1
E Wilson is a manufacturer. His trial balance at 31 December 2002 is as follows:
£ £
Delivery van expenses 1,760
Lighting and heating: Factory 7,220
Office 1,490
Manufacturing wages 72,100
General expenses: Factory 8,100
Office 1,940
Sales reps: commission 11,688
Purchase of raw materials 57,210
Rent: Factory 6,100
Office 2,700
Machinery (cost £40,000) 28,600
Office equipment (cost £9,000) 8,200
Office salaries 17,740
Debtors 34,200
Creditors 9,400
Bank 16,142
Sales 194,800
Van (cost £6,800) 6,200
Stocks at 31 December 2001:
Raw materials 13,260
Finished goods 41,300
Drawings 24,200
Capital 155,950
360,150 360,150
Prepare the manufacturing, trading and profit and loss account for the year ending 31 December
2002 and a balance sheet as at that date. Give effect to the following adjustments:
1
Stocks at 31 December 2002: raw materials £14,510; finished goods £44,490. There is no work in
progress.
2
Depreciate machinery £3,000; office equipment £600; van £1,200.
3
Manufacturing wages due but unpaid at 31 December 2002 £550; office rent prepaid £140.