Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 )

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Audit Automation The Principles Of Statistical Sampling Of Business Accounts

Authors: Nathan Poeschl

1st Edition

B0B17YP1SR, 979-8829041991

More Books

Students also viewed these Accounting questions

Question

2. Identify conflict triggers in yourself and others

Answered: 1 week ago