Service Firms. 6 th Year Accounting Higher Level Paul Conway

Transcription

1 6 th Year Accounting Higher Level Paul Conway Service Firms No part of this publication may be copied, reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from The Dublin School of Grinds. Ref: 6/acc/h/pc/Accounting 1

2 EASTER REVISION COURSES Looking to maximise your CAO points? Easter is a crucial time for students to vastly improve on the points that they received in their mock exams. To help students take advantage of this valuable time, The Dublin School of Grinds is running intensive, examfocused Easter Revision Courses. Each course runs for five days (90 minutes per day). All courses take place in Stillorgan, Co. Dublin. The focus of these courses is to maximise students CAO points. EASTER REVISION COURSE FEES: 6TH YEAR & 5TH YEAR COURSES PRICE TOTAL SAVINGS 1st Course nd Course rd Course FREE th Course th Course th Course ,025 7th Course ,220 8th Course 895 1,465 9th Course 945 1,710 3RD YEAR COURSES PRICE TOTAL SAVINGS SPECIAL OFFER 1st Course nd Course To avail of this offer, early booking is required as courses were fully booked last year. 3rd Course FREE th Course th Course th Course th Course th Course BUY 2 COURSES GET A 3 RD COURSE FREE What do students get at these courses? minutes of intensive tuition per day for five days, with Ireland s leading teachers. 99 Comprehensive study notes. 99 A focus on simple shortcuts to raise students grades and exploit the critically important marking scheme. 99 Access to a free supervised study room. NOTE: These courses are built on the fact that there are certain predicable trends that reappear over and over again in the State Examinations. DSOG Easter pg A4 FINAL PRINT.indd 2 25% SIBLING DISCOUNT AVAILABLE. Please call to avail of this discount. FREE DAILY BUS SERVICE For full information on our Easter bus service, see 3 pages ahead. Access to food and beverage facilities is also available to students. To book, call us on or book online at 20/02/ :25

3 Timetable An extensive range of course options are available over a two-week period to cater for students timetable needs. Courses are held over the following weeks:»» Monday 10th Friday 14th April 2017»» Monday 17th Friday 21st April 2017 All Easter Revision Courses take place in The Talbot Hotel, Stillorgan (formerly known as The Stillorgan Park Hotel). 6th Year Easter Revision Courses SUBJECT LEVEL DATES TIME Accounting H Monday 10th - Friday 14th April 12:00pm - 1:30pm Agricultural Science H Monday 10th - Friday 14th April 10:00am - 11:30am Applied Maths H Monday 10th - Friday 14th April 8:00am - 9:30am Art History H Monday 10th - Friday 14th April 2:00pm - 3:30pm Biology Course A* H Monday 10th - Friday 14th April 8:00am - 9:30am Biology Course A* H Monday 17th - Friday 21st April 10:00am - 11:30am Biology Course B* H Monday 10th - Friday 14th April 10:00am - 11:30am Biology Course B* H Monday 17th - Friday 21st April 8:00am - 9:30am Business H Monday 10th - Friday 14th April 12:00pm - 1:30pm Business H Monday 17th - Friday 21st April 8:00am - 9:30am Chemistry Course A* H Monday 17th - Friday 21st April 8:00am - 9:30am Chemistry Course B* H Monday 17th - Friday 21st April 10:00am - 11:30am Classical Studies H Monday 10th - Friday 14th April 2:00pm - 3:30pm Economics H Monday 10th - Friday 14th April 8:00am - 9:30am Economics H Monday 17th - Friday 21st April 10:00am - 11:30am English Paper 1* H Monday 17th - Friday 21st April 8:00am - 9:30am English Paper 2* H Monday 10th - Friday 14th April 8:00am - 9:30am English Paper 2* H Monday 17th - Friday 21st April 10:00am - 11:30am French H Monday 10th - Friday 14th April 10:00am - 11:30am French H Monday 17th - Friday 21st April 8:00am - 9:30am Geography H Monday 10th - Friday 14th April 8:00am - 9:30am Geography H Monday 10th - Friday 14th April 2:00pm - 3:30pm German H Monday 17th - Friday 21st April 12:00pm - 1:30pm History (Europe)* H Monday 17th - Friday 21st April 2:00pm - 3:30pm History (Ireland)* H Monday 17th - Friday 21st April 12:00pm - 1:30pm Home Economics H Monday 10th - Friday 14th April 12:00pm - 1:30pm Irish H Monday 10th - Friday 14th April 10:00am - 11:30am Irish H Monday 17th - Friday 21st April 12:00pm - 1:30pm Maths Paper 1* H Monday 10th - Friday 14th April 8:00am - 9:30am Maths Paper 1* H Monday 10th - Friday 14th April 12:00pm - 1:30pm Maths Paper 1* H Monday 17th - Friday 21st April 8:00am - 9:30am Maths Paper 2* H Monday 10th - Friday 14th April 10:00am - 11:30am Maths Paper 2* H Monday 17th - Friday 21st April 10:00am - 11:30am Maths Paper 2* H Monday 17th - Friday 21st April 12:00pm - 1:30pm Maths O Monday 10th - Friday 14th April 10:00am - 11:30am Maths O Monday 17th - Friday 21st April 12:00pm - 1:30pm Physics H Monday 17th - Friday 21st April 10:00am - 11:30am Spanish H Monday 10th - Friday 14th April 12:00pm - 1:30pm Spanish H Monday 17th - Friday 21st April 10:00am - 11:30am Note: 5th Year students are welcome to attend any of the 6th Year courses above. * Due to large course content, these subjects have been divided into two courses. For a full list of topics covered in these courses, please see 3 pages ahead. To book, call us on or book online at 5th Year Easter Revision Courses SUBJECT LEVEL DATES TIME English H Monday 10th - Friday 14th April 12:00pm - 1:30pm Maths H Monday 10th - Friday 14th April 10:00am - 11:30am Note: 4th Year students are welcome to attend any of the 5th Year courses listed above. 3rd Year Easter Revision Courses SUBJECT LEVEL DATES TIME Business H Monday 17th - Friday 21st April 2:00pm - 3:30pm Studies English H Monday 10th - Friday 14th April 10:00am - 11:30am English H Monday 17th - Friday 21st April 12:00pm - 1:30pm French H Monday 17th - Friday 21st April 12:00pm - 1:30pm Geography H Monday 17th - Friday 21st April 8:00am - 9:30am German H Monday 17th - Friday 21st April 2:00pm - 3:30pm History H Monday 10th - Friday 14th April 8:00am - 9:30am Irish H Monday 10th - Friday 14th April 12:00pm - 1:30pm Maths H Monday 10th - Friday 14th April 8:00am - 9:30am Maths H Monday 17th - Friday 21st April 10:00am - 11:30am Maths O Monday 10th - Friday 14th April 2:00pm - 3:30pm Science H Monday 10th - Friday 14th April 12:00pm - 1:30pm Science H Monday 17th - Friday 21st April 8:00am - 9:30am Spanish H Monday 10th - Friday 14th April 2:00pm - 3:30pm Note: 2nd Year students are welcome to attend any of the 3rd Year courses above. 6th Year Oral Preparation Courses With the Oral marking component worth up to 40%, it is of paramount importance that students are fully prepared for these examinations. These courses will show students how to lead the Examiner towards topics they are prepared for. This will equip students with the information they need to maximise their performance in the State Examinations. FEES: 140 VENUE: The Talbot Hotel, Stillorgan (formerly The Stillorgan Park Hotel) SUBJECT LEVEL DATES TIME French H Sunday 12th March 9:00am - 1:00pm German H Saturday 11th March 9:00am - 1:00pm Irish H Sunday 19th March 9:00am - 1:00pm Spanish H Saturday 11th March 2:00pm - 6:00pm BUY 2 COURSES & GET A 3 RD COURSE FREE!

4 Service Firms Example question - LC 2014 Step 1 Calculate company reserves (opening assets minus liabilities) Begin with all items listed at the top of the question Use Issued capital ONLY, not authorised capital Enter cost and depreciation of Fixed Assets separately (helps later) Extra items to find (not listed at top of page) will include: o Investments (may not be given) o Opening bank figure o Loan and Loan Interest Due Step 2 Shop Profit & Loss a/c Gross profit calculated as normal (using Sales, Purchases Opening and Closing Stock) Extra shop expenses will be given in adjustments (taken away from Gross Profit) o Remember to take those figures away from expenses later Step 3 All necessary Income and Expense figures to be corrected Easiest way is to go in order through the Receipts + Payments a/c rather than going through the adjustments (run through the adjustments at the end to ensure you don t miss anything) Incomes/Expenses will require a T a/c if they have any of the following: o Opening balance o Closing balance o Any other correction listed in the adjustments (no drawings in Service) 2

5 NB: It is CRUCIAL for a number of questions on the course that you understand the basic double entry Accounting rules regarding Assets, Liabilities, Incomes and Expenses!!! Recent service questions have included adjustments regarding Disposal and Revaluation and we should expect that this will continue (so you need to know them regardless of if you ever intend to do 60m questions on Depreciation or Revaluation or Question 1 which usually included a Disposal adjustment) Step 4 Complete Profit + Loss a/c and Balance Sheet as normal Remember you must add Reserves to your Net Profit at the end of your P+L a/c, unlike every other question when it goes in the Balance Sheet Theory Service Firms (as well as Club a/c) always ask theory questions related to the actual question you have done rather than general theory. Answers should always include specific figures taken from the question (eg: large repayments they no longer have like the Loan or purchase of fixed assets, the closing Bank balance) In the 2014 question, a proposed increase in fees would have been unnecessary because: Their fees are already over 300,000, which would easily wipe out the overdraft in 1 year They paid out 295,000 on fixed assets, which are a once off expense They paid 56,000 in loan repayments, which will no longer be a factor They also made a profit of over 150,000, which would also be enough to wipe out the overdraft in a year The 15% increase would only cover approx 1/3 of the overdraft 3

6 Service Firm 2014 The following were included in the assets and liabilities of the Serenity Gym and Health Centre Ltd, on 01/01/2013: Buildings and Grounds 620,000; Equipment 70,000; Vehicles at cost 90,000; Stock in shop 3,400; Stock of heating oil 1,900; Creditors for supplies to Gym and Health Centre 1,600; 5% Investments 40,000; Contract cleaning prepaid 400; Clients deposits paid in advance 6,000, Authorised Capital 600,000, Issued Capital 450,000. All fixed assets have 3 years accumulated depreciation on 01/01/2013. The following is a Receipts and Payments Account for the year ended 31/12/2013: Receipts and Payments Account of Serenity Gym and Health Centre Ltd for year ended 31/12/2013 Balance at Bank 1/1/2013 6,000 Laundry 2,500 Clients Fees 330,500 Telephone 1,600 Investment Income 1,200 Wages & Salaries 85,400 Shop Receipts 45,000 Repayment of,000 loan On 1/4/2013 with 15 months interest 56,000 Balance 31/12/ ,000 Equipment 15,000 New Extension 230,000 New Vehicle 50,000 Contract Cleaning 3,600 Light and Heat 3,400 Insurance 6,800 Purchases Shop 28,000 Purchases Supplies 35, , ,700 The following information and instructions are to be taken into account: (i) Closing stock at 31/12/2013: Shop 1,400, Heating oil 600. (ii) Cleaning is done, under contract, payable monthly in advance and includes a payment of 0 for January (iii) Clients fees include 6,500 for Fees due from Clients at 31/12/2013 were 800. (iv) Wages and salaries include 22,000 per annum paid to the secretary, who also runs the shop. It is estimated that 40% of this salary and 400 of the light and heat, 800 of the insurance and 0 of the telephone is attributable to the shop. (v) Creditors for supplies to the Gym & Health Centre at 31/12/2013 were 2,500. (vi) Electricity due on 31/12/2013 was

7 (vii) (viii) Depreciation to be provided as follows: Buildings 2% of cost for the full year. Equipment 10% of cost for the full year. Vehicles 20% of cost per annum from date of purchase to date of sale. On 01/07/2013 a vehicle which cost 40,000 on 01/01/2010 was traded in against a new vehicle which cost 59,000. An allowance of 9,000 was given on the old vehicle. On 31/12/2013 the Serenity Gym and Health Centre Ltd decided to revalue buildings at 900,000 Required: (a) Calculate the company s reserves (profit and loss balance) on 01/01/2013. (18) (b) Calculate the profit/loss from the shop for the year ended 31/12/2013. (10) (c) Prepare a Profit and Loss Account for the year ended 31/12/2013. (36) (d) Prepare a Balance Sheet on 31/12/2013. (30) (e) The owners of the Serenity Gym and Health Centre Ltd have proposed a 15% increase in clients fees to help clear the bank overdraft. What arguments would you make against this proposal? (6) (100 marks) 5

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