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.

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.

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Purchase of raw materials Fuel and light Administration salaries Factory wages Carriage outwards Rent and business rates Sales Returns inward General office expenses Repairs to plant and machinery Inventory at 1 January 2012: Raw materials Work-in-progress Finished goods Sundry accounts payable Capital account Freehold premises Plant and machinery Accounts receivable Accumulated provision for depreciation on plant and machinery Cost in hand 258,000 21,000 17,000 59,000 4,000 21,000 7,000 9,000 9,000 21,000 14,000 23,000 410,000 80,000 20,000 11,000 984,000 E 482,000 37,000 457,000 8,000 984,000