Question 1: Manuremade Enterprises is a manufacturing firm based at Reduit. The following figures
were extracted from the accounting records on 31st December 2000.
Inventory (1st January 2000): Raw Materials 26,700
Work in Progress 6,900
Finished Goods 23,100
Raw Materials Purchased 197,450
Factory General Expenses 7,190
Manufacturing Wages 151,000
Repairs to Plant & Machinery 28,400
Power, Light and Heat 15,960
Carriage Inwards 2,050
Carriage Outwards 4,350
Printing and Stationery 18,650
Rates & Insurance 2,400
Return Inwards 1,200
Discount Allowed 1,950
Plant & Machinery (Cost) 265,000
Office Equipment (Cost) 200,000
Selling & distribution Expenses 11,000
Indirect Labour 6,700
Accumulated Depreciation : Plant & Machinery 150,000
Office Equipment 50,000
Cash in hand 1,500
Cash at bank 65,000
Trade receivables and Trade payables 150,000 75,500
The following information may be also relevant:
1. Inventory at 31 December 2000 were as follows:
Raw Materials Rs. 18,900
Work in progress Rs. 7,950
Finished Goods Rs. 37,950
2. An amount of Rs 800 relating to Rates and Insurance were paid for the year ended 31st March 2001.
3. Two fifth of “Rates and Insurance” and one quarter of “Power, Light and Heat” are to be charged to the
4. The following depreciation policy has been agreed (No scrap value):
Plant & Machinery by 20% using reducing balance method.
Office Equipment by 25% using straight line method.
5. It was noted that an amount of Rs 750 for Printing & Stationery were still due at the end of the year.
A Manufacturing Account, Income Statement and a statement of financial position for the year ended 31
December 2000. Question 2: The following list of balances has been extracted from MetalSheets books and they relate to
Financial Year ended 31st December 2003.
Allowance for Bad and Doubtful Debts1.01.03 1,220