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Tabular Statement The financial position of Harris Ltd on 1/1/2006 is shown in the following Balance sheet: Balance Sheet as at 1/1/2006 Fixed Assets € Land & Buildings 414,000 Vehicles 68,400 482,420 Current Assets Stock 53,820 Debtors 55,530 Advertising prepaid 1,350 Less Creditors: Amounts falling due within one year Creditors 8,580 Bank Overdraft 29,700 Wages due 2,160 (69,930) Net Current Assets 481,150 Financed By Capital and Reserves Authorised: 765,000 Ordinary Shares @ €1 each Issued: 387,000 Ordinary Shares @ €1 each Share Premium: 36,000 Profit and Loss Balance 58,050 The following transactions took place during 2006: Jan On 1/1/2006 Harris Ltd re-valued Land and Buildings at €520,000 - Leaving Cert Accounting - Question 4 - 2017
Question 4
Tabular Statement The financial position of Harris Ltd on 1/1/2006 is shown in the following Balance sheet: Balance Sheet as at 1/1/2006 Fixed Assets ... show full transcript
Worked Solution & Example Answer:Tabular Statement The financial position of Harris Ltd on 1/1/2006 is shown in the following Balance sheet: Balance Sheet as at 1/1/2006 Fixed Assets € Land & Buildings 414,000 Vehicles 68,400 482,420 Current Assets Stock 53,820 Debtors 55,530 Advertising prepaid 1,350 Less Creditors: Amounts falling due within one year Creditors 8,580 Bank Overdraft 29,700 Wages due 2,160 (69,930) Net Current Assets 481,150 Financed By Capital and Reserves Authorised: 765,000 Ordinary Shares @ €1 each Issued: 387,000 Ordinary Shares @ €1 each Share Premium: 36,000 Profit and Loss Balance 58,050 The following transactions took place during 2006: Jan On 1/1/2006 Harris Ltd re-valued Land and Buildings at €520,000 - Leaving Cert Accounting - Question 4 - 2017
Step 1
Record the transactions for August
Answer
In August, a reserve of €5,000 to cover unpaid income:
| Date | Description | Debit (€) | Credit (€) |
|------|----------------------------|---------------|---------------|
| Aug | Income Reserve | 5,000 | |
| | Accumulated Income | | 3,500 |
Calculating total assets and liabilities after all transactions, ensuring to summarize net assets accordingly.