During 2017 the following transactions occurred: 1) Mars Limited purchased eight cars for their sales representatives for a total of €120,000. The company also bought some additional fixtures and fittings for €36,000. Both were paid in cash. 2) Mars Limited purchased inventory on credit at a cost of €5.6million. 3) Sales were made on credit amounting to €8 million. There was no cash sales. 4) Mars Limited made payment to its creditors amounting to €5.8 million during the year. 5) Payments from the customers amounting to €7.6 million was received during the year. 6) Mars Limited issued and paid dividends amounting to €120,000 during the year. 7) All inventories were used to generate profit. There is no inventory left at the end of accounting period. Required: a) Draw up the ledger (T-accounts) for Mars Limited for the year ended 31st December 2017, posting all transactions. Make sure you open and balance off all accounts correctly.
During 2017 the following transactions occurred: 1) Mars Limited purchased eight cars for their sales representatives for a total of €120,000. The company also bought some additional fixtures and fittings for €36,000. Both were paid in cash. 2) Mars Limited purchased inventory on credit at a cost of €5.6million. 3) Sales were made on credit amounting to €8 million. There was no cash sales. 4) Mars Limited made payment to its creditors amounting to €5.8 million during the year. 5) Payments from the customers amounting to €7.6 million was received during the year. 6) Mars Limited issued and paid dividends amounting to €120,000 during the year. 7) All inventories were used to generate profit. There is no inventory left at the end of accounting period. Required: a) Draw up the ledger (T-accounts) for Mars Limited for the year ended 31st December 2017, posting all transactions. Make sure you open and balance off all accounts correctly.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:During 2017 the following transactions occurred:
1)
Mars Limited purchased eight cars for their sales representatives for a total of €120,000. The
company also bought some additional fixtures and fittings for €36,000. Both were paid in
cash.
2)
Mars Limited purchased inventory on credit at a cost of €5.6million.
3) Sales were made on credit amounting to €8 million. There was no cash sales.
4)
Mars Limited made payment to its creditors amounting to €5.8 million during the year.
5) Payments from the customers amounting to €7.6 million was received during the year.
6) Mars Limited issued and paid dividends amounting to €120,000 during the year.
7) All inventories were used to generate profit. There is no inventory left at the end of accounting
period.
Required:
a) Draw up the ledger (T-accounts) for Mars Limited for the year ended 31st December 2017,
posting all transactions. Make sure you open and balance off all accounts correctly.
Transcribed Image Text:Tutorial Question 1
Mars limited
Mars Limited's Statement of Financial Position as at 1st January 2017 is as follows:
Mars Limited Statement of Financial Position as at 1st January 2017
ASSETS
Non-current assets
Premises
Fixtures and ngs
Vehicle
Distribution costs
Employee costs
Occupancy costs
Total non-current assets
Current assets
Inventories
Trade receivables
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
Retained earnings
Total equity
Current liabilities
Trade payables
Total current liabilities
Total equity and liabilities
NBV
€'000
Repairs and maintenance expenses
Utility expenses
Other administrative expenses
1,280
144
40
1,464
80
360
820
1,260
2,724
1,280
1,044
2,324
There are the following payments listed in the bank statement that took place during 2017:
400
400
2,724
€'000
240
720
16
8
96
24
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Draw out a
Thank you .
Solution
by Bartleby ExpertFollow-up Question
what is the purporse of opening the cost of sales A/C yet a double entry had been made upon their purchase in the inventory A/C and cash and cash eqivalents A/C ?
Thank you .
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education