Financial Accounting Sample Paper 21

8/13/2019 Financial Accounting Sample Paper 21

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Financial Accounting

Sample Paper 2Questions & Suggested Solutions


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Financial Accounting Sample Paper 2 Page 2of 31

NOTES TO USERS ABOUT SAMPLE PAPERS

Sample papers are published by Accounting Technicians Ireland. They are intended to provide guidance

to students and their teachers regarding the style and type of question, and their suggested solutions, in

our examinations. They are notintended to provide an exhaustive list of all possible questions that may

be asked and both students and teachers alike are reminded to consult our published syllabus (seewww.AccountingTechniciansIreland.ie) for a comprehensive list of examinable topics.

There are often many possible approaches to the solution of questions in professional examinations. It

should not be assumed that the approach adopted in these solutions is the only correct approach,

particularly with discursive answers. Alternative answers will be marked on their own merits.

This publication is copyright 2013 and may not be reproduced without permission of Accounting

Technicians Ireland.

Accounting Technicians Ireland, 2013.


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Accounting Technicians Ireland

Year1FINANCIALACCOUNTING

SamplePaper2EXAMDURATION:THREEHOURS

INSTRUCTIONTOCANDIDATESPLEASEREADCAREFULLY

In this examination paper the / symbol may be understood and used by candidates in NorthernIreland to indicate the UK pound sterling and by candidates in the Republic of Ireland to indicate

the Euro.

AnswerALLTHREEquestionsfromSectionA. AnswerANYTWOofthethreequestionsfromSectionB. Ifmore thanTWOquestionsareanswered insectionB, thenonly the first twoquestions,intheorderfiled,willbecorrected.Candidatesshouldallocatetheirtimecarefully.Allworkingsshouldbeshown.Allfiguresshouldbelabelledasappropriatee.g.s,unitsetc.Answers

should

be

illustrated

with

examples,

where

appropriate.


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SECTION A

Answer ALL THREE QUESTIONS (Compulsory) in this Section

QUESTION 1 (Compulsory)

a) Provide a definition of depreciation and explain why non current assets aredepreciated over their useful economic life.

5 Marks

b) The following information relates to the non current assets of Past EditionsLimited.

Fixtures &Fittings

Plant &Machinery

Cost at 1/1/2009 290,000 180,000

Accumulated depreciation as at 1/1/2009 70,000 74,656

Depreciation Policy Details are as follows:Past Editions Limited depreciates at the following rates:

Fixtures and fittings at 10% per annum straight line; Plant and machinery at 20% per annum straight line.

The depreciation policy of Past Editions Limited is to charge depreciationfrom the month of acquisition to the month of sale.

During the year to 31 December 2009 the following transactions relating tonon current assets occurred:

Fixtures and Fittings

An item of fixtures and fittings was purchased for 36,000 on 1 March 2009.Installation costs of 1,500 were incurred to bring the asset into workingcondition. The asset is to be depreciated in line with the companysdepreciation policy for fixtures and fittings.

Plant & MachineryAn item of machinery that originally cost 24,000 and with accumulateddepreciation of 11,600 as at 1 January 2009 was traded in on 30 June

2009 against a new machine that cost 32,000. A trade in of 8,400 wasachieved.


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QUESTION 1 (Contd)

Buildings

Past Editions Limited constructed a new building and the following costswere incurred:

Purchase of site 50,000; Site preparation 10,500; Raw material and labour costs 46,500; Architect fees 15,000.

The building was completed and Past Editions moved into the building on 1September 2009. It is estimated that the building will have a usefuleconomic life of 50 years and a residual value of 20,000.

You are required to prepare the following nominal ledger accounts of PastEditions for the year ended 31 December 2009:

i. Buildings: cost account;2 Marks

ii. Fixtures and fittings: cost account;1 Mark

iii. Plant and machinery : cost account;3 Marks

iv. Buildings: accumulated depreciation account;2 Marks

v. Fixtures and fittings: accumulated depreciation account;2 Marks

vi. Plant and machinery : accumulated depreciation account;3 Marks

vii. Disposal of plant and machinery account.2 marks

Total 20 Marks


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QUESTION 2 (Compulsory)

The following information relates to the receivables and payables of John Forman, a

sole trader, for the year ended 31 December 2009:

Extract from the books as at 1 January 2009:

Receivables ledger debit balances 200,000 Dr

Receivables ledger credit balances 20,000 Cr

Payables ledger credit balances 180,000 Cr

Payables ledger debit balances 80,000 Dr

Transactions for the year ended 31 December 2009:

Sales on credit 1,400,000

Sales returns (all credit) 80,000

Purchases on credit 900,000

Purchases returns (all credit) 40,000

Amounts received from receivables 1,200,000

Discounts allowed to receivables 20,000

Discounts allowed by payables 30,000

Irrecoverable debts written off 60,000

Interest charged by a payable for late payment of accounts 6,000

Discount received subsequently disallowed 3,000

Payments to payables 750,000

Dishonoured cheque received from a receivable (included in theamounts received from receivables above) 12,500

Cash sales 17,200

Contra entry between receivable and payable balances 4,890

Closing allowance for receivables 16,700

Additional Information A receivables balance 3,495 was omitted from the list of debit balances as

at 1 January 2009. At 31 December 2009 the total of the credit balances in the Receivables

ledger was 30,000 and the total of the debit balances in the Payablesledger was 12,000.

You are required to:

a) Prepare the receivables and payables control accounts for Mr. Forman forthe year ended 31 December 2009.

16 Marks

b) Explain why a company should prepare control accounts.4 Marks

Total 20 Marks


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QUESTION 3 (Compulsory) - Complete Any Four Parts

Part A

Write a note on your understanding of the terms financial accounting andmanagement accounting. As part of your discussion you should provide an example

of the type of information provided by financial and management accounting.5 Marks

Part BSeveral user groups of financial accounting information have been identified. Two ofthese are investors and lenders. Write a brief note on both of these users of

financial accounting information including the key accounting information requiredby each user and why each user requires the information.

5 Marks

Part COutline your understanding of the term external audit and explain why carrying out

an external audit annually is important for many companies.5 Marks

Part DThe concept that the financial statements of an entity represent a true and fair viewis fundamental to financial accounting. Outline your understanding of the term trueand fair view as it relates to financial accounting.

5 Marks

Part ESeveral characteristics of accounting information have been identified. Two of these

are comparability and reliability. Write a brief explanation of these terms as theyrelate to financial accounting information.

5 Marks

Part F

Over time several accounting concepts and conventions have developed. With the

aid of examples, where appropriate, write a note on any two of the followingconcepts/conventions:

i Going concern;ii Prudence;

iii Materiality.

5 MarksTotal 20 Marks


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SECTION B

Answer any TWO of the three questions in this Section

QUESTION 4

The following trial balance was extracted from the books of T Higgins on 31December 2009:

Buildings at cost 132,000Accumulated depreciation on buildings 38,000

Delivery vans at cost 25,000Accumulated depreciation on delivery vans 8,000Inventories as at 1/1/2009 25,800Receivables and payables 18,700 36,200

Bank 3,150Purchases and sales 293,000 374,790General expenses 6,375

Discounts received 350Carriage inwards 3,600Insurance 3,900VAT 2,450Interest 1,300Wages and salaries 41,000

Allowance for receivables 1/1/09 1,050Irrecoverable debts 700Drawings 12,300

Capital 99,685

563,675 563,675

The following information, which has not been accounted for above, is also

available:

1. Inventory at 31 December 2009 at cost was 32,950. This figure includesdamaged inventory items that cost 7,800 and that is now worth only

3,000.2. During the year T. Higgins took inventory items for his personal use valued

at 5,400. This has not been accounted for.3. The bank figure in the trial balance, when compared to the bank statement,

revealed that the following adjustment is required: A direct debit charge posted by the bank for 370 has not been

entered in the books of T. Higgins.

4. An amount of 600 had been received in respect of a debt previously writtenoff. This receipt has not been recorded in the books.

5. The allowance for receivables is to be adjusted to 4% of receivables


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QUESTION 5

AA Rumble is an old fashioned business with a hand written set of books and

records. A trial balance is extracted at the end of every month. This month(December 2009), however, the trial balance did not balance. The balance in thesuspense account was 7,485 credit. The draft loss for the month of December

2009 was 12,540 before accounting for the transactions below.

Upon inspection of the ledgers the following items were discovered:

1. An item of office machinery purchased during the month for 5,500 wascredited to the machinery repairs account. The machinery was purchased on

credit and the entry in the suppliers account was entered correctly.2. The total of the receipts side of the cash book was overcast by 7,300.3. A discount received from J Morgan for 175 had been treated as a discount

allowed to J Moran in the personal accounts and in the nominal ledger.

4. An invoice for light and heat for the month for 1,420 was found in a filing tray.The invoice has not yet been accounted for, nor the supplier paid as at themonth end.

5. A cheque received from Mr. Smith for 6,450 in payment for goods previouslysold to him was treated correctly in the cash book. However in Mr. Smithspersonal account it was treated as the sale of additional goods and posted tothe incorrect side of the account. The sales account was not affected.

6. Due to a totting error the balance in the allowance for receivables account isunder cast by 985;

7. Due to cash flow problems, AA Rumble introduced 14,700 in cash into thebusiness. The transaction was entered correctly in the cash book but wascredited the capital account as 17,400.

(Ignore the affects of VAT and depreciation)


a) Prepare the journal entries necessary to correct the above errors.11 Marks

b) Prepare a Suspense Account to clear the difference5 Marks

c) State the effect on profits (if any) of correcting each of the above errors.4 Marks

Total 20 Marks


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QUESTION 6

The following information is available for All Lawns Tennis Club for the year to 31

December 2009.

Receipts and Payments Account

Details Details

Balance c/d ??? Light and heat 5,100Subscriptions received: Repairs of clubhouse 11,350- Ordinary (annual) 79,200 Barperson salaries 31,600

Bar takings 198,750 Insurance (30% relates to bar) 19,850Bar purchases 72,800Club secretary expenses 11,470

Lawn maintenance 7,820Bar cleaning expenses 4,670Closing bank balance b/d 121,240

285,900 285,900

Opening balance b/d 121,240

Other assets and liabilities of the club are as follows:1/1/09 31/12/09

Clubhouse building at cost 110,200 110,200

Bar inventories 9,700 10,200Bar purchases payables 7,540 6,310Subscriptions in advance 1,540 2,300Subscriptions in arrears 3,560 5,560

Accruals light and heat 650 540

Notes:1. No depreciation is charged on the clubhouse.


a) Calculate the accumulated fund as at 1 January 2009.6 Marks

b) Prepare a bar trading account for the year ended 31 December 2009.5 Marks

c) The clubs income and expenditure account for the year end 31 December2009 and the statement of accumulated fund as at that date.

9 MarksTotal 20 Marks


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Financial Accounting

Sample Paper 2 Suggested Solutions


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Solution One (contd)

Building Accumulated Depreciation Account

Date Details Date Details

31/12/09 Balance 680 31/12/09 Statement ofProfit & Loss

680

680 680

1/1/2010 Balance 680

Buildings depreciation calculation:

122,000 20,000 = 2,040 * 4/12 = 68050

Fixtures and Fittings

Fixtures & Fittings Cost Account


1/1/09 Balance b/d 290,0001/3/09 Additions 37,500 31/12/09 Balance c/d 327,500

327,500 327,500

1/1/2010 Balance b/d 327,500

Fixtures and Fittings Accumulated Depreciation Account


1/1/09 Balance b/d 70,00031/12/09 Balance 102,125 31/12/09 I/S charge 32,125

102,125 102,125

1/1/2010 Balance 102,125

Depreciation on additions

37,500 * 10% = 3,750 * 10/12 = 3,125

Deprecation on existing (continuing) non current assets

290,000 * 10% = 29,000


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Total depreciation

Additions 3,125Existing assets 29,000

Total depreciation 2009 32,125

Plant and Machinery

Plant and Machinery Cost Account


1/1/09 Balance b/d 180,000 30/6/09 Disposal 24,00030/6/09 Additions 32,000 31/12/09 Balance c/d 188,000

212,000 212,000

1/1/2010 Balance b/d 188,000

Plant and Machinery Accumulated Depreciation Account


30/6/09 Disposal 14,000 1/1/09 Balance b/d 74,656

31/12/09 Balance 97,456 31/12/09 I/S charge 36,800

111,456 111,4561/1/2010 Balance 97,456

Depreciation on additions

32,000 * 20% = 6,400 * 6/12 = 3,200

Depreciation on disposals

24,000 * 20% = 4,800 * 6/12 = 2,400

Deprecation on existing (continuing) non current assets

180,000 24,000 * 20% = 31,200


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Total depreciation

Additions 3,200Disposals 2,400Existing assets 31,200

Total depreciation 2009 36,800

Plant and Machinery Disposal Account


30/6/09 Cost 24,000 30/6/09 AccumulatedDepreciation

14,000

30/6/09 Trade in 8,40030/6/09 I/S 1,600

24,000 24,000


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Solution Two (contd)

2. Control accounts are a means of proving the accuracy of the ledger accountsof receivables and payables. As a result this is a control mechanism toensure accuracy of the receivables and payables personal ledgers. This

control assists in the location of errors.

3. Control accounts can also act as an internal check, i.e. the person postingentries to the control account acts as a check on a different person whoposts amounts from the daybooks to the personal ledgers.


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Solution Three

Part A

There are two broad types of accounting information:

Financial accounting is based upon meeting the informational requirements of

external users of accounting information for example payables, lenders and thegovernment. Financial accounting is presented to external users in the form offinancial statements. In order to facilitate comparison, financial accounts are

prepared using accepted accounting conventions and standards. InternationalFinancial Reporting Standards (IFRSs) help to reduce the differences in the waycompanies prepare their financial statements. The financial statements are public

documents. An example of the type of information provided by financial accountingis whether the business entity made a profit or loss during the financial period. Thisinformation is provided by the Statement of Profit and Loss.

Management accounting is based upon meeting the informational needs of internalusers of accounting information for example management. Management needsmuch more detailed and up-to-date information in order to control the business and

plan for the future. They need to be able to cost products and assess profitability.In order to facilitate this, management accounts present information in any waythat may be useful to management and in most cases to the specifications ofmanagement. Such information is only available within the company and usually isstrategic in nature. An example of the type of information provided by management

accounting is the financial budgets for the upcoming financial year.

Part B

LendersBanks who lend money to a business require information initially to help the lenderassess whether the bank should extend the credit to the business entity or not.Once the loan has been extended lenders require information that helps them

determine whether loans and interest will be paid when due. The key accountinginformation for lenders is therefore, existing levels of debt and the cash flow of thebusiness. Cash flow is probably the most important piece of information required bylenders as loans and interest are repaid out of the cash flow of the business entity.

InvestorsInvestors are fundamentally the owners of the business. Investors invest money in

a business in return investors usually receive dividends from the business and mayenjoy an increase in the market value of their investment. Thus investors areconcerned about the risk and return in relation to their investment in the business.They require information to help them assess whether a business will be able to

pay dividends and to measure the performance of the business. The key accountinginformation for investors is therefore information about business and sales growth,the profitability of the business and comparisons with other business entities.Comparisons with other business entities is important as investors can, in manycases, decide to sell their investment in one business entity and chose to invest in

another business entity where rates are return are more attractive.


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Solution Three (contd)

Part C

Limited liability companies may have thousands of shareholders who are theowners of the company. These shareholders elect directors to run the company forthem on their behalf. The directors run the company and report back to the

shareholders on an annual basis on the companys performance, position andliquidity.

Directors have complete access to all information about the companysperformance, and are being rewarded based on how well the company performs.There is a bias for directors to portray the best financial picture possible in the

financial statements and a danger that directors may act in their own privateinterests, rather than those of the shareholders. This scenario is referred to as anagency problem.

The auditing process strives to provide a high level of assurance to users offinancial accounting information by providing an independent examination of thecompanys books and financial statements. The auditor examines the books and

financial statements of the company and forms an opinion expressed in the auditreport as to whether the financial statements of the company gives a true and fairview of the state of affairs of the company at the end of the accounting year. Theaudit report gives shareholders an impression as to the extent to which they canrely upon the financial statements prepared and presented to them by the

directors.

Part DThe overall aim of the regulatory environment is that the financial statements of anentity give a true and fair view of the underlying financial performance and positionof the entity. While there is no formal definition for True and Fair view compliance

with accounting standards and Company Law will normally be necessary forfinancial statements to give a true and fair view. True and fair refers to the financialstatements and that the picture they portray of the underlying companyperformance (profitability) and position is in fact a true and fair view

representation.

In order to ensure that the financial statements of a company are true and fair the

financial statements, of many companies, must by law be reviewed by anindependent auditor. The overall aim of all accounting regulation is thus to insurethat the financial statements of a business represent a true and fair view of thefinancial health of the business. This is crucial if the users of accounting information

are to rely and make decision based upon the information presented to them in thefinancial statements.


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Solution Three (contd)

Part E

ReliabilityReliable information has the following five characteristics:

1. It can be depended upon by users of accounting information to faithfullyrepresent what it either purports to represent or could reasonably be

expected to represent that is that the information is not misrepresented ormisleading.

2. It is free from deliberate or systematic bias - that is it is neutral.

3. It is free from material error. Users of accounting information can bereasonably assured that this is the case if the financial statements are

accompanied by a clean (unqualified) audit report.

4. It is complete within the bounds of materiality. Small assets may be

excluded for example the companys stock of paper clips, as this omissionwould not have a material effect on the financial picture of the entityportrayed in the financial statements.

5 In its preparation under conditions of uncertainty, a degree of caution that isprudence has been applied in exercising judgement and making the

necessary estimates.

ComparabilityBy examining an entitys financial statements for one accounting year an individualwould gain a relatively small amount of insight in terms of the financialperformance and position of the company. In order for financial information to be

useful it must be comparable with the financial information of the entity in previousaccounting period and with other entities in the same industry. By comparing thefinancial information of the entity over time one can assess trends and bycomparing the financial of the entity with other entities we can assess how the

entity is performing compared to its competitors. To be truly useful financialinformation must be comparable.


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Solution Three (contd)Part F - Any two of the following

Going ConcernGoing concern states that when preparing a set of financial statements accountantsassume, unless there is evidence to the contrary, that a company is not going out

of business and that it will continue in operational existence for the foreseeablefuture (twelve months from the date the financial statements are signed) and thereis no intention to put the company into liquidation. This has important implications

for the valuation of assets and liabilities, for example assets can be valued at theirvalue in use to the business as opposed to the net realisable value. Financialstatements have to be prepared in accordance with the going concern concept.

PrudenceIn conditions of uncertainty, a cautious approach should be taken, so that gains

and assets are not overstated and losses and liabilities are not understated. Thismeans that sales and profit should not be included in the Statement of Profit & Lossuntil the cash has been received or there is reasonable certainty that the cash will

be received. In contrast, losses should be recognised in the Statement of Profit &Loss as soon as they are foreseen and considered reasonably certain.

Prudence is the exercise of sound judgement in practical affairs. For example: ifpost year end inventory items were sold for less than cost, prudence would dictatethat year end value of the inventory was written down to the net realisable value of

the inventory. Hence ensuring that the value of year end assets (inventory) wasnot overstated and that profits were not over stated (closing inventory forms partof the profit calculation in the cost of sales section). It is important to note that

prudence need only be applied under conditions of uncertainty. Where there is nouncertainty there is no need to apply prudence.

MaterialityMateriality is an important convention. Information is material to the financialstatements if its omission or misstatement could influence the economic decisionsof users. Information can be material in terms of its size in relation to the financial

statements as a whole or an item could be material by its nature, transactioninvolving directors are normally considered to be material by their nature. Theunderstandability of financial statements is improved if only material items are

included as separate line items within the financial statements. If immaterialinformation is included as separate line items within the financial statements usersmay not be able to interpret the picture given by the accounts as a whole.


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Solution Four (contd)

T. Higgins

Statement of Financial Position as at 31 December 2009

2009 2009 2009

Non current assets

Buildings 132,000 (40,640) 91,360

Delivery vans 25,000 (10,550) 14,450

105,810

Current assetsClosing inventory 28,150Receivables 17,952

Prepayments 75046,852

Total Assets 152,662

Equity and LiabilitiesCapital

Capital 99,685Profit for 2009 28,657

128,342

Drawings (17,700) 110,642

Current liabilities

Payables 36,200Bank overdraft 2,920VAT 2,450Accruals 450

42,020

Total Equity and Liabilities 152,662

Workings 1

Closing inventory as per question: 32,950

Less write down of inventory (4,800)

28,150


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Workings 2

Purchases as per TB 293,000

Drawings (5,400)

287,600

Drawings

Drawings as per TB 12,300

Drawings as per W2 5,400

Total drawings 17,700

Working 3 and 4

New expense of 370 in the Statement of Profit & Loss:

Bank as per TB O/D 3,150

Bank charges not accounted for 370

3,520

Irrecoverable debt recovered (600)

Restated bank balance (overdraft) 2,920

Workings 5

Receivables as per TB 18,700

Allowance for receivables 4% 748

Opening allowance for receivables 1,050

Decrease in allowances for receivables 302

Workings 6

Cost of buildings 132,000

Depreciation 2% SL 2,640

Cost of delivery vans 25,000

Accumulated depreciation (8,000)

NBV 17,000

Depreciation 15% RBM 2,550


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Workings 7

Insurance as per TB 3,900

Insurance prepaid as per w7 (750)

3,150

Carriage inwards as per TB 3,600

Carriage inwards accrued as per w7 4504,050


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Solution Five

Part A

Debit Credit

1.

Dr Machinery repairs 5,500Dr Machinery at cost 5,500Cr Suspense 11,000

Being an error of principle

2.

Dr Suspense 7,300Cr Bank/cash book 7,300

Being the a correction of error cash book overcast

3.

Dr J Morgan 175Dr J Moran 175

Cr Discount received 175Cr Discount allowed 175

Being the correction of error discount incorrectly treated in personalaccounts and nominal

4.

Dr Light and heat 1,420Cr Other payables 1,420

Being an error of omission

5.

Dr Suspense 12,900Cr Mr Smith 12,900

Being cash receipts treated as additional sales in error

6.

Dr Suspense 985

Cr Allowance for receivables 985Being correction of error, allowance for receivables under cast

7.Dr Capital 2,700Cr Suspense 2,700

Being the correction of an error of transposition


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Solution Five (contd)

Part B

Suspense Account

Details Details

Journal 2 7,300 Opening balance 7,485Journal 5 12,900 Journal 1 11,000Journal 6 985 Journal 7 2,700

21,185 21,185

Part C

Draft loss for December 2009 (12,540)Journal 1 (5,500)Journal 2 -Journal 3 350

Journal 4 (1,420)

Journal 5 -Journal 6 -

Journal 7 -

Loss after adjustments (19,110)


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Solution Six

Part A

Calculate the opening cash balance:

Receipts and Payments Account

Details Details

Balance c/d 7,950 Light and heat 5,100Subscriptions received: Repairs of clubhouse 11,350- Ordinary (annual) 79,200 Barperson salaries 31,600

Bar takings 198,750 Insurance (30% relates to bar) 19,850Bar purchases 72,800Club secretary expenses 11,470

Lawn maintenance 7,820Bar cleaning expenses 4,670Closing bank balance b/d 121,240

285,900 285,900

Opening balance b/d 121,240

Calculate opening accumulated funds:

AssetsClubhouse 110,200

Bar inventory 9,700Subs in arrears 3,560Cash/bank 7,950

131,410

Liabilities

Bar purchases payable 7,540Subs in advance 1,540Light and heat accruals 650

(9,730)

Accumulated funds 1/1/09 121,680


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Solution Six (contd)

Part B

Bar Payables Control Account

Details Details

Cash paid for purchases 72,800 Balance b/d 7,540

Balance c/d 6,310 Purchases 71,570

79,110 79,110

Balance b/d 6,310

All Lawns Tennis ClubBar trading account for the year ended 31 December 2009

Bar sales 198,750

Cost of salesOpening inventory 9,700Purchases 71,570

81,270

Less closing inventory (10,200)

Cost of sales (71,070)

Gross Profit 127,680

Less expensesBarpersons wages 31,600

Insurance 5,955Bar cleaning 4,670

(42,225)

Bar profits 85,455

Part C

Subscriptions Account

Details Details

Opening subs in arrears 3,560 Opening subs in advance 1,540I/S value for subs 80,440 Cash received for subs 79,200Closing subs in advance 2,300 Closing subs in arrears 5,560

86,300 86,300

Opening subs in arrears 5,560 Opening subs in advance 2,300


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Solution Six (contd)

Income and expenditure account for the year to 31 December 2009

IncomeSubscriptions 80,440

Bar profits 85,455165,895

Expenditure

Light and heat 4,990Repairs 11,350Insurance 13,895

Club secretary expenses 11,470Lawn maintenance 7,820

(49,525)Excess of income over expenses 116,370

All Lawns Tennis Club

Accumulated Fund Statement as at 31 December 20092009 2009 2009

Non current assets

Buildings 110,200 110,200

Current assets

Bar closing inventory 10,200Subs in arrears 5,560

Bank 121,240137,000

Total Assets 247,200

Equity and LiabilitiesAccumulated Fund/CapitalOpening accumulated fund 1/1/09 121,680

Excess of income over expenditure 2009 116,370238,050

Current liabilities

Bar payables 6,310

Subs in advance 2,300Accruals 540

9,150Total Equity and Liabilities 247,200

Documents

Financial Accounting Sample Paper 21