Solution 11.4 – Casey’s Hotel
Income Statement for year ended 31 August
|
|
€ |
€ |
|
Sales |
3,335,000 |
|
|
Sales returns |
(65,000) |
3,270,000 |
|
Less cost of goods sold |
|
|
|
Opening inventory |
|
|
|
Purchases |
2,370,000 |
|
|
Closing inventory |
75,000 |
2,295,000 |
|
Gross Profit |
|
975,000 |
|
Discount received |
27,000 |
|
|
Reduction in provision for bad debts |
500 |
|
|
Rent receivable (36 + 3) |
39,000 |
66,500 |
|
Less expenses |
|
|
|
Wages and salaries |
178,000 |
|
|
Admin expenses (177 + 9) |
186,000 |
|
|
Rent |
90,000 |
|
|
Repairs |
18,000 |
|
|
Discount all |
33,000 |
|
|
Carriage out |
38,000 |
|
|
Provision for discount (2% x 256.5) |
5,130 |
|
|
Provision for depreciation -furniture & fittings |
52,500 |
|
|
Provision for depreciation -plant & equipment |
164,000 |
(764,630) |
|
Net profit |
|
276,870 |
Statement of Financial Position as at 31 August
|
|
€ |
€ |
€ |
|
Non-current assets |
Cost |
Acc Dep |
NBV |
|
Furniture & Fittings |
450,000 |
(292,500) |
157,500 |
|
Plant and equipment |
820,000 |
(464,000) |
356,000 |
|
|
1,270,000 |
(756,500) |
513,500 |
|
Current assets |
|
|
|
|
Inventory |
|
75,000 |
|
|
Accounts receivable |
270,000 |
|
|
|
Less provision for bad debts |
(13,500) |
|
|
|
Less provision for discount |
( 5,130) |
251,370 |
|
|
Rent receivable |
|
3,000 |
329,370 |
|
|
|
|
842,870 |
|
Capital and Liabilities |
|
|
|
|
Capital |
|
|
400,000 |
|
Net profit |
|
|
276,870 |
|
Drawings |
|
|
(18,000) |
|
|
|
|
658,870 |
|
Current liabilities |
|
|
|
|
Accounts payable |
|
168,000 |
|
|
Accruals |
|
9,000 |
|
|
Bank |
|
7,000 |
184,000 |
|
|
|
|
842,870 |
|
|
|
|
|