Q.NOT) FROM THE FOLLOWING PREPARE FINAL ACCOUNTS TRIAL BALANCE AS ON 31/12 2007 DEBIT CREDIT STOCK OF RAW MATERIALS ON 1/1/2007 21000 STOCK OF FINISHED GOODSON 1/1/2007 38900 WORK IN PROGRESS ON 1/1 2007 13500 WAGES ROYALTIES CARRIAGE ONWARDS PURCHASE OF RAW MATERIALS 370000 MACHINERY (COST 280000) 230000 COMPUTERS (COST 20000) 12000 GENERAL FACTORY EXPENSES 31000 LIGHTING 7500 FACTORY POWER 13700 ADMINISTRATION SALARIES SALES REP SALARIES 30000 COMMISSION ON SALES 11500 RENT INSURANCE GENERAL ADMINISTRATION EXPENSES 13400 BANK CHAARGES 2300 DISCOUNTS ALLOWED CARRIAGE OUTWARDS SALES DEBTORS AND CREDITORS 66000 BANK 16800 CASH DRAWINGS 60000 CAPITAL AS ON 1/1/2007 357800 TOTAL 1421800 1421800 NOTES AT 31/12/2007 I STOCK OF RAW MATERIALS 24000, STOCK OF FINISHED GOODS 40000, WORK IN PROGRESS 15000 2. LIGHTING, RENT AND INSURANCE ARE TO BE APPORTIONED: FACTORY 5/6.ADMINISTRATION 16 3. DEPRECIATION ON MACHINERY AND COMPUTERS AT 10 PERCENT PA. ON COST (25 MARKS) Q.NO.2) THE ACCOUNTANT HAS FOUND THE FOLLOWING DETAILS OF TRANSACTIONS FOR J.FRANK'S SHOP FOR THE YEAR ENDED 31/12/2005 1) THE SALES ARE MOSTLY ON CREDIT.NO RECORD OF SALES HAS BEEN KEPT.BUT 61500 HAS BEEN RECEIVED FROM DEBTORS-48000 BY CHEQUE AND 13500 IN CASH 2) AMOUNT PAID TO SUPPLIERS BY CHEQUE 31600 3) EXPENSES PAID DURING THE YEAR:BY CHEQUE RENT 3800, GENERAL EXPENSES 310,BY CASH:RENT 400 4) J.FRANK TOOK 250 EACH PER WEEK FOR 52 WEEKS AS DRAWINGS 5) OTHER INFORMATIONS 31/12/2004 31/12/2005 DEBTORS 5500 6600 CREDITORS 1600 2600 O/S RENT 350 BANK 5650 17940 CASH 320 420 STOCK 6360 6800 FIXTURES 3300 ? 6) DEPRECIATION ON FIXTURES AT 10%P.A. SHOW THE NECESSARY ACCOUNTS (25 MARKS) Q4. Read the following and answer the questions below. On 31 December 20X8 the bank column of C Tench's cash book showed a debit balance of K 1,500. The monthly bank statement written up to 31 December 20X8 showed a credit balance of K 2,950. On checking the cash book with the bank statement it was discovered that the following transactions had not been entered in the cash book: a) Dividends of K 240 had been paid directly to the bank. b) A credit transfer - Customs and Excise VAT refund of K 260 - had been collected by the bank. c) Bank charges K 30. a) A direct debit of K 70 for the RAC subscription had been paid by the bank. e) A standing order of K 200 for C Tench's loan repayment had been paid by the bank. 1)C Tench's deposit account balance of K 1,400 was transferred into his bank current account. A further check revealed the following items: a) Two cheques drawn in favour of T Cod K 250 and F Haddock K 290 had been entered in the cash book but had not been presented for payment b) Cash and cheques amounting to K 690 had been paid into the bank on 31 December 20X8 but were not credited by the bank until 2 January 20X9. Required: Starting with the debit balance of 1,500, bring the cash book (bank columns) up to date and then balance the bank account. Then prepare a bank reconciliation statement as at 31 December 20X8. (25 marks)