Question 5 From the following information, prepare the manufacturing, trading and profit and loss account for the year ending 31 December 2008 for the firm of S. Shaw Limited. Dr Cr Purchases of raw materials 258,000 Fuel and light 21000 Administration salaries 17,000 Factory wages 59,000 Carriage Outwards 4000 Rent and Business Rates 21,000 Sales 482,000 Return Inwards 7000 General office Expenses 9000 Repairs to Plant and Machinery 9000 Stock at January 2008 Raw Materials 21,000 Work in Progress 14,000 Finish goods 23,000 Sundry creditors 37,000 Capital 457,000 Freehold Premises 410,000 Plant and machinery 80,000 Debtors 20,000 Accumulated Provision for depreciation: Plant & Machinery 8000 Cash in hand 11000 984,000 984,000 Make provision for the following: Stock in hand at 31 December 2008: Raw materials $ 25,000 Work in progress $ 11,000 Finished goods $ 26,000 Depreciation of 10% on plant and machinery using the straight-line method 80% of fuel and light 75% of rent and rates to be charged to manufacturing Doubtful debts provision: 5% of sundry debtors $4000 outstanding for fuel and light Rent and business rates paid in advance: $ 5,000
Question 5
From the following information, prepare the manufacturing, trading and
Dr Cr
Purchases of raw materials 258,000
Fuel and light 21000
Administration salaries 17,000
Factory wages 59,000
Carriage Outwards 4000
Rent and Business Rates 21,000
Sales 482,000
Return Inwards 7000
General office Expenses 9000
Repairs to Plant and Machinery 9000
Stock at January 2008
Raw Materials 21,000
Work in Progress 14,000
Finish goods 23,000
Sundry creditors 37,000
Capital 457,000
Freehold Premises 410,000
Plant and machinery 80,000
Debtors 20,000
Accumulated Provision for
Cash in hand 11000
984,000 984,000
Make provision for the following:
- Stock in hand at 31 December 2008:
- Raw materials $ 25,000
- Work in progress $ 11,000
- Finished goods $ 26,000
- Depreciation of 10% on plant and machinery using the straight-line method
- 80% of fuel and light 75% of rent and rates to be charged to manufacturing
- Doubtful debts provision: 5% of sundry debtors
- $4000 outstanding for fuel and light
- Rent and business rates paid in advance: $ 5,000
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