Question
The following balances have been extracted from the books of Limuru Manufacturers, a small scale manufacturing enterprise, as at 31 December 2002: Sh.000 Stocks as
The following balances have been extracted from the books of Limuru Manufacturers, a small scale manufacturing enterprise, as at 31 December 2002:
|
| Sh.000 |
Stocks as at 1 January 2002:
Purchases of raw materials Direct labour Factory overheads:
Administrative expenses:
Sales Plant and machinery:
Motor vehicles (for sales deliveries):
Creditors Debtors Drawings Balance at bank Capital at 1 January 2002 Provision for unrealized profit at 1 January 2002 Motor vehicles running costs | Raw materials Work in progress Finished goods
Variable Fixed Rent and rates Lighting Stationery and postage Staff salaries
At cost Provision for depreciation At cost Provision for depreciation | 7,000 5,000 6,900 38,000 28,000 16,000 9,000 19,000 6,000 2,000 19,380 192,000 30,000 12,000 16,000 4,000 5,500 28,000 11,500 16,600 48,000 1,380 4,500 |
Additional information:
1. Stocks at 31 December 2002 were as follows:
Sh.000
Raw materials 9,000
Work in progress 8,000
Finished goods 10,350
2. The factory output is transferred to the trading account at factory cost plus 25% of factory profit.
3. Depreciation is provided at the rates shown below on the original cost of fixed assets held at the end of each financial year:
Plant and machinery - 10% per annum
Motor vehicles - 25% per annum
4. Amounts accrued at 31 December 2002 for direct labour amounted to Sh.3,000,000 and rent and rates prepaid at 31 December 2002 amounted to Sh.2,000,000.
Required:
Balance Sheet as at 31 December 2002. ( 8 marks )
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