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Candidate's Name: Bangura started business on January 2020 as a manufacturer of children's toys. The balances extracted from his books as at December 31, 2020
Candidate's Name: Bangura started business on January 2020 as a manufacturer of children's toys. The balances extracted from his books as at December 31, 2020 were as follows: Plant and machinery at cost (January 1, 2020) Sales Purchases of raw materials Repairs of machinery Direct factory wages Indirect factory wages Carriage on raw materials Electricity and rent Sales and distribution expenses Administrative expenses GH 90,000 190,000 63,000 13,600 40,000 7,000 4,000 16,600. 15,000 40,000 Additional Information: (i) Depreciate plant and machinery at 10% per annum on cost; (ii) Stocks at December 31, 2020: Raw materials Partly finished goods Finished goods GH 10,000 4,000 15,300 (iii) Electricity and rent owed as at December 31, 2020 was GH 3,000, (iv) Electricity and rent is to be apportioned to factory and administration in the ratio of 3:2; (v) Goods produced during the year are to be transferred to the trading account at GH 150,000. You are required to prepare Bangura's Manufacturing, Trading, Profit and Loss Account for the year ended 31st December 2020. [15 marks]
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