Ashley Ltd is a manufacturing firm. The bookkeeper supplies you with the following financial information for the year ended 31 March 20X5.

Other information
1. On 1 April 20X4 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:

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

Of the raw materials held in inventories at the year end, £30,000 had suffered fire damage. It was estimated that they could be sold for £5,000.
5. The raw material purchases figure included in the list above includes £100,000 for carriage inwards. A credit note for £3,000, correcting an overcharge on an original invoice for carriage, was received on 31 March 20X5. The figures had not been adjusted for this.
6. Accruals and prepayments at the year end were:

Required
Prepare the following:
a. The manufacturing account and the statement of profit or loss for the year ended 31 March 20X5.
b. The statement of financial position as at 31 March 20X5.

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Factory buildings Provision for depreciation on buildings Plant and equipment Provision for depreciation on plant Motor vehicles (administration) Provision for depreciation on motor vehicles Trade receivables Bank Cash Trade payables Other selling and distribution expenses Other administration expenses Raw material purchases Factory rates Direct labour Factory heat and light Direct expenses Other factory overheads Indirect factory labour Inventories at 1 April 20X4 - Raw materials -Finished goods - Work-in-progress Factory maintenance costs Machine repairs Sales of finished goods in the year Sales representatives' salaries Commission to sales representatives Irrecoverable debts Bookkeeper's salary Postage £ 100,000 15,000 500,000 150,000 25,000 9,000 156,000 8,000 700 56,000 33,600 24,000 500,000 23,000 200,000 38,000 161,800 29,000 32,000 130,000 96,000 105,000 176,000 23,000 1,903,400 30,000 10,000 4,000 15,000 1,000