Jean Marsh owns a small business making and selling children’s toys. The following trial balance was extracted from her books on 31 December 20X9.

You are given the following additional information.

Questions:
For the year ended 31 December 20X9 prepare

(a) a manufacturing account showing prime cost and factory cost of production.

(b) a trading account.

(c) a profit and loss account, distinguishing between administrative and selling costs.

(d) a balance sheet as at 31 December 20X9.*

Transcribed Image Text:

Dr JE Cr Capital 15,000 Drawings 2,000 Sales 90,000 Stocks at 1 January 20X9: Raw materials 3,400 Finished goods 6,100 Purchases of raw materials 18,000 Carriage inwards 800 Factory wages 18,500 Office salaries 16,900 J Marsh: salary and expenses 10,400 General expenses: Factory Office Lighting Rent 1,200 750 2,500 3,750 Insurance Advertising Bad debts 950 1,400 650 Discount received 1,600 Carriage outwards 375 Plant and machinery, at cost less depreciation 9,100 Car, at cost less depreciation 4,200 Bank Cash in hand 3,600 325 Debtors and creditors 7,700 112,600 6,000 112,600