|
Solution 11.3 Daniel King |
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|
|
Income Statement for year ended 31 December
|
|
€ |
€ |
€ |
|
|
Sales |
|
|
190,000 |
|
|
Less Cost of Sales |
|
|
|
|
|
Opening inventory |
|
20,000 |
|
|
|
Purchases |
30,000 |
|
|
|
|
Carriage Inwards |
0 |
30,000 |
|
|
|
Less Closing inventory |
|
(25,000) |
(25,000) |
|
|
Gross Profit |
|
|
165,000 |
|
|
|
|
|
|
|
|
Less Expenses |
|
|
|
|
|
Bad debts |
|
2,000 |
|
|
|
Motor Expenses |
|
6,000 |
|
|
|
Rates |
|
11,000 |
|
|
|
Insurance (€6000-€1500) |
|
4,500 |
|
|
|
Wages and salaries |
|
25,000 |
|
|
|
Bank charges |
|
1,000 |
|
|
|
Light and Heat (8,000 +2,000) |
|
10,000 |
|
|
|
Loan Interest |
|
5,000 |
|
|
|
Increase in Bad Debt Provision |
|
4,000 |
|
|
|
Depreciation of Vehicles 20% x 40,000 |
|
8,000 |
|
|
|
Depreciation of Equipment 10% x 60,000 |
|
6,000 |
|
|
|
Depreciation of furniture and fittings 5% x 60,000 |
|
3,000 |
85,500 |
|
|
|
|
|
|
|
|
Net Profit |
|
|
79,500 |
|
Statement of Financial Position as at 31 December
|
Non-current Assets |
Cost € |
Aggregate Depreciation € |
NBV € |
|
|
Premises |
150,000 |
|
150,000 |
|
|
Furniture and fittings |
60,000 |
23,000 |
37,000 |
|
|
Vehicles |
40,000 |
18,000 |
22,000 |
|
|
Equipment |
60,000 |
46,000 |
14,000 |
|
|
|
280,000 |
86,842 |
223,000 |
|
|
Current Assets |
|
|
|
|
|
Closing inventory |
|
25,000 |
|
|
|
Accounts receivable |
|
40,000 |
|
|
|
Less Bad Debt Prov. |
|
(4,000) 36,000 |
|
|
|
Prepayments |
|
1,500 |
|
|
|
Bank |
|
14,000 |
76500 |
|
|
|
|
|
299,500 |
|
|
Capital and Liabilities |
|
|
|
|
|
Capital |
|
|
150,000 |
|
|
Net Profit |
|
|
79,500 |
|
|
Less Drawings |
|
|
(12,000) |
|
|
|
|
|
217,500 |
|
|
Non-current Liabilities |
|
|
50,000 |
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
30,000 |
|
|
|
Accruals |
|
2,000 |
32,000 |
|
|
|
|
|
299,500 |
|
|
|
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