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Accounting

Autor:   •  March 7, 2016  •  Coursework  •  476 Words (2 Pages)  •  927 Views

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Elizabeth O’Neill

BL5

Accounting Manual and computerised 5N1348

Additional Information:

  1. Closing stock for the 31/12/2015 = €147000.

  1. Provide for taxation = €102000 this is an expense and a liability and is placed in the debit account we then credit the taxation due which on the balance sheet.
  1. Advertising for the year ended 30/04/2016 = €45000 (May 15 – April 16)                            prepaying €45000 ÷ 12 x 4 (January – April) = €15000.
  1. Rent receivable due = €900 we credit the rent receivable with €900 and debit the other debtors.
  1. Dividends are declared of 10% taking profit made for the year multiplying by 10%
  1. The provision for bad debts to be adjusted to 5% of debtors                                                    €135000 x 5% = 6750 – 4500=2250
  1. Interest due on term loan at the rate of 10% per annum = €300000 x 10% = €30000 x 3 ÷ 12 = €7500
  1. Depreciation:
  • Motor Vehicles: €228000 - €48000 = €180000 x 20% = €36000. I calculated the book value when I lessened motor vehicles from acc depr on motor vehicles and received my book value that I multiplied by 20%.
  • Equipment: €84000 x 10% = 8400 10% of cost.
  • Buildings: 2% of cost = €1850100 x 2% = €37002

Ratios:

  1. Return on capital employment

Net profit before interest x tax * 100 

Capital Employed                              1           

= 551442 x 100 = 30.3

   1814448    1

  1. Acid test Ratio

Current assets less closing stock 

Current liabilities                              

= 295650 – 147000 = 0.51

             285900

  1. Rate of stock turnover

Cost of sales ÷ average stock (1/2 x opening + closing stock)  

= 1290666 ÷ (0.5 x 138000 + 147000) = 3.5

                 142500

  1. Earnings per share

Profit after tax less preference dividend

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