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PROBLEMS Q1. Manufacturing sole trader. Kimeu retired from Jambo Plastics in February 2009 and started his own business on 30 April 2009. His enterprise, known as Kimeu Plastics manufactures one product which it sells to the wholesale trade. The following trial balance was extracted from the books of the enterprise as at 30 April 2010 Sh. Sh. 350.000 1,800,000 3,500,000 3,950,000 18,000,000 3,000,000 1,400,000 655,000 6000000 Inventories as at 1 May 2009: Raw materials, at cost Work-in-Progress, at factory cost Finished goods Raw material purchased Sales Manufacturing wages Factory rent and rates Factory light, heat and power Plant at cost Plant depreciation at 1 May 2009 Work manager's salary Plant repairs Administrative overheads Factory lease at cost (20 years duration) Amortization at 1 may 2009 Capital Account receivable Bank balance Account payable Carriage inwards 2,800,000 245,000 400,000 1,800,000 4,000,000 1,200,000 7,500,000 3,050,000 1,600,000 2,450,000 200,000 31,950,000 31,950,000 The following additional information is available: 1. Plant depreciation is to be provided at 10% on the cost of plant owned at the year end. 2. Raw materials costing Sh.500000, work in progress valued at Sh.100000 and finished goods worth Sh.200000 were in inventory on 30 April 2001. Required: a) Manufacturing account and income statement for the year ended 30 April 2010 b) Statement of financial position as at 30 April 2010