Makers and Co. is a partnership with a small factory on the outskirts of London. They decide
Question:
The following items appear in the trial balance of the firm, as at 31 December 20X2:
In the course of your examination of the books you ascertain that:
1. Building materials used in building the extension and costing £1,800 had been charged to the purchases account;
2. Wages paid to men engaged in building the extension amounted to £1,500 and had been charged to the wages account;
3. The hire charge was in respect of machinery used exclusively in the construction of the extension;
4. The legal charges, apart from £50 relating to debt collecting, were incurred in the purchase of the land.
It is decided that depreciation on plant and machinery is to be provided at per cent on the closing book value.
Required
a. Write up the following ledger accounts: Factory extensions, freehold premises, plant and machinery, and provision for depreciation of plant and machinery.
b. Show the particulars that should appear on the firm's statement of financial position at 31 December 20X2.
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
Step by Step Answer:
Introduction To Financial Accounting
ISBN: 978-0077138448
7th edition
Authors: Anne Marie Ward, Andrew Thomas