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)
Lets start by preparing the manufacturing trading and profit and loss account for Handshakes business for the year ended 31 December 2018 After that w... 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
-
1. Holmes uses the analogy of yelling fire in a crowded theater to illustrate the limits of our constitutional right to free speech. Is this a good analogy to the facts of the Schenck case? What's...
-
a. Prove that 3n +3 = (n).
-
A newspaper company carried out a study to determine the portion of the newspaper that is first read and if this is related to the level of education of the reader. The data collected are shown in...
-
What are the institutional features that appear to have delayed the implementation of IFRS in India?
-
(a) Three different alkenes yield 2-methylbutane when they are hydrogenated in the presence of a metal catalyst. Give their structural formulas and write equations for the reactions involved. (b) One...
-
Long-Term Financing As was mentioned in the chapter, new equity issues are generally only a small portion of all new issues. At the same time, companies continue to issue new debt. Why do companies...
-
Compare common and contract carriage. How do they differ from private carriage? Which will give the highest level of service? LO.1
-
Prepare the general journal entries needed to record the following transactions and events in the general ledger accounts of the Valdes Helping Hand Institute, a nongovernment VHWO: 1. Contributions...
-
"Going public" is the most common way for a small business to acquire growth capital. True False Question 18 (1 point) The biggest trading partner (volume of trade) of Canada is the U.S. True False...
-
Analyze how the law relating to the defense of consent operates in relation to the assaults with particular reference to the case of R v Brown [1993] 2 WLR 556; and critically evaluate whether the...
-
POTI ENTERPRISES LTD. STATEMENT OF INCOME FOR THE YEAR ENDED DECEMBER 31 (current year) SALES $600,000 COST OF SALES: $50,000 OPENING INVENTORY 250,000 PURCHASES 300,000 CLOSING INVENTORY 60,000...
-
10. Describe a qualified defined contribution plan for the self-employed and discuss the advantages and disadvantages in adopting this type of plan. 11. Describe a SEP IRA and discuss the advantages...
-
7.) In 1999, the average percentage of women who received prenatal care per country is 80.1%. Table #7.3.9 contains the percentage of woman receiving prenatal care in 2009 for a sample of countries...
-
Describe A demographic profile of the population and community that will be served through the reinvented Human Service program. The description must include all eligibility requirements (i.e.,...
-
You work for a major financial institution. Your branch handles customer calls from a wide variety of individuals. Recently, you've noticed an increase in calls from individuals from African...
-
3. The following information are given for three investment opportunities (A,B,C) which require equal amount of investments at time zero but with different annual net cash inflows on years 1 to 5....
-
The cash records of Holly Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $720. During July, the general ledger account Cash...
-
COMMUNICATION CASE 2 The City of Larissa recently opened a solid waste landfill to serve the areas citizens and businesses. The citys accountant has gone to city officials for guidance as to whether...
-
53. A city starts a public library that has separate incorporation and gets some of its money from the state and some from private donations. Indicate whether each of the following independent state...
-
RESEARCH CASE 1 The City ofAbernethy has three large bridges built in the later part of the 1980s that were not capitalized at the time. The citys accountant is interested in receiving suggestions as...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App