B spikes

Trial Balance as on 31 December 2002

Stock of raw materials 1.1.2009		21,000
Stock of finished goods 1.1.2009		38,900
Work in progress 1.1.2009		13,500
Wages(direct 180,000: factory		325,000
indirect145,000)
Royalties		7,000
Carriage inwards (on raw materials)		3,500
Purchases of raw materials		370,000
Productive machinery (cost Kshs. 280,000)		230,000
Accounting machinery (cost Kshs. 20,000)		12,000
General factory expenses		31,000
Lighting		7,500
Factory power		13,700
Administrative salaries Delivery Van (cost Kshs.40000		44,000 36,000
Sales representatives salaries		30,000
Commission on sales		11,500
Rent		18,000
Insurance		4,200
General administration expenses		13,400
Bank charges		2,300
Discounts allowed		4,800
Carriage outwards		5,900
Sales		1000,000
Debtors	142,300
Creditors Bank		125,000 50,800
Cash O/D		1,500 34,000
Drawings		20,000
Capital as at 1.1.2009		296,800

Notes at 31.12.2009

1. Stock of raw materials Kshs. 24,000, stock of finished goods Kshs. 40,000, work in progress

Kshs. 15,000.

2. Lighting, and rent and insurance are to be apportioned: factory 5/6ths, administration 1/6th.

3. Depreciation on productive machinery,accounting machinery and delivery van is at 10 per cent per annum on cost.

4. Rent include a prepayment of rates of Sh. 6,000.

5. A trade debt of Sh. 14,000 is not expected to be realized and it is therefore written off

6. Accruals at 31 December 2009 were:

Water and electricity Sh. 5,000

Sundry expenses Sh. 4,000

Required:

Prepare a Manufacturing, Trading Profit and Loss Account for the year ended 31 December 2009. (10Marks)

Prepare a statement of financial position for the manufacturing company(10Marks)