Fourth Question (8 marks) The financial year end of Diary Manufacturing Limited is 31 December. On 31 December 2020, the following balances are available: Item Land and building at cost Plant and machinery at cost Accumulated depreciation on plant and machinery Purchase of raw material Sales Factory rates expenses Factory heats and light Account receivables Account payable Wages Direct expenses Selling expenses Administration and general expenses 286000 210000 46000 260200 635000 6000 13000 74400 61800 126000 18200 22000 46000 49000 60000 36000 40000 76000 1680 40000 Bank General reserve Retained profit Inventory 1st January 2020: Raw material Finished goods Dividends paid: Preference shares Ordinary shares Notes a) The inventory on 31 December 2020: Raw Material 44000, finished goods 35000. b) Salaries include 13400 for director fees. C) The wages include 31400 for supervision. d) Depreciation is to be charged at 10% on cost of plant and machinery. Required: Prepare the manufacturing accounts of the Diary Limited