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The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are
The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are in sh 000). Ordinary Share Capital of sh 10 each 10% preference share capital sh 25 each Opening stock of raw materials Opening stock of work in progress Carriage inward of raw materials Share premiums Purchases of raw material Sales Retained profit balance at 1st Jan 2020 Return inward Factory building Plant and machinery Office furniture and equipment Delivery van Bad debts written off Direct wages (factory) Administrative expenses Opening stock of finished goods Factory overheads Accounts receivables and payable Cash in hand and at bank 10% Corporate Bonds Rent income Selling and distribution expenses Director allowances Allowances for bad debts Discount received Factory power and lighting Interest paid on corporate bonds Additional information: Sh 000 1,778 1,360 394 Sh 000 13,000 12,000 1,296 27,094 42,976 1,172 144 10,000 7,500 4,500 2,000 162 6,785 1,992 9,876 191 12,000 276 7,322 7,200 2,800 710 872 480 242 494 360 88488 88488 a) Outstanding expenses: Direct factory wages Kshs. 115,000; office administrative expenses Kshs. 29,000 b) Prepaidexpenses:sellingexpensesKshs.39,000;factorypowerandlightingKshs.31,000. c) Interest on 10% outstanding should be accrued. d) RentincomeamountingtoKsh48,000havenotbeenreceived. e) Plant and machinery and delivery van should be depreciated by 20% and furniture and equipment and factory building by 10%. f) The factory building floor area used for office administrative is 35% g) Adjustallowancesforbaddebtsto5%ofdebtors. h) ClosingstockfinishedgoodsisvaluedatKshs.14,566,000,rawmaterialsisKsh2,380,000 and work in progress is Ksh 1,350,000 i) Goods are transferred from the factory to trading department at cost. j) Corporate tax expensed is estimated at Ksh 2.6 million k) Directorsareproposingdividendstopreferenceshareholdersandordinaryshareholdersat Ksh 1.5 per shares. Required: a) Manufacturing account b) Statement of profit and loss for the year ended 31st Dec 2020 c) Statement of changes in equity. d) Statement of Financial Position e) The following categories of ratio f) Profitability ratios g) Liquidity ratio h) Efficiency ratio i) Gearing ratio j) Shareholders ratio (market price per ordinary shares is Ksh 18) Introduction to Accounting 2 Assignment 2 The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are in sh"000) Sh 000 Sh 000 Ordinary Share Capital of sh 10 each 13,000 10% preference share capital sh 25 each 12.000 Opening stock of raw materials 1,778 Opening stock of work in progress 1.360 Carriage inward of raw materials 394 Share premiums 1,296 Purchases of raw material 27,0 Sales 42.976 Retained profit balance at 1 Jan 2020 1.172 Return inward 144 Factory building 10.000 Plant and machinery 7,500 Office furniture and equipment 4,500 Delivery van 2.000 Bad debts written off 162 Direct wages (factory) 6,785 Administrative expenses 1,992 Opening stock of finished goods 9,876 Factory overheads 191 Accounts receivables and payable 12.000 7,322 Cash in hand and at bank 276 10% Corporate Bonds 7,200 Rent income 2.800 Selling and distribution expenses 710 Director allowances 872 Allowances for bad debts 480 Discount received 242 Factory power and lighting Interest paid on corporate bonds 360 88488 88488 Additional information: a) Outstanding expenses: Direct factory wages Kshs. 115,000, office administrative expenses Kshs. 29,000 b) Prepaid expenses selling expenses Kshs. 39,000, factory power and lighting Kshs. 31,000 c) Interest on 10% outstanding should be accrued. d) Rent income amounting to Ksh 48,000 have not been received. 494 e) Plant and machinery and delivery van should be depreciated by 20% and furniture and equipment and factory building by 10%. ) The factory building floor area used for office administrative is 35% g) Adjust allowances for bad debts to 5% of debtors. h) Closing stock finished goods is valued at Kshs. 14,566,000, raw materials is Ksh 2,380,000 and work in progress is Ksh 1,350,000 i) Goods are transferred from the factory to trading department at cost. ) Corporate tax expensed is estimated at Ksh 2.6 million k) Directors are proposing dividends to preference shareholders and ordinary shareholders at Ksh 1.5 per shares. Required: a) Manufacturing account b) Statement of profit and loss for the year ended 31 Dec 2020 c) Statement of changes in equity. d) Statement of Financial Position The following categories of ratio f) Profitability ratios g) Liquidity ratio h) Efficiency ratio i) Gearing ratio 1) Shareholders ratio (market price per ordinary shares is Ksh 18) Introduction to Accounting 2 Assignment 2 The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are in sh"000) Sh 000 Sh 000 Ordinary Share Capital of sh 10 each 13,000 10% preference share capital sh 25 each 12.000 Opening stock of raw materials 1,778 Opening stock of work in progress 1.360 Carriage inward of raw materials 394 Share premiums 1,296 Purchases of raw material 27,0 Sales 42.976 Retained profit balance at 1 Jan 2020 1.172 Return inward 144 Factory building 10.000 Plant and machinery 7,500 Office furniture and equipment 4,500 Delivery van 2.000 Bad debts written off 162 Direct wages (factory) 6,785 Administrative expenses 1,992 Opening stock of finished goods 9,876 Factory overheads 191 Accounts receivables and payable 12.000 7,322 Cash in hand and at bank 276 10% Corporate Bonds 7,200 Rent income 2.800 Selling and distribution expenses 710 Director allowances 872 Allowances for bad debts 480 Discount received 242 Factory power and lighting Interest paid on corporate bonds 360 88488 88488 Additional information: a) Outstanding expenses: Direct factory wages Kshs. 115,000, office administrative expenses Kshs. 29,000 b) Prepaid expenses selling expenses Kshs. 39,000, factory power and lighting Kshs. 31,000 c) Interest on 10% outstanding should be accrued. d) Rent income amounting to Ksh 48,000 have not been received. 494 e) Plant and machinery and delivery van should be depreciated by 20% and furniture and equipment and factory building by 10%. ) The factory building floor area used for office administrative is 35% g) Adjust allowances for bad debts to 5% of debtors. h) Closing stock finished goods is valued at Kshs. 14,566,000, raw materials is Ksh 2,380,000 and work in progress is Ksh 1,350,000 i) Goods are transferred from the factory to trading department at cost. ) Corporate tax expensed is estimated at Ksh 2.6 million k) Directors are proposing dividends to preference shareholders and ordinary shareholders at Ksh 1.5 per shares. Required: a) Manufacturing account b) Statement of profit and loss for the year ended 31 Dec 2020 c) Statement of changes in equity. d) Statement of Financial Position The following categories of ratio f) Profitability ratios g) Liquidity ratio h) Efficiency ratio i) Gearing ratio 1) Shareholders ratio (market price per ordinary shares is Ksh 18)
The following trial balance was extracted from the books of Gilber Ltd, a manufacturing and trading company, on 31 December 2020 (all the figures are in sh 000).
Ordinary Share Capital of sh 10 each 10% preference share capital sh 25 each Opening stock of raw materials
Opening stock of work in progress Carriage inward of raw materials Share premiums
Purchases of raw material
Sales
Retained profit balance at 1st Jan 2020 Return inward
Factory building
Plant and machinery
Office furniture and equipment Delivery van
Bad debts written off
Direct wages (factory) Administrative expenses
Opening stock of finished goods Factory overheads
Accounts receivables and payable Cash in hand and at bank
10% Corporate Bonds
Rent income
Selling and distribution expenses Director allowances
Allowances for bad debts
Discount received
Factory power and lighting
Interest paid on corporate bonds
Additional information:
Sh 000
1,778 1,360 394
Sh 000 13,000 12,000
1,296 27,094
42,976 1,172
144 10,000 7,500 4,500 2,000 162 6,785 1,992 9,876 191 12,000 276
7,322
7,200
2,800 710
872
480
242 494
360 88488
88488
a) Outstanding expenses: Direct factory wages Kshs. 115,000; office administrative expenses Kshs. 29,000
b) Prepaidexpenses:sellingexpensesKshs.39,000;factorypowerandlightingKshs.31,000. c) Interest on 10% outstanding should be accrued.
d) RentincomeamountingtoKsh48,000havenotbeenreceived.
e) Plant and machinery and delivery van should be depreciated by 20% and furniture and equipment and factory building by 10%.
f) The factory building floor area used for office administrative is 35%
g) Adjustallowancesforbaddebtsto5%ofdebtors.
h) ClosingstockfinishedgoodsisvaluedatKshs.14,566,000,rawmaterialsisKsh2,380,000
and work in progress is Ksh 1,350,000
i) Goods are transferred from the factory to trading department at cost.
j) Corporate tax expensed is estimated at Ksh 2.6 million
k) Directorsareproposingdividendstopreferenceshareholdersandordinaryshareholdersat Ksh 1.5 per shares.
Required:
a) Manufacturing account
b) Statement of profit and loss for the year ended 31st Dec 2020
c) Statement of changes in equity.
d) Statement of Financial Position
e) The following categories of ratio
f) Profitability ratios
g) Liquidity ratio
h) Efficiency ratio
i) Gearing ratio
j) Shareholders ratio (market price per ordinary shares is Ksh 18)
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