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Service Firm: East Glendalough School Accountancy h.05.4

The document provides financial information for M. Casey, a dentist, including assets and liabilities as of January 1, 2004, and a Receipts and Payments Account for the year ending December 31, 2004. It outlines the necessary calculations for preparing an Income and Expenditure Account and a Balance Sheet, including details on stock, depreciation, and amounts owed. Specific instructions for accounting treatments and adjustments are also included.

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25 views1 page

Service Firm: East Glendalough School Accountancy h.05.4

The document provides financial information for M. Casey, a dentist, including assets and liabilities as of January 1, 2004, and a Receipts and Payments Account for the year ending December 31, 2004. It outlines the necessary calculations for preparing an Income and Expenditure Account and a Balance Sheet, including details on stock, depreciation, and amounts owed. Specific instructions for accounting treatments and adjustments are also included.

Uploaded by

cormacstapleton15
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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East Glendalough School h.05.

4
Accountancy
4. Service Firm

The following were included in the assets and liabilities of M. Casey, a dentist, on 1/1/2004:

Surgery €120,000; Equipment €60,000; Motor Car €24,000; Stock of Dental Materials €5,400; Owed
from Medical Insurance Scheme €5,700; Creditors for Dental Materials €3,200; 5% Investments
€80,000; Fees due from Private Patients €2,100; Capital €219,160.

The following is a Receipts and Payments Account for the year ended 31/12/2004:

Receipts and Payments Account of M. Casey for year ended 31/12/2004

€ €
Jan. 1 Balance at Bank 6,760 Dental Materials 14,000
Receipts from Private Patients 96,000 Telephone and Postage 3,100
Investment Income 3,600 Wages of Receptionist 15,000
Medical Insurance Scheme 23,540 Repayment of €40,000
Sale of Equipment (cost €18,000) 9,000 loan on 1/5/2004 with 3
years interest 43,600
Equipment 22,000
Light and Heat 4,000
Insurance 2,360
Technician’s Fees 13,000
Drawings 18,500
Dec. 31 Balance at Bank 3,340

138,900 138,900

The following information and instructions are to be taken into account:

(i) Stock of Dental Materials on 31/12/2004 was €4,900.

(ii) 70% of the Light and Heat and the Telephone and Postage relate to the dental practice with the
remainder for personal use.

(iii) Depreciate fixed assets on 31/12/2004 as follows:


Equipment 20% of cost.
Surgery 2% of cost.
Motor Car 20% of cost.

Note: Fixed assets are given at cost and depreciation on them has been accumulated for 2
years to 31/12/2003. There is no depreciation on Equipment sold in the year of disposal.

(iv) Amounts due from Medical Insurance Scheme and Private Patients are €4,800 and €1,400
respectively.

(v) Creditors for Dental Materials on 31/12/2004 amounted to €3,500.

You are required to prepare:

(a) An Income and Expenditure Account for the year ended 31/12/2004. (35)
(b) A Balance Sheet as at 31/12/2004. (25)

(60 marks)

M. Galligan
B. Reid 1 of 1 D:\accountancy\05\h\q4.pdf
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