,700; Creditors for Dental Materials €3,500; 5% Investments €80,000; Fees due from Private Patients €2,100; Capital €219,160.

The following is a Receipts and Payments Account of M. Casey for year ended 31/12/2004:

Receipts and Payments Account of M. Casey for year ended 31/12/2004:

Jan. 1	Balance at Bank	€ 6,760
      Receipts from Private Patients	 € 96,000
      Investment Income	 € 4,000
      Medical Insurance Scheme	 € 23,540
      Sale of Equipment (cost €18,000)	 € 9,000

€138,900

Dec. 31	Balance at Bank	€ 3,340
      Dental Materials	 € 14,000
      Telephone and Postage	 € 3,100
      Wages of Receptionist	 € 15,000
      Repayment of €40,000
      Loan as of 15/12/2004 with 3 years interest	 € 43,600
      Equipment	 € 22,000
      Light and Heat	 € 4,000
      Insurance	 € 2,360
      Technician's Fees	 € 13,800
      Drawings	 € 8,300

€138,900

The following information and instructions are to be taken into account:

(i) Stock of Dental Materials on 31/12/2004 was €4,900.

(ii) 70% of the Light and Heat and the Telephone and Postage relate to the dental practice with the remainder for personal use.

(iii) Depreciate fixed assets on 31/12/2004 as follows:
		20% of cost.
		Surgery	 2%
		Equipment	 25%
		Motor Car

Note: Fixed assets are given at cost and depreciation on them has been accumulated for 2 years to 31/12/2003. There is no depreciation on Equipment sold in the year of disposal.

(iv) Amounts due from Medical Insurance Scheme and Private Patients are €4,800 and €1,400 respectively.

(v) Creditors for Dental Materials on 31/12/2004 amounted to €3,500.

You are required to prepare:

(a) An Income and Expenditure Account for the year ended 31/12/2004.
(b) A Balance Sheet as at 31/12/2004.

Item	Cost (€)	Aggregate Depreciation (€)	Net (€)
Surgery	120,000	2,400	117,600
Equipment	60,000	15,000	45,000
Motor Car	24,000	4,800	19,200
Total Fixed Assets	204,000	22,200	181,800

The following were included in the assets and liabilities of M - Leaving Cert Accounting - Question 4 - 2005

Worked Solution & Example Answer:The following were included in the assets and liabilities of M - Leaving Cert Accounting - Question 4 - 2005

A Balance Sheet as at 31/12/2004

Fixed Assets

Investments

Current Assets

Total Assets

Liabilities

Financed By:

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Item	Net (€)
Bank	3,340
Investment Income	4,000
Stock	4,900
Medical Ins. Scheme	4,800
Private Patients	1,400
Total Current Assets	18,440