Additional informátion: Rent, insurance and lighting expenses are to be apportioned between factory, office and distribution as follows: Factory Office Distribution % Rent 70 30 Insurance 60 10 20 30 Lighting 80 2 Allowance for doubtful debts is to be maintained at 5% and bad debts of Sh. 3,500,000 are to be written-off. Inventories as at 31 December 2010 were valued as follows: Sh. Raw materials I inished goods Work in progress 14,000,000 42,000,000 15,500,000 4. Accrued rent and general administrative expenses as at 31 December 2010 amounted to Sh.1.200,000 and Sh1.500,000 respectively. 5. Prepaid insurance as at 31 December 2010 amounted to Sh.360,000 6. A provision for corporation tax amounting to Sh.25,340,000 is to be made, 7. Depreciation is to be provided as follows: Rate per annum 12.5% on reducing balance basis 15% on straight line basis Asset Machinery Computers Ignore depreciation on buildings. 8. The directors propose to pay a dividend of Sh.0.50 per share. Required;- a) Manufacturing, trading and income statement for the year ended 31 December 2010. of financial position as at 31 December 2010.
Additional informátion: Rent, insurance and lighting expenses are to be apportioned between factory, office and distribution as follows: Factory Office Distribution % Rent 70 30 Insurance 60 10 20 30 Lighting 80 2 Allowance for doubtful debts is to be maintained at 5% and bad debts of Sh. 3,500,000 are to be written-off. Inventories as at 31 December 2010 were valued as follows: Sh. Raw materials I inished goods Work in progress 14,000,000 42,000,000 15,500,000 4. Accrued rent and general administrative expenses as at 31 December 2010 amounted to Sh.1.200,000 and Sh1.500,000 respectively. 5. Prepaid insurance as at 31 December 2010 amounted to Sh.360,000 6. A provision for corporation tax amounting to Sh.25,340,000 is to be made, 7. Depreciation is to be provided as follows: Rate per annum 12.5% on reducing balance basis 15% on straight line basis Asset Machinery Computers Ignore depreciation on buildings. 8. The directors propose to pay a dividend of Sh.0.50 per share. Required;- a) Manufacturing, trading and income statement for the year ended 31 December 2010. of financial position as at 31 December 2010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![QUESTION 7
The followingtrial balunce was extracted from the books of Mati Lid, a manufacturing company, as a
31 December 2010,
Sh. "000"
Sh. "000"
Inventories as at 1 January 2010:
Raw materials
Finished goods
Work in progress
21,000
38.900
13,500
180.000
145.000
Wages: Direct-
Factory
Sale of scrap raw materials
Royalties
Carriage inwards
Purchases of raw materials
Machinery (Cost Sh.280,000,000)
Computers (Cost Sh 20,000,000)
General factory expenses
Lighting
Factory power
Sales
35.000
7,000
3,500
370,000
230,000
12,000
31,000
7,500
13.700
1.000,000
Administrative salaries
Sales representative salaries
Commission on sales
Reni
4,000
30,000
11.500
12.000
4,200
13,400
Insurance
General administrative expenses
Bank charges
2,300
Discounts allowed
4,800
Carriage outwards
Accounts payable
Ordinary share capital (Sh. 10 each)
10% debentures
5,900
64,000
360,000
60.000
Buildings
Accounts receivable
III.000
142,300
76,800
1,500
Balance at bank
Cash in hand
Allowance for doubtful debts
Retained profits (1 January 2010)
Debenture interest
6.500
10.300
3.000
1,535,800
LI35,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe55123cb-2956-423d-98b7-a30f49a91cde%2F086e4736-7299-4f9a-85b5-eac212eb72ed%2Fd46evvr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 7
The followingtrial balunce was extracted from the books of Mati Lid, a manufacturing company, as a
31 December 2010,
Sh. "000"
Sh. "000"
Inventories as at 1 January 2010:
Raw materials
Finished goods
Work in progress
21,000
38.900
13,500
180.000
145.000
Wages: Direct-
Factory
Sale of scrap raw materials
Royalties
Carriage inwards
Purchases of raw materials
Machinery (Cost Sh.280,000,000)
Computers (Cost Sh 20,000,000)
General factory expenses
Lighting
Factory power
Sales
35.000
7,000
3,500
370,000
230,000
12,000
31,000
7,500
13.700
1.000,000
Administrative salaries
Sales representative salaries
Commission on sales
Reni
4,000
30,000
11.500
12.000
4,200
13,400
Insurance
General administrative expenses
Bank charges
2,300
Discounts allowed
4,800
Carriage outwards
Accounts payable
Ordinary share capital (Sh. 10 each)
10% debentures
5,900
64,000
360,000
60.000
Buildings
Accounts receivable
III.000
142,300
76,800
1,500
Balance at bank
Cash in hand
Allowance for doubtful debts
Retained profits (1 January 2010)
Debenture interest
6.500
10.300
3.000
1,535,800
LI35,800
![Additional information:-
Rent, insurance and lighting expenses are to be apportioned between factory, office and
distribution as follows:
Factory
%
Office
Distribution
Rent
70
30
Insurance
60
80
10
20
30
Lighting
2 Allowance for doubtful debts is to be maintained at 5% and bad debts of Sh. 3,500,000 arc to be
written-off.
Inventories as at 31 December 2010 were valued as follows:
Sh.
14,000,000
Raw materials
I inished goods
Work in progress
42,000,000
15.500,000
4 Accrued rent and general administrative expenses as at 31 December 2010 amounted to
Sh.1.200,000 and Sh1.500,000 respectively.
5. Prepaid insurance as at 31 December 2010 amounted to Sh.360,000
6. A provision for corporation tax amounting to Sh.25,340,000 is to be made,
7. Depreciation is to be provided as follows:
Rate per annum
12.5% on reducing balance basis
15% on straight line basis
Asset
Machinery
Computers
Ignore depreciation on buildings.
8. The directors propose to pay a dividend of Sh.0.50 per share.
Required;-
a) Manufacturing, trading and income statement for the year ended 31 December 2010.
Statement of financial position as at 31 December 2010.
h)
Man 2011 Questin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe55123cb-2956-423d-98b7-a30f49a91cde%2F086e4736-7299-4f9a-85b5-eac212eb72ed%2Fpjqa4gh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Additional information:-
Rent, insurance and lighting expenses are to be apportioned between factory, office and
distribution as follows:
Factory
%
Office
Distribution
Rent
70
30
Insurance
60
80
10
20
30
Lighting
2 Allowance for doubtful debts is to be maintained at 5% and bad debts of Sh. 3,500,000 arc to be
written-off.
Inventories as at 31 December 2010 were valued as follows:
Sh.
14,000,000
Raw materials
I inished goods
Work in progress
42,000,000
15.500,000
4 Accrued rent and general administrative expenses as at 31 December 2010 amounted to
Sh.1.200,000 and Sh1.500,000 respectively.
5. Prepaid insurance as at 31 December 2010 amounted to Sh.360,000
6. A provision for corporation tax amounting to Sh.25,340,000 is to be made,
7. Depreciation is to be provided as follows:
Rate per annum
12.5% on reducing balance basis
15% on straight line basis
Asset
Machinery
Computers
Ignore depreciation on buildings.
8. The directors propose to pay a dividend of Sh.0.50 per share.
Required;-
a) Manufacturing, trading and income statement for the year ended 31 December 2010.
Statement of financial position as at 31 December 2010.
h)
Man 2011 Questin
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