Example 1 Matumizi Limited is a factory manufacturing chemicals. The following trial balance was extracted from the books of Matumizi Ltd as at 31 December 2022 . 1. Inventory as at 31 December 2022 was valued as follows: - Raw materials sh. 3.750 .000 - Work-in-progress -sh. 7,750,000 - Finished goods -sh.25,000,000 2. Depreciation is to be provided on an annual basis as follows: - Building 10% on cost - Motor vehicles 25% on cost - Plant and machinery 30% on reducing balance 3. The company apportions expenses between factory and administration as follows 4. As at 31 December 2022, accrued distribution cost amounted to sh, 1,000,000 5. The directors proposed the following: - Payment of final dividend to preference shareholders - Dividend of - 3,75 per share to be paid to ordinary shareholders - Transfer of sh.10,000,000 to the general reserve 8. Corporation tax is estimated at sh, 24,750,000 Required: a) Masuficturing account b) income statement c) Statement of fumacial position Example 1 Matumizi Limited is a factory manufacturing chemicals. The following trial balance was extracted from the books of Matumizi Ltd as at 31 December 2022 . 1. Inventory as at 31 December 2022 was valued as follows: - Raw materials sh. 3.750 .000 - Work-in-progress -sh. 7,750,000 - Finished goods -sh.25,000,000 2. Depreciation is to be provided on an annual basis as follows: - Building 10% on cost - Motor vehicles 25% on cost - Plant and machinery 30% on reducing balance 3. The company apportions expenses between factory and administration as follows 4. As at 31 December 2022, accrued distribution cost amounted to sh, 1,000,000 5. The directors proposed the following: - Payment of final dividend to preference shareholders - Dividend of - 3,75 per share to be paid to ordinary shareholders - Transfer of sh.10,000,000 to the general reserve 8. Corporation tax is estimated at sh, 24,750,000 Required: a) Masuficturing account b) income statement c) Statement of fumacial position