Meduling 1 Header Paragraph 5 - - - - - Question 4 (CLO) The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2010 and presented to you the Financial Accountant for analysis: Trial Balance Details Accounts Dr $ Cr$ Insurance 1.200,000 Direct expenses 4,000,000 Bills payable 150,000 Net sales 80,000,000 Office furniture and fittings 4,500,000 Accumulated depreciation on furniture & fittings 900,000 Return outwards of direct raw materials 330,000 Rent 3,000,000 500.000 Bank overdraft 550,000 Direct raw materials purchased 20,330,000 Indirect factory wages 4.000.000 Stock of direct raw materials January 1, 2010 6,500,000 Stationery 1.100.000 Provision for unrealized profit 600,000 Capital 28,940,000 Bad debts 370,000 Provision for bad and doubtful debts 400.000 Production workers salaries | 12,000,000 Cash in hand 1,500,000 Accounts payable 5,600,000 Electricity 2,400,000 Commission 4,800,000 1,000,000 Stock of finished goods January 1, 2010 | 6,600,000 Discounts 800,000 750,000 Carriage inwards of direct raw materials 1,600,000 Administrative salaries 8,400,000 Accounts receivable 9,000,000 Motor vehicles 20.000.000 8.000.000 Provision for depreciation on motor vehicles Work in progress, January 1, 2010 3,500,000 Bills receivable 420,000 Plant and machinery 15,000,000 6.000.000 Accumulated depreciation on plant and machinery Motor vehicles repair cost 700.000 Cash drawings 2.000.000 133,720,000 133,720,000 aBCCD AaBbCD AaBbCcD AaBbCD AaBbCel ABC ABCD ABCD AABaCCDA ubtle Em... Emphasis intense E. Strong Quote Intense Q... Subtle Red Intense R. Book Title Change Styles Styles otes: Depreciation is to be charged as follows: motor vehicles 20% reducing balance, office furniture and fittings 10% straight line; and plant and machinery 10% reducing balance. (ii) Insurance amounting to $120,000 was unpaid as at December 31, 2010. (iii) Motor vehicle expenses are to be apportioned 3:2 between factory and office respectively. (iv) The company adds 10% factory profit to its cost of production Rent payable is to be apportioned 3:1 between factory and office respectively: 60% of the insurance relates to the factory and of the electricity usage relates to the factory. (vi) Commission receivable amounting to $150,000 was due to the company as at December 31, 2010. (vii) The provision for bad and doubtful debts is to be adjusted to 16% of debtors (viii) Indirect factory wages accrued as at December 31, 2010 amounted to $180,000 (ix) Stocks as at December 31, 2010 were as follows: Work in progress $4.900,000, Finished goods, $7,700,000 and direct raw materials, $5,000,000 Required: (a) Prepare Manufacturing, Trading and Profit and Loss Account for the year ending December 31, 2010. (28 marks) (b) A Balance Sheet as at December 31, 2010. (12 marks) End of Paper