Roy owns and manages a small manufacturing business. The following balances have been extracted from her...
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Roy owns and manages a small manufacturing business. The following balances have been extracted from her books of account as at 31 January 2021: Sh Sh Capital at 1 February 2020 304,020 Accounts payable 82,000 Bank and cash balance 49,600 Accounts receivable 947,300 Drawings 71,000 Administration expenses 156,360 Advertising expenses 16,200 Direct wages 69,000 Factory indirect wages 30,000 Factory power 40,400 Furniture and fittings (all offices) 36,400 Heat and light 21,000 Plant and equipment 107,800 Motor vehicle (used by salesmen) 164,000 Plant hire 6,500 Provision for bad debts 3,700 Provision for depreciation I February 2020 Furniture and fittings Plant and equipment Motor vehicle Raw material purchases Rent and rates Provision for unrealised profits (1 February 2020) Sales Bank charges Inventories at cost, 1 February 2020 Raw materials Work in progress Finished goods 9,660 16,400 27,500 346,000 21,000 15,900 1,669,740 4,360 9,400 18,700 13,900 2,128,920 2,128,920 The following additional information is provided: (i) Accruals at 31 January 2021 were: Factory power Sh. 1,200; Rent and rates Sh. 4,100 (ii) Inventories at 31 January 2021, were valued at cost as follows: Raw materials Work-in-progress Finished goods Shs 11,200 at cost 32,100 at cost 17,250 at transfer price (iii)Transfers are made from the manufacturing account at cost plus 15 %. 3:1 and 1:1 (iv)Depreciation is to be charged on plant and equipment, motor vehicle, furniture and fittings at the rates of 10%, 12% and 105% per annum respectively on cost. (v)Expenditure on heat and light, and rent and rates is to be apportioned between the factory and office in the ratio of 3 to 1 and 1 to 1 respectively. (vi)The provision for bad debts is to be made equal to 4% of accounts receivable at 31 October 2021. Required to prepare: (a)Manufacturing account, for the year ended 31 January 2021 (b) Income statement for the year ended 31 January 2021 (c) Statement of financial position as at 31 January 2021 (6 Marks) (7 Marks) (7 Marks) discount allowed. book Roy owns and manages a small manufacturing business. The following balances have been extracted from her books of account as at 31 January 2021: Sh Sh Capital at 1 February 2020 304,020 Accounts payable 82,000 Bank and cash balance 49,600 Accounts receivable 947,300 Drawings 71,000 Administration expenses 156,360 Advertising expenses 16,200 Direct wages 69,000 Factory indirect wages 30,000 Factory power 40,400 Furniture and fittings (all offices) 36,400 Heat and light 21,000 Plant and equipment 107,800 Motor vehicle (used by salesmen) 164,000 Plant hire 6,500 Provision for bad debts 3,700 Provision for depreciation I February 2020 Furniture and fittings Plant and equipment Motor vehicle Raw material purchases Rent and rates Provision for unrealised profits (1 February 2020) Sales Bank charges Inventories at cost, 1 February 2020 Raw materials Work in progress Finished goods 9,660 16,400 27,500 346,000 21,000 15,900 1,669,740 4,360 9,400 18,700 13,900 2,128,920 2,128,920 The following additional information is provided: (i) Accruals at 31 January 2021 were: Factory power Sh. 1,200; Rent and rates Sh. 4,100 (ii) Inventories at 31 January 2021, were valued at cost as follows: Raw materials Work-in-progress Finished goods Shs 11,200 at cost 32,100 at cost 17,250 at transfer price (iii)Transfers are made from the manufacturing account at cost plus 15 %. 3:1 and 1:1 (iv)Depreciation is to be charged on plant and equipment, motor vehicle, furniture and fittings at the rates of 10%, 12% and 105% per annum respectively on cost. (v)Expenditure on heat and light, and rent and rates is to be apportioned between the factory and office in the ratio of 3 to 1 and 1 to 1 respectively. (vi)The provision for bad debts is to be made equal to 4% of accounts receivable at 31 October 2021. Required to prepare: (a)Manufacturing account, for the year ended 31 January 2021 (b) Income statement for the year ended 31 January 2021 (c) Statement of financial position as at 31 January 2021 (6 Marks) (7 Marks) (7 Marks) discount allowed. book
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
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