Here is the trial balance at 31st December, 19_5, after the manufacturing account has been completed, of a company manufacturing and selling two products, X and Y:

Required:
Prepare, in vertical and columnar form for internal use, a trading and profit and loss account for the year ended 31st December, 19_5, showing the amount of pre-tax profit made by each product;

Transcribed Image Text:

Ordinary shares of 25 pence each, fully paid Retained profit at 31st December, 19_4 Fixed assets at cost Depreciation provision at 31st December, 19_5 Depreciation charge for year: Administration Distribution Materials stock at 31st December, 19_5 Work-in-progress at 31st December, 19_5: Product X Product Y Finished goods stock at 31st December, 19_4: Product X Dr Cr 000 000 3.000 1 900 4.000 1000' 40 40 700 100 50 200 940 900 Product Y Debtors Bad debts provision 40 40 Manufacturing overhead prepaid at 31st December, 19_5 10 Cash at bank and in hand 695 Creditors 250 Manufacturing overhead accrued at 31st December, 19_5 50 Sales: Product X 6.000 Product Y 4.000