Euzebius Coffie is an eye specialist and surgeon practicing at the Sight and Visions General Eye...

     

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Euzebius Coffie is an eye specialist and surgeon practicing at the Sight and Visions General Eye Clinic, which is located on Brigham Street, Manchester. For the purpose of preparing his accounts for the year ended 31 January 20¹4 the following information is available to you. (1) Balances in his computerised books of account at 1 February 20*3 £ £ Motor Vehicle Cost Depreciation Optical equipment Cost Depreciation Office furniture and equipment: Cost Depreciation Stock of contact lenses, at cost Debtors for fees earned Fees for operations, received in advance Creditor for property costs Accountancy Creditors for medical books Amount due for PAYE and Social Security Cash in hand Cash at bank Capital account - Euzebius 34,900 71,160 17,400 8,230 16,728 116 11,153 159.687 12,500 28,404 10,400 6,760 3,215 875 217 718 96,598 159.687 (2) Summary of bank statements for the year ended 31 January 20 *4 £ £ 11,153 Balance at 1 February 20*3 Total cheques received from patients Cash banked Insurance claim received for damaged equipment (to be offset against equipment repairs) 124,850 6,900 1,104 144.007 Receipts: Fees paid by patients in cash Receptionist/secretary salary (net) for year Payments for PAYE and Social Security Contact lens purchased Fees to Medical Ass. Medical books Property costs Accountancy charges Repairs to equipment New optical equipment bought on 1/08/2013 Medical supplies Car expenses Drawings Balance at 31/01/20*4 Payments: Office stationery, postage and sundries Cheque cashed for patient Cash banked 15,059 3,372 110 6,900 (3) Cash-receipts/payments for the year ended 31 January 20¹4 £ 10,680 9,633 14.928 6,410 1,491 18,335 875 3,084 11,100 1,202 5,332 39,100 17,458 144,007 (4) Fees The patients' fees printout for the Brigham Street practice shows total fees billed for the year of £143,120 of which £2,546 relates to an operation on an overseas visitor who returned home without paying. This fee is not recoverable. In addition to his practice, Euzebius has two part-time hospital consultancy appointments. These fees, which totalled £54.500 for the year under review, are paid gross as they are brought into account as part of the profits of his practice. Euzebius in fact paid this total of £54,500 into his private bank account. (5) Property costs The premises are used by three other medical specialists. Property costs are shared between occupants in proportion to space occupied. Monthly payments on account are made by each specialist into a separate bank account, out of which the costs are paid. A statement of account is (6) (7) (8) (9) prepared at 31 January annually, and balancing payments made in February. For the year under review this statement shows the following. £ Rent, rates and insurance Repairs Heat and light Security services Front Desk Assistant 72.700 5,556 8,706 1,020 474 88,456 Euzebius' agreed share is 20% and his payments on account have been at the rate of £1,260 per month. Receptionist/secretary The lady who works at the practice with this title has a gross salary of £22,300 per annum. Employer's Social Security contributions can be taken as being 12.5% of gross salary. Mrs Coffie Included in Euzebius' drawings of £39,100 is a total of £4,100 paid by him to his wife for her work in maintaining patients' records. Car expenses The total expenses incurred by Euzebius are paid through the practice. It is agreed, however, that only 90% of such expenses, and depreciation. shall be charged against the practice profits. Depreciation Depreciation on all fixed assets is charged at 20% on the cost of assets in use at the year-end, subject to (8) above. (10) Stocks, debtors and creditors at 31 January 20 *4 Stock of contact lenses Debtors for fees Due for property costs Due to the PAYE and Social Security Fees received in advance Outstanding accountancy charges Fees due to medical assistants £ 8,625 to be calculated to be calculated to be calculated 5,402 950 1,930 Requirements (a) Prepare the profit and loss account for the year ended 31 January 20 *4 (b) Produce the balance sheet at 31 January 20¹4 Euzebius Coffie is an eye specialist and surgeon practicing at the Sight and Visions General Eye Clinic, which is located on Brigham Street, Manchester. For the purpose of preparing his accounts for the year ended 31 January 20¹4 the following information is available to you. (1) Balances in his computerised books of account at 1 February 20*3 £ £ Motor Vehicle Cost Depreciation Optical equipment Cost Depreciation Office furniture and equipment: Cost Depreciation Stock of contact lenses, at cost Debtors for fees earned Fees for operations, received in advance Creditor for property costs Accountancy Creditors for medical books Amount due for PAYE and Social Security Cash in hand Cash at bank Capital account - Euzebius 34,900 71,160 17,400 8,230 16,728 116 11,153 159.687 12,500 28,404 10,400 6,760 3,215 875 217 718 96,598 159.687 (2) Summary of bank statements for the year ended 31 January 20 *4 £ £ 11,153 Balance at 1 February 20*3 Total cheques received from patients Cash banked Insurance claim received for damaged equipment (to be offset against equipment repairs) 124,850 6,900 1,104 144.007 Receipts: Fees paid by patients in cash Receptionist/secretary salary (net) for year Payments for PAYE and Social Security Contact lens purchased Fees to Medical Ass. Medical books Property costs Accountancy charges Repairs to equipment New optical equipment bought on 1/08/2013 Medical supplies Car expenses Drawings Balance at 31/01/20*4 Payments: Office stationery, postage and sundries Cheque cashed for patient Cash banked 15,059 3,372 110 6,900 (3) Cash-receipts/payments for the year ended 31 January 20¹4 £ 10,680 9,633 14.928 6,410 1,491 18,335 875 3,084 11,100 1,202 5,332 39,100 17,458 144,007 (4) Fees The patients' fees printout for the Brigham Street practice shows total fees billed for the year of £143,120 of which £2,546 relates to an operation on an overseas visitor who returned home without paying. This fee is not recoverable. In addition to his practice, Euzebius has two part-time hospital consultancy appointments. These fees, which totalled £54.500 for the year under review, are paid gross as they are brought into account as part of the profits of his practice. Euzebius in fact paid this total of £54,500 into his private bank account. (5) Property costs The premises are used by three other medical specialists. Property costs are shared between occupants in proportion to space occupied. Monthly payments on account are made by each specialist into a separate bank account, out of which the costs are paid. A statement of account is (6) (7) (8) (9) prepared at 31 January annually, and balancing payments made in February. For the year under review this statement shows the following. £ Rent, rates and insurance Repairs Heat and light Security services Front Desk Assistant 72.700 5,556 8,706 1,020 474 88,456 Euzebius' agreed share is 20% and his payments on account have been at the rate of £1,260 per month. Receptionist/secretary The lady who works at the practice with this title has a gross salary of £22,300 per annum. Employer's Social Security contributions can be taken as being 12.5% of gross salary. Mrs Coffie Included in Euzebius' drawings of £39,100 is a total of £4,100 paid by him to his wife for her work in maintaining patients' records. Car expenses The total expenses incurred by Euzebius are paid through the practice. It is agreed, however, that only 90% of such expenses, and depreciation. shall be charged against the practice profits. Depreciation Depreciation on all fixed assets is charged at 20% on the cost of assets in use at the year-end, subject to (8) above. (10) Stocks, debtors and creditors at 31 January 20 *4 Stock of contact lenses Debtors for fees Due for property costs Due to the PAYE and Social Security Fees received in advance Outstanding accountancy charges Fees due to medical assistants £ 8,625 to be calculated to be calculated to be calculated 5,402 950 1,930 Requirements (a) Prepare the profit and loss account for the year ended 31 January 20 *4 (b) Produce the balance sheet at 31 January 20¹4

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