Jean Marsh owns a small business making and selling children’s toys. The following trial balance was extracted from her books on 31 December 20X9.

You are given the following additional information.

1. Stocks at 31 December 20X9

2. Depreciation for the year is to be charged as follows:

3. At 31 December 20X9 Insurance paid in advance was £150 and Office general expenses unpaid were £75.

4. Lighting and rent are to be apportioned: ⁴/5 Factory, ¹/5 Office Insurance is to be apportioned: ³/4 Factory, ¹/4 Office

5. Jean is the business’s salesperson and her salary and expenses are to be treated as a selling expense. She has sole use of the business’s car.

Questions:

For the year ended 31 December 20X9 prepare

(a) A manufacturing account showing prime cost and factory cost of production.

(b) A trading account.

(c) A profit and loss account, distinguishing between administrative and selling costs.

(d) A balance sheet as at 31 December 20X9.*

Transcribed Image Text:

Capital Drawings Sales Stocks at 1 January 20X9: Raw materials Finished goods Purchases of raw materials Carriage inwards Factory wages Office salaries J Marsh: salary and expenses General expenses: Factory Office Lighting Rent Insurance Advertising Bad debts Discount received Dr £ 2,000 3,400 6,100 18,000 800 18,500 16,900 10,400 1,200 750 2,500 3,750 950 1,400 650 Cr f 15,000 90,000 1,600