Handshake owns and manages a small manufacturing business in Narok town. The following balances have been...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Handshake owns and manages a small manufacturing business in Narok town. The following balances have been extracted from his books of account at 31 December 2018: Dr Cr Sh. Sh. Capital 1,711,200 Creditors 860,000 Bank and cash balance 54,000 Debtors 920,000 Drawings 600,000 Administration expenses 1,503,600 Advertising expenses 120,000 Factory direct wages 600,000 Factory indirect wages 240,000 Factory power 360,000 Furniture and fittings (all offices) 184,000 Heat and light 160,000 Plant and equipment 2,768,000 Motor vehicle (used by salesmen) 1,440,000 Plant hire 40,000 Provision for bad debts 32,000 Provision for depreciation: Furniture and fittings Plant and equipment 92,000 1,384,000 Motor vehicle 240,000 Raw material purchases 2,280,000 Rent rates 200,000 Sales 8,294,400 Selling and distribution expenses 664,000 Inventories at cost: - Raw materials 80,000 - Work in progress 160,000 - Finished goods 240,000 12,613,600 12,613,600 Additional information: 1. Accruals at 31 Dec. 2018 were: Factory power Rent and rates Sh.1, 6000 Sh. 4, 0000 2. There was prepayment of Sh. 8,000 for salesmen's motor vehicle insurance. 3. Inventories at 31 December 2018, were valued at cost as follows: Raw materials Sh. 152,000 Work in progress - Sh. 304,000 Sh. 456,000 Finished goods- 4. Depreciation is to be charged on plant and equipment, motor vehicle, furniture and fittings at the rates of 20%, 25% and 10% per annum respectively on cost. 5. Expenditure on heat and light, and rent and rates is to be apportioned between the factory and office in the ratio of 9 to 1 and 3 to 2 respectively. 6. Provision for doubtful debts is to be made equal to 5% of outstanding debtors at 31 December 2018. Required: a) Prepare Handshake's manufacturing, trading and profit and loss account for the year ended 31 December 2018. b) Balance sheet as at 31st December 2018. (8 marks) (7marks) Handshake owns and manages a small manufacturing business in Narok town. The following balances have been extracted from his books of account at 31 December 2018: Dr Cr Sh. Sh. Capital 1,711,200 Creditors 860,000 Bank and cash balance 54,000 Debtors 920,000 Drawings 600,000 Administration expenses 1,503,600 Advertising expenses 120,000 Factory direct wages 600,000 Factory indirect wages 240,000 Factory power 360,000 Furniture and fittings (all offices) 184,000 Heat and light 160,000 Plant and equipment 2,768,000 Motor vehicle (used by salesmen) 1,440,000 Plant hire 40,000 Provision for bad debts 32,000 Provision for depreciation: Furniture and fittings Plant and equipment 92,000 1,384,000 Motor vehicle 240,000 Raw material purchases 2,280,000 Rent rates 200,000 Sales 8,294,400 Selling and distribution expenses 664,000 Inventories at cost: - Raw materials 80,000 - Work in progress 160,000 - Finished goods 240,000 12,613,600 12,613,600 Additional information: 1. Accruals at 31 Dec. 2018 were: Factory power Rent and rates Sh.1, 6000 Sh. 4, 0000 2. There was prepayment of Sh. 8,000 for salesmen's motor vehicle insurance. 3. Inventories at 31 December 2018, were valued at cost as follows: Raw materials Sh. 152,000 Work in progress - Sh. 304,000 Sh. 456,000 Finished goods- 4. Depreciation is to be charged on plant and equipment, motor vehicle, furniture and fittings at the rates of 20%, 25% and 10% per annum respectively on cost. 5. Expenditure on heat and light, and rent and rates is to be apportioned between the factory and office in the ratio of 9 to 1 and 3 to 2 respectively. 6. Provision for doubtful debts is to be made equal to 5% of outstanding debtors at 31 December 2018. Required: a) Prepare Handshake's manufacturing, trading and profit and loss account for the year ended 31 December 2018. b) Balance sheet as at 31st December 2018. (8 marks) (7marks)
Expert Answer:
Answer rating: 100% (QA)
a Manufacturing Trading and Profit and Loss Account for the year ended 31 December 2018 Manufacturing Account Raw Material Consumed 2280000 Work in Pr... View the full answer
Related Book For
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
Posted Date:
Students also viewed these human resource management questions
-
What are the institutional features that appear to have delayed the implementation of IFRS in India?
-
Four different cycloalkenes will all yield methylcyclopentane when subjected to catalytic hydrogenation. What are their structures? Show the reactions.
-
The homogeneous circular cylinder of mass m and radius R carries a slender rod of mass m/2 attached to it as shown. If the cylinder rolls on the surface without slipping with a velocity v O of its...
-
Show that the variance of the $i^{\text {th }}$ run in a $2^{3}$ design with two replications is \[\frac{\left(y_{i 1}-y_{i 2} ight)^{2}}{2}\] where $y_{i j}$ is $j^{\text {th }}$ observation in...
-
1. What are the three most important trends cited in this case? Explain your answer. 2. To date, what are the three most accurate predictions cited in the case? Explain your answer. 3. To date, what...
-
Required information Exercise 13-10 (Algo) Small stock dividend LO P2 (The following information applies to the questions displayed below.] The stockholders' equity section of TVX Company on February...
-
matrix. Find the X-Y-Z fixed angles of rotation (y. B. a) for the following rotation AR= = [0.6124 0.6124 -0.5 -0.0474 0.6597 0.75 0.7891 -0.4356 0.433
-
What is the difference between a culture that is tight and one that is loose?
-
When a manager is asked to justify a new budget proposal on the basis of projected activities rather than past practices, this is an example of __________budgeting. (a) zero-based (b) variable (c)...
-
How do regional economic alliances affect the global economy?
-
The World Trade Organization would most likely become involved in disputes between countries over ____________. (a) exchange rates (b) ethnocentrism (c) nationalization (d) tariff s
-
The most appropriate first question to ask in strategic planning is ____________. (a) Where do we want to be in the future? (b) How well are we currently doing? (c) How can we get where we want to...
-
Identify the retail store used for the final visual merchandising plan. Explain how the visual merchandising plan will benefit the retailer chosen. Use specific terms and discuss why this retailer...
-
From the choice of simple moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? please write it in word...
-
Kiev Co. purchases a machine on 1 January 20X0 for 240,000. Depreciation is charged at 10 per cent on cost. On 30 June 20X4, the machine is sold for 120,000 and the proceeds used to buy a new vehicle...
-
The trial balance of Shanghai Co. on 31 March 20X7 is given below. The following information is also relevant: 1. Closing inventory is valued at 133m. 2. Electricity accrued is estimated to be 5m. 3....
-
The trial balance of Penang Co. on 31 July 20X7 was as follows. The following additional information is available: 1. Inventory at 31 July 20X6 is valued at 1,361,000. 2. Depreciation for the year is...
Study smarter with the SolutionInn App