The financial position of Moore Ltd on 1/1/2010 is shown in the following Balance Sheet: Balance Sheet as at 1/1/2010 € € € Fixed Assets Land & buildings 50,000 11,000 39,000 Vehicles 20,000 20,000 0 Equipment 18,000 1,000 17,000 Current Assets Stock 80,000 Debtors (less provision 5%) 76,200 16,000 Less Creditors: amounts falling due within 1 year Creditors 65,000 Bank 24,000 Expenses due 2,500 91,500 Net Current Assets 64,500 Financed by Capital and Reserves Authorised - 700,000 Ordinary Shares @ €1 each 440,000 Issued - 440,000 Ordinary Shares @ €1 each 440,000 Share premium 20,000 Profit and Loss balance 170,500 Total 630,500 The following transactions took place during 2010: Jan - Leaving Cert Accounting - Question 7 - 2011

In February, Moore Ltd acquired a business for a total of €200,000 in buildings and €30,000 in equipment, along with debtors and creditors. The purchase was financed by issuing 18,000 shares at a premium of €0.20 each, which should be recorded in the Capital and Reserves section.

In April, a new provision of 7% of the debtors should be established. If debtors are valued at €76,200, the provision becomes €5,334, reducing net current assets accordingly.

In April, the vehicle worth €25,000 was traded in for a new vehicle costing €35,000. Depreciation amounting to €5,500 for the old vehicle should be accounted for, appropriately impacting the asset values.

In June, a stock adjustment for €600 should be recognized, affecting the current asset balance. The selling price implication is that this will reflect an increase in revenue in future accounts.

In November, the total depreciation charge, after accounting for previous entries, needs to be finalized. The calculation method will be straight line based, and the final amount must be included in the profit and loss statement.