Ashley Ltd is a manufacturing firm. The bookkeeper supplies you with the following financial information for the year ended 31 March 20X3.

Factory buildings ..........................................100,000

Provision for depreciation on buildings .................. 15,000

Plant and equipment ...................................... 500,000

Provision for depreciation on plant ..................... 150,000

Motor vehicles (administration) ........................... 25,000

Provision for depreciation on motor vehicles............ 9,000

Trade receivable ........................................... 156,000

Bank ........................................................... 8,000

Cash ............................................................. 700

Trade payables ............................................. 56,000

Other selling and distribution expenses ................. 33,600

Other administration expenses ........................... 24,000

Raw materials purchases ................................ 500,000

Factory rates ................................................ 23,000

Direct labour ............................................. 200,000

Factory heat and light .................................... 38,000

Direct expenses ........................................... 161,800

Other factory overheads .................................. 29,000

Indirect factory labour .................................... 32,000

Inventories at 1 April 20X2

Raw materials ........................................... 130.000

Finished goads ........................................... 96.000

Work in progress ....................................... 105,000

Factory maintenance casts ............................ 176.000

Machine repairs ......................................... 23.000

Sales of finished goods in the year ............... 1,903.400

Sales representatives' salaries........................... 30,000

Commission to sales representatives ................. 10,000

Bad debts .................................................. 4.000

Bookkeeper's salary............................... 15,000

Postage .............................................. 1,000

Other information

1. On 1 April 20X2 the company arranged a long-term loan of £500,000 at a fixed rate of interest of 10 per cent per annum. The loan was used to buy a building worth £300,000, plant worth £150,000 (including an installation charge of £16,000) and three sales representatives' vehicles for £50,000. No provision had been made for the payment of the interest.

2. During the year an obsolete machine costing £60,000, but written down to £44,000, was sold as scrap for £10,000.

3. The company depreciates its assets as follows:

Buildings .............................. 5 per cent per annum

Plant and equipment ................ 20 per cent reducing balance

Motor vehicles (administration) ... 25 per cent reducing balance

Motor vehicles (sales representatives) over four years using the sum of digits method.

A full years depreciation is provided for all assets in ownership at the end of the year.

4. The inventories held at the end of the year were:

.................................................................................. £

Raw materials per inventory sheet ................ 102,800

Finished goods .............................................. 107,600

Work in progress ............................................ 82,000

Required

Prepare the following:

a. The manufacturing account and the statement of profit and loss for the year ended 31 March 20X3.

b. The statement of financial position as at 31 March 20X3?