1
A business both buys loose tools and also makes some itself. The following data is available
concerning the years ending 31 December 2007, 2008 and 2009.
2007 £
Jan 1 Stock of loose tools 2,400
During the year:
Bought loose tools from suppliers 3,800
Made own loose tools: the cost of wages of employees being
£490 and the materials cost £340
Dec 31 Loose tools valued at 5,100
2008
During the year:
Loose tools bought from suppliers 1,820
Made own loose tools: the cost of wages of employees being £610
and the materials cost £420
Dec 31 Loose tools valued at 5,940
2009
During the year:
Loose tools bought from suppliers 2,760
Made own loose tools: the cost of wages of employees being £230
and the materials cost £370. Received refund from a supplier for
faulty tools returned to him 142
Dec 31 Loose tools valued at 5,990
You are to draw up the loose tools account for the three years, showing the amount transferred as
an expense in each year to the manufacturing account.