Solution 14.8 – PLEASURE EVENTS

(a) Statement of Comprehensive Income
		€	€
Revenue/Sales			550,000
Less Cost of Goods Sold
Opening Stock		45,000
Add Purchases		210,000
		255,000
Less Closing Stock		55,000	200,000
Gross Profit			350,000
Less Expenses:
Motor Expenses		20,000
Directors Remuneration (100,000 + 10,000)		110,000
Rates		25,000
Wages & Salaries		65,000
Light & Heat (16,000 + 4,500)		20,500
Insurance		14,000
Increase in Provision for Doubtful Debts		3,000
Bad Debts written off		4,000
Depreciation:
Equipment	130,000 x 10%	13,000
Fixtures & Fittings	100,000 x 15%	15,000
Motor Vehicles	80,000 x 20%	16,000	305,500
Profit before interest and tax			44,500
Interest	80,000 x 10%		8,000
Profit before tax			36,500
Corporation tax			6,500
Profit after tax			30,000
Other comprehensive income
Revaluation of property			75,000
Total comprehensive income			105,000

(b) Statement of Equity Changes for the year

	Ordinary shares		Pref Share	Share Prem	Reval Res	General reserve	Retained /accumulated profit	Total
	€					€	€	€
O/Balance		300,000					65,000	365,000
Profit after tax							30,000	30,000
Dividend Ord							(10,000)	(10,000)
Revaluation					75,000			75,000
C/Balance		300,000			75,000		85,000	460,000


(c) Statement of Financial Position as at 31st March
		Accumulated
Non-current Assets	Cost	Deprec.	NBV
	€	€	€
Premises	325,000	0	325,000
Equipment	130,000	88,000	42,000
Fixtures & Fittings	100,000	60,000	40,000
Motor Vehicles	80,000	51,000	29,000
	560,000	199,000	436,000

Current Assets
Inventory		55,000
Accounts receivable	46,000
Less Provision	6,000	40,000
Bank		65,000	160,000
			596,000
Equity and Liabilities
Capital and Reserves
Ordinary Share Capital			300,000
Retained Profit			85,000
Revaluation reserve			75,000
Shareholders Funds			460,000

Non-Current Liabilities
10% Debentures			80,000

Current Liabilities
Cred/accounts payable		32,000
Accruals (4500 + 10,000)		14,500
Corporation tax		6,500
Debenture interest due		3,000
			56,000

			596,000