Illustration 9.2B Sardonix Couture Ltd, manufactures shoes. The following trial balance was extracted from the books of account of the company as at 31st December 2018 N Inventory on 1st January 2018 Finished shoes Work-in-progress Raw Materials Furniture & Fittings Bank Overdraft Drawings 156,400 17,300 22,610 73,500 4,800 6,750 9 MANUFACTURING ACCOUNTS Machinery Office Equipment Cash in hand Delivery van Salaries and wages Capital (Equity) Factor wages Repairs of Delivery van Stationeries Sales (Turnover) shoes Selling expenses Lighting and Cooling Sundry Debtors (Receivables) Land and Building Bad debt Factory insurance Provision for bad debts Administrative expenses Sundry Creditors (Payables) Factory repairs and maintenance 328,400 85,630 2,760 124,500 98,140 727,500 68.130 21,360 47,180 975,220 19,040 28,350 89,490 467,200 5,330 4,900 2,510 16,470 223,920 34,690 Additional information provided are as follows: (a) Inventory on 31st December 2018 were: Finished goods N181,340 Work-in-progress N12,750 Raw Materials N36,620 (b) Depreciation is to be written off the machinery at 5% and all other non-current assets except land and building at 10% (c) A provision for bad debt is to be adjusted 2.5% of the new balance of sundry (receivables). (d) A debt of N130 is to be considered irrecoverable and should be written off (c) Stationery of N570 is unused (1) Lighting and cooling is to be allowed to factory and office in the ratio of 5:1 (8) Factory wages of N1,870 are yet to be paid You are required to prepare: i. Manufacturing Account 11. A statement of comprehensive income for the year ended 31st December 2-018 and a statement of financial position as at that date