Practice exam assignment 1
The following is the statement of financial position of HSHB and Co at the end of its first year
of trading:
Statement of financial position as at 31 December 2014
ASSETS €
Non-current assets
Property, plant and equipement
Delivery van at cost 16000
Depreciation -4000
12000
Current assets
Inventories 69000
Trade receivables 19300
prepaid expenses* 6425
Cash 750
95475
Total assets 107475
EQUITY AND LIABILITIES
Equity
Original 50000
Retained earnings 32715
82715
current liabilities
Trade payables 23500
Accrued expenses** 1260
24760
total equity and liabilities 107475
* The prepaid expenses consisted of rates (€425) and rent (€6000).
** The accrued expenses consisted of wages (€710) and electricity (€550).
During 2015, the following transactions took place:
1. The owners withdrew €30.000 of equity as cash.
2. Premises continued to be rented at an annual rental of €25.000. During the year, rent of
€19.000 was paid to the owner of the premises.
3. Rates on the premises €1.800 were paid for the period 1 April 2015 to 31 March 2016.
The following is the statement of financial position of HSHB and Co at the end of its first year
of trading:
Statement of financial position as at 31 December 2014
ASSETS €
Non-current assets
Property, plant and equipement
Delivery van at cost 16000
Depreciation -4000
12000
Current assets
Inventories 69000
Trade receivables 19300
prepaid expenses* 6425
Cash 750
95475
Total assets 107475
EQUITY AND LIABILITIES
Equity
Original 50000
Retained earnings 32715
82715
current liabilities
Trade payables 23500
Accrued expenses** 1260
24760
total equity and liabilities 107475
* The prepaid expenses consisted of rates (€425) and rent (€6000).
** The accrued expenses consisted of wages (€710) and electricity (€550).
During 2015, the following transactions took place:
1. The owners withdrew €30.000 of equity as cash.
2. Premises continued to be rented at an annual rental of €25.000. During the year, rent of
€19.000 was paid to the owner of the premises.
3. Rates on the premises €1.800 were paid for the period 1 April 2015 to 31 March 2016.
