[sansah83]

 
DR GH¢
 
CR GH¢
Drawing and Capital
11,930

36,460
Inventory at 1st July, 2014
 

 
Raw Material
1,000

 
Finished Goods
1,500

 
Purchases of raw materials
75,000

 
Factory Wages
5,000

 
Salaries
9,000

 
Insurance
10,000

 
Discounts
2,570

3,500
Sales
 

106,000
Provision for unrealized profit 1st July, 2014
 

2,040
Land and building:
11,000

 
(Land element at cost 1,500 and Building at cost 12,000)

Plant and Machinery at cost
10,200

 
Office Equipment (cost 8,000)
6,000

 
Trade Receivables and Trade Payables
23,000

26,700
Cash and Bank
8,500

 
 
174,700

174,700
The following Trial Balance was extracted from the books of Oliver Twist Manufacturing Ltd as at
30th June, 2015.
The following additional information is also relevant:
i. Inventories at 30th June, 2015:
Raw material GH¢2,000
Finished goods GH¢11,440

ii. On the 31st December, 2014, the business purchased Plant and Machinery, GH¢ 2,000. Full value of Office Equipment was sold for GH¢ 6,100 on 31st December, 2014. Provision for depreciation is 10% per annum on cost of fixed assets excluding land.

iii. Three quarter’s Salaries are shown in the Trial Balance, an equal amount is paid for Salaries for each month of the year.

iv. GH¢ 310 represents Insurance prepaid, and Light and heat outstanding is GH¢ 850 at end of the year. GH890 had been charged to Insurance for the owner’s life assurance at the end of the year 30th June, 2015

v. Finished goods manufactured are transferred at a mark-up of 10%.

vi. A customer, owing GH¢ 3,000 has been declared bankrupt. This amount is to be written off in full, and 5% provision for bad debt is to be maintained.

vii. The following expenses are to be allocated as follows:

 
Factory
Administration
Light and Heat
80%
20%
Salaries
70%
30%
Insurance
20%
80%
Depreciation of Building
40%
60%

Required to:

a. Prepare Manufacturing, Trading, Profit or Loss Account for the year ended
30th June, 2015

b. Write up the Fixed Asset Schedule as at 30th June, 2015

c. Show up Cash Book balance to be transferred to Statement of Financial Position as at 30th June, 2015

d. Draft the Statement of Financial Position as at 30th June, 2015
Solve it for me

[Author]

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