T COOL

31-Dec-09
INVENTORY VALUATION
Note 1
€
Stock value at cost 5,295

Stock Item cost 295

Stock Item NRV:
Expected Sales Value 130
Less Repairs -30
NRV 100

ADJUSTMENT:
Deduct Cost -295
Add NRV 100

Final Stock Valuation 5,100

T COOL
31-Dec-09
ACCRUED EXPENSES
Note 4

Account Accrual
€
Salaries 640
T COOL
31-Dec-09
PREPAID EXPENSES
Note 5

Account Prepayments
€
Insurance 150
( €600 /12 x 3 months )
T. COOL
31-Dec-09
INCOME RECEIVED IN ADVANCE
Note 4

Account Income received in advance

€
Rent receivable 200
T. COOL
31-Dec-09
DEPRECIATION SCHEDULE
Note 3
Premises Furniture Motor Vehicle
€ € €
COST:
Balance 1 Jan 25,000 1,500 16,500
Acquisitions 0 0 0
Disposals 0 0 -6,500
Balance 31 Dec 25,000 1,500 10,000

DEPRECIATION:
Balance 1 Jan 0 600 7,400
Charge for Year 0 135 2,000
Released on disposal 0 0 -3,900
Balance 31 Dec 0 735 5500

NBV:
1-Jan 25,000 900 9,100
31-Dec 25,000 765 4,500
Total
€

43,000
0
-6,500
36,500

8,000
2,135
-3,900
6,235

35,000
30,265
31-Dec-09
ALLOWANCE FOR DOUBTFUL DEBTS
Note 6
€
Receivables 4,500
Specific allowance 100

Balance of other receivables 4,400

General Allowance 1% 44

Total allowance required 144

(Specific + General)

Balance of allowance at 1 Jan 70

Increase in Allowance required 74

T COOL
31-Dec-09
ERRORS
Note 2
DR CR
Sales 1,000
Disposal 1,000
Being cash received from Insurance re-MV scrapped

Disposal 6,500
Motor Vehicle 6,500
Being cost of motor vehicle scrapped

Calculate total depreciation on motor vehicle scrapped

from date of purchase:
1-Oct-06 Cost 6,500
31-Dec-06 Dep 20% 1300
31-Dec-07 Dep 20% 1300
31-Dec-08 Dep 20% 1300
31-Dec-09 Scrapped
3900

Depreciation Allowance 3,900

Disposal 3,900
Being total depreciation of motor vehicle scrapped

Calculate gain or loss on disposal of motor vehicle:

Cost 6,500
Total depreciation 3,900
NBV 2,600
Proceeds 1,000
Loss on Disposal 1,600

Income Statement 1,600

Disposal of MV 1,600
Being loss on disposal
T COOL
31-Dec-09
THE JOURNAL

Ref. ACCOUNT DR CR
€ €
1 Inventory 5,100
Income Statement 5,100
Being value of Closing stock

2 Income Statement 5,820

Inventory 5,820
Being value of Opening Stock transferred to cost of sales

3 Salaries 640
Accrued Expenses 640
Being accrued expenses at end of year

4 Prepaid Expenses 150

Insurance 150
Being prepaid expenses at end of year

5 Rent receivable 200

Income received in advance 200
Being income received in advance at end of year

6 Depreciation Charge for year 2,135

Depreciation Allowance:
Furniture 135
Motor Vehicle 2,000
Being depreciation charge for year

7 Income Statement 74
Allowance for Doubtful Debts 74
Being increase in allowance for doubtful debts

8 Sales 1,000
Disposal 1,000
Being cash received from Insurance re-MV scrapped

9 Disposal 6,500
Motor Vehicle 6,500
Being cost of motor vehicle scrapped

10 Depreciation Allowance MV 3,900

Disposal 3,900
Being total depreciation of motor vehicle scrapped

11 Income Statement 1,600

Disposal of MV 1,600
Being loss on disposal
T. COOL
31-Dec-09
EXTENDED TRIAL BALANCE

ACCOUNT TRIAL BALANCE Ref. JOURNAL INCOME STATEMENT (1) INCOME STATEMENT (2) BALANCE SHEET
DR CR DR CR DR CR DR CR DR CR
€ € € € € € € € € €
(INCOME STATEMENT)
Purchases 33,760 33,760
Sales 73,620 8 1,000 72,620
Inventory COS Adjustment 1,2 5,820 5,100 720
Salaries 7,320 3 640 7,960
Bad Debts 180 180
Insurance 3,210 4 150 3,060
General Expenses 4,000 4,000
Rent receivable 2,400 5 200 2,200
Commission receivable 720 720
Depreciation charge 6 2,135 2,135
Increase in All. For D.D. 7 74 74
Disposal of MV 8,9 6,500 1,000
10 3,900
11 1,600
Loss on Disposal 11 1,600 1,600

(BALANCE SHEET)
Capital 20,000 20,000
Drawings 5,250 5,250
Premises 25,000 25,000
Motor Vehicles 16,500 9 6,500 10,000
Furniture 1,500 1,500
Allowance for Dep:
Motor Vehicles 7,400 6, 10 3,900 2,000 5,500
Furniture 600 6 135 735
Receivables 4,500 4,500
Payables 6,800 6,800
All. For Doubtful debts 70 7 74 144
Inventory 5,820 1,2 5,100 5,820 5,100
VAT recoverable 420 420
Bank 3,960 3,960
Cash 190 190
Accrued Expenses 3 640 640
Prepaid Expenses 4 150 150
Income received in advance 5 200 200

Gross Profit 38,140

Net Profit 22,051

111,610 111,610 27,119 27,119 34,480 72,620 19,009 41,060 56,070 56,070

PROFIT 38,140 22,051

T. COOL
31-Dec-09 DEBITS +
EXTENDED TRIAL BALANCE CREDITS -

INCOME INCOME
TRIAL STATEMENT STATEMENT BALANCE
ACCOUNT BALANCE JOURNAL (1) (2) SHEET
€ Ref. € Ref. € Ref. € Ref. € € € €
(INCOME STATEMENT)
Purchases 33,760 33,760
Sales -73,620 8 1,000 -72,620
Inventory COS Adjustment 1 -5,100 2 5,820 720
Salaries 7,320 3 640 7,960
Bad Debts 180 180
Insurance 3,210 4 -150 3,060
General Expenses 4,000 4,000
Rent receivable -2,400 5 200 -2,200
Commission receivable -720 -720
Depreciation charge 6 2,135 2,135
Increase in All. For D.D. 7 74 74
Disposal of MV 8 -1,000 9 6,500 10 -3,900 11 -1,600 0
Loss on Disposal 11 1,600 1,600

(BALANCE SHEET)
Capital -20,000 -20,000
Drawings 5,250 5,250
Premises 25,000 25,000
Motor Vehicles 16,500 9 -6,500 10,000
Furniture 1,500 1,500
Allowance for Dep: 0
Motor Vehicles -7,400 6 -2,000 10 3,900 -5,500
Furniture -600 6 -135 -735
Receivables 4,500 4,500
Payables -6,800 -6,800
All. For Doubtful debts -70 7 -74 -144
Inventory 5,820 1 5,100 2 -5,820 5,100
VAT recoverable 420 420
Bank 3,960 3,960
Cash 190 190
Accrued Expenses 3 -640 -640
Prepaid Expenses 4 150 150
Income received in advance 5 -200 -200

Gross Profit -38,140

Net Profit -22,051

0 0 0 0 0 -38,140 -22,051 0
T. COOL
31-Dec-09
EXTENDED TRIAL BALANCE

Income
received
Accrued Prepaid in
ACCOUNT TRIAL BALANCE Ref. JOURNAL Expenses Expenses advance INCOME STATEMENT BALANCE SHEET
DR CR DR CR DR CR DR CR
€ € € € € € € €
(INCOME STATEMENT)
Purchases 33,760 33,760
Sales 73,620 8 1,000 72,620
Salaries 7,320 3 640 7,960
Bad Debts 180 180
Insurance 3,210 4 150 3,060
General Expenses 4,000 4,000
Rent receivable 2,400 5 200 2,200
Commission receivable 720 720
Depreciation charge 6 2,135 2,135
Increase in All. For D.D. 7 74 74
Disposal of MV 8,9 6,500 1,000
10 3,900 1,600

(BALANCE SHEET)
Capital 20,000 20,000
Drawings 5,250 5,250
Premises 25,000 25,000
Motor Vehicles 16,500 9 6,500 10,000
Furniture 1,500 1,500
Allowance for Dep:
Motor Vehicles 7,400 6, 10 3,900 2,000 5,500
Furniture 600 6 135 735
Receivables 4,500 4,500
Payables 6,800 6,800
All. For Doubtful debts 70 7 74 144
Inventory 5,820 1,2 5,820 5,100 5,100
VAT recoverable 420 420
Bank 3,960 3,960
Cash 190 190
Accrued Expenses 3 640
Prepaid Expenses 4 150
Income received in advance 5 200

Net Profit 22,051

111,610 111,610 13,609 13,609 640 150 200 58,589 80,640 56,070 56,070

PROFIT 22,051