The trial balance extracted at 30 April 20X1 from the books of Upton Upholstery, a furniture manufacturer, is given below.

1. At 30 April 20X1 accrued direct factory wages amounted to £600 and office wages £100; rent included £600 paid on 20 January 20X1 for the period 1 January to 30 June 20X1.
2. Records showed that, at the year end, inventory values were as follows: raw materials £5,400; incomplete production £17,000; finished goods £8,000.
3. Depreciation should be allowed for factory machinery on the straight line method over seven years, and office equipment on the reducing balance method at 25 per cent per annum.
4. An allowance of £1,000 should be made for irrecoverable debts.
5. Light and heat should be apportioned between the factory and office in the ratio 4 : 1, respectively; rent and rates in the ratio 3 : 1, respectively.

Required
Prepare a manufacturing account and a statement of profit or loss for the year ended 30 April 20X1 and a statement of financial position at that date.

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Factory machinery at cost Factory machinery depreciation 1/5/X0 Office equipment Office equipment depreciation 1/5/X0 Trade receivables and payables Cash and bank Bank loan Inventories 1/5/X0 - Raw materials -Incomplete production - Finished goods Carriage inwards Carriage outwards Purchases- raw materials Light and heat Rent and rates Direct factory wages Office wages Sales commission to selling agents Sales of finished goods Capital account Drawings Debit £ 28,000 2,000 15,000 2,300 4,000 16,400 9,000 1,200 700 84,000 3,000 6,600 19,900 5,200 1,400 9,100 207,800 Credit £ 5,000 800 16,000 11,000 140,000 35,000 207,800