spikes           Trial Balance as on 31 December 2002             Dr(Kshs) Cr(Kshs)       Stock of raw materials 1.1.2002 21,000         Stock of finished goods 1.1.2002 38,900         Work in progress 1.1.2002 13,500         Wages(direct Sh.180,000: factory indirect Sh.145,000) 325,000         Royalties 7,000         Carriage inwards (on raw materials) 3,500         Purchases of raw materials 370,000         Productive machinery (cost Sh.280,000) 230,000         Accounting machinery (cost Sh.20,000) 12,000         General factory expenses 31,000         Lighting 7,500         Factory power 13,700         Administrative Salaries 44,000         Sales representatives’ salaries 30,000         Commission on sales 11,500         Rent 12,000         Insurance 4,200         General administration expenses 13,400         Bank charges 2,300         Discounts allowed 4,800         Carriage outwards 5,900         Sales   1,000,000       Debtors and creditors 142,300 125,000       Bank 56,800         Cash 1,500         Drawings 20,000         Capital as at 1.1.2002   296,800         1,421,800 1,421,800                   Notes at 31.12.2002           1.Stock of raw materials Sh.24,000,Stock of finished goods Sh.40,000,Work in progress Sh.15,000.           2. Lighting, and rent and insurance are to be apportioned: factory 5/6ths, administration 1/6th.           3. Depreciation on productive and accounting machinery at 10 per cent per annum on cost.                       Required:           a)Prepare a manufacturing, Trading Profit and Loss Account for the year ended 31 December 2002.           b)Balance Sheet as at 31.12.2002

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B spikes

         

Trial Balance as on 31 December 2002

         
 

Dr(Kshs)

Cr(Kshs)

     

Stock of raw materials 1.1.2002

21,000

       

Stock of finished goods 1.1.2002

38,900

       

Work in progress 1.1.2002

13,500

       

Wages(direct Sh.180,000: factory indirect Sh.145,000)

325,000

       

Royalties

7,000

       

Carriage inwards (on raw materials)

3,500

       

Purchases of raw materials

370,000

       

Productive machinery (cost Sh.280,000)

230,000

       

Accounting machinery (cost Sh.20,000)

12,000

       

General factory expenses

31,000

       

Lighting

7,500

       

Factory power

13,700

       

Administrative Salaries

44,000

       

Sales representatives’ salaries

30,000

       

Commission on sales

11,500

       

Rent

12,000

       

Insurance

4,200

       

General administration expenses

13,400

       

Bank charges

2,300

       

Discounts allowed

4,800

       

Carriage outwards

5,900

       

Sales

 

1,000,000

     

Debtors and creditors

142,300

125,000

     

Bank

56,800

       

Cash

1,500

       

Drawings

20,000

       

Capital as at 1.1.2002

 

296,800

     
 

1,421,800

1,421,800

     
           

Notes at 31.12.2002

         

1.Stock of raw materials Sh.24,000,Stock of finished goods Sh.40,000,Work in progress Sh.15,000.

         

2. Lighting, and rent and insurance are to be apportioned: factory 5/6ths, administration 1/6th.

         

3. Depreciation on productive and accounting machinery at 10 per cent per annum on cost.

         
           

Required:

         

a)Prepare a manufacturing, Trading Profit and Loss Account for the year ended 31 December 2002.

         

b)Balance Sheet as at 31.12.2002

         

 

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