A From the following information, prepare a manufacturing account and income statement for the year ending 31

Question:

A From the following information, prepare a manufacturing account and income statement for the year ending 31 December 2012 and a statement of financial position as at 31 December 2012 for J. Jones Limited.

image text in transcribed

Make provision for the following: (i) Inventory in hand at 31 December 2012: Raw materials £25,000 Work-in-progress £11,000 Finished goods £26,000.

(ii) Depreciation of 10% on plant and machinery using the straight line method. (iii) 80% of fuel and light and 75% of rent and rates to be charged to manufacturing. (iv) Allowance for doubtful debts: 5% of sundry accounts receivable. (v) £4,000 outstanding for fuel and light. (vi) Rent and business rates paid in advance: £5,000. (vii) Market value of finished goods: £382,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

Question Posted: