The following balances as at 31st December 1995 have been extracted from the books of...

The following balances as at 31st December 1995 have been extracted from the books of Nestle, a manufacturer. Stock at 1st Jan 1995: Raw materials 7,000 Work in progress 5,000 Finished goods 6,900 Purchases of raw materials 38,000 Direct labour 28,000 Factory overheads: 25,000 Administrative expenses: Rent and rates 19,000 Heat and light 6.000 Stationery and postages 2,000 Staff salaries 18,000 Sales 192,000 Plant and machinery: At cost 30,000 Depreciation of plant and machinery 12,000 Creditors 5,500 Debtors 28,000 Drawing 11,500 Motor vehicle (for sale delivery) at cost 16,000 Provision for depreciation 4,000 Capital at 1st January 1995 48,000 Bank 16,600 Motor vehicle running cost 4,500
Additional Information : (i)Stocks at 31st December 1995 were as follows: Raw materials 9,000 Work in progress 8,000 Finished goods 10,350 (ii) The factory output is transferred to the trading account at factory cost plus 25% for factory profit (iii)Depreciation is provided annually at the following percentages of the original cost of fixed assets held at the end of financial years
Plant and machinery 10% Motor vehicles 25%
(iv) Amount due at 31st of December 1995 for direct labour amounted 3,000 and Rent and rates prepaid 31st December 1995 amounted N200 Required: Prepare a manufacturing, trading, profit and loss account for the year ended 31st December 1995 and a balance sheet as at that date AAT?

1 Answers Available
Asked by AhmadOlarinde on 15th October, 2024