Essay About Motor Vehicles And Book Value

Accounting
Elizabeth O’NeillBL5Accounting Manual and computerised 5N1348Additional Information:Closing stock for the 31/12/2015 = €147000.Provide for taxation = €102000 this is an expense and a liability and is placed in the debit account we then credit the taxation due which on the balance sheet.Advertising for the year ended 30/04/2016 = €45000 (May 15 – April 16)                            prepaying €45000 ÷ 12 x 4 (January – April) = €15000.Rent receivable due = €900 we credit the rent receivable with €900 and debit the other debtors.Dividends are declared of 10% taking profit made for the year multiplying by 10% The provision for bad debts to be adjusted to 5% of debtors                                                    €135000 x 5% = 6750 – 4500=2250Interest due on term loan at the rate of 10% per annum = €300000 x 10% = €30000 x 3 ÷ 12 = €7500Depreciation:Motor Vehicles: €228000 – €48000 = €180000 x 20% = €36000. I calculated the book value when I lessened motor vehicles from acc depr on motor vehicles and received my book value that I multiplied by 20%.Equipment: €84000 x 10% = 8400 10% of cost.Buildings: 2% of cost = €1850100 x 2% = €37002Ratios:Return on capital employmentNet profit before interest x tax * 100 Capital Employed                              1            = 551442 x 100 = 30.3   1814448    1Acid test RatioCurrent assets less closing stock Current liabilities                               = 295650 – 147000 = 0.51             285900Rate of stock turnoverCost of sales ÷ average stock (1/2 x opening + closing stock)  = 1290666 ÷ (0.5 x 138000 + 147000) = 3.5                  142500 Earnings per shareProfit after tax less preference dividend