Accounting
Autor: bettywap365 • 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:
- Closing stock for the 31/12/2015 = €147000.
- 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.
- Advertising for the year ended 30/04/2016 = €45000 (May 15 – April 16) prepaying €45000 ÷ 12 x 4 (January – April) = €15000.
- Rent receivable due = €900 we credit the rent receivable with €900 and debit the other debtors.
- Dividends are declared of 10% taking profit made for the year multiplying by 10%
- The provision for bad debts to be adjusted to 5% of debtors €135000 x 5% = 6750 – 4500=2250
- Interest due on term loan at the rate of 10% per annum = €300000 x 10% = €30000 x 3 ÷ 12 = €7500
- 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:
- Return on capital employment
Net profit before interest x tax * 100
Capital Employed 1
= 551442 x 100 = 30.3
1814448 1
- Acid test Ratio
Current assets less closing stock
Current liabilities
= 295650 – 147000 = 0.51
285900
- Rate of stock turnover
Cost of sales ÷ average stock (1/2 x opening + closing stock)
= 1290666 ÷ (0.5 x 138000 + 147000) = 3.5
142500
- Earnings per share
Profit after tax less preference dividend
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