Preparation of Trading, Profit And Loss Account, Manufacturing Account, And Balance Sheet - SS2 Accounting Past Questions and Answers - page 1
From the trial balance of Folushola Fashions Ltd. on 31 December 2021, prepare the manufacturing account and trading, profit and loss account for the year ended 31 December 2022, given the following additional information:
-
Closing stock of raw materials: ₦12500
-
Closing stock of finished goods: ₦45700
-
Closing work in progress: ₦8200
TRIAL BALANCE AS OF DECEMBER 31, 2021
|
Account Title |
Debit (₦) |
Credit (₦) |
|
Machinery |
180000 |
|
|
Carriage inward |
25000 |
|
|
Factory rent |
85000 |
|
|
Factory wages |
180000 |
|
|
Factory utilities |
42500 |
|
|
Office expenses |
24000 |
|
|
Raw materials inventory |
58500 |
|
|
Work in progress |
19500 |
|
|
Finished goods inventory |
92000 |
|
|
Sales |
2970000 |
|
|
Discounts allowed |
30000 |
|
|
Debtors |
367500 |
|
|
Creditors |
123000 |
|
|
Cash at bank |
112500 |
|
|
Advertising expenses |
35000 |
|
|
Insurance expenses |
16500 |
|
|
Packing expenses |
25000 |
|
|
Selling expenses |
38000 |
|
|
Income tax expense |
50000 |
|
|
Dividends |
45000 |
|
|
Direct labour |
300000 |
|
|
Retained earnings |
318000 |
|
|
Purchases |
62500 |
|
|
Administrative salaries |
300000 |
|
|
Total |
1805000 |
3,67500 |
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