Bill Jones runs a small manufacturing company. At 31 December 1984.

a trial balance extracted from his records was as follows:

The following adjustments are to be taken into account:

Required:
Prepare the manufacturing, trading and profit and loss account for the year ended 31 December 1984, and a balance sheet as at that date.

Transcribed Image Text:

Capital 23,400 Reserves 2,000 Creditors 1,000 Sales 37,330 Land and buildings (cost) 12,000 Machinery (cost). 9,000 Office equipment (cost) 1,000 Vans (cost) 3,000 Cash 700 Debtors 6,000 Factory wages 4,980 Warehouse wages 2,030 Provision for doubtful debts 420 Depreciation-buildings 4,000 -machinery 3,440 -office equipment 700 -vans 1,200 Purchases raw materials 7,800 -finished goods 1,400 Factory expenses 3,440 Sales returns 400 Warehouse expenses 3,000 Administration expenses 1,550 Selling expenses 4,000 Stocks at 1.1.84-raw material 1,400 -WIP 2,250 -finished goods 9,760 Miscellaneous revenue 220 73,710 73,710