Daly Signed A Property Agreement With A Landlord In 2012 Renting A Building At € 57,000 Per Annum
Question 1
Henry Martin started a business in September 2016. You are required to enter the following transaction in the necessary ledger “T-accounts”. .
This Question Is To Be Completed Using T Accounts
YOU DO NOT HAVE TO BALANCE OFF THE ACCOUNTS
JUST RECORD THE TRANSACTIONS ABOVE
Total 35 Marks
Question 2
- Daly signed a property agreement with a landlord in 2012 renting a building at € 57,000 per annum. He utilises the ground floor himself as retail premises. He sub-lets the first floor to E. Reilly for € 19,000 per annum and the second floor to M. Flaherty for € 9,000 per annum.
| The following was the position on 1st January 2015 | |
| € | |
| Rent paid in advance by K. Daly to landlord | 14,500 |
| Rent owed to K. Daly by E. Reilly | 4,750 |
| Rent paid in advance to K. Daly by M. Flaherty | 2,500 |
During the year ended 31st December 2015, the following transactions took place:
| € | |
| Rent paid by K. Daly to landlord | 28,500 |
| Rent received by K. Daly from E. Reilly | 23,000 |
| Rent received by K. Daly from M. Flaherty | 5,000 |
- Daly also pays rates on these premises. Rates are payable in advance on 1st April each year. At 1st January 2015 K. Daly had paid rates in advance of € 6,000.
- Daly paid € 24,000 for rates on 6th April 2015. No other payments were made in the year ended 31st
December 2015
- Daly has been informed by the rates office that the rates on the premises will be € 36,000 per annum from 1st April 2015 due to improvements made to the premises.
Requirement
(a) Show in T-account format the entries in the rent payable account, rates payable account and the rent receivable account for the year ended 31st December 2015, you must balance off the accounts.
25 Marks
(b) Show the relevant entries in the Income Statement and the Statement of Financial Position of K. Daly for the year ended 31st December 2015.
10 Marks
Total 35 Marks
Question 3
As accounts assistant for O’Connor Limited your main task is to enter transactions into the company’s cash book, check the entries against the bank statement and prepare a monthly bank reconciliation statement.
The bank account and bank statement for October 2016 are set out below.
You are to:
- Make the entries necessary to update the bank account and balance off the account.
15 Marks
- Start with the balance as per the bank account and prepare a bank reconciliation statement
15 Marks
Total 30 Mark
