Preparation of Trading, Profit And Loss Account, Manufacturing Account, And Balance Sheet - SS2 Accounting Past Questions and Answers - page 1

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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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