1
From the following information, prepare a manufacturing, trading and profit and loss
account for the year ending 31 December 2006 and the balance sheet as at 31 December 2006 for
the firm of J Jones Limited.
Make provision for the following:
(i
) Stock in hand at 31 December 2006:
Raw materials £25,000
Work in progress £11,000
Finished goods £26,000.
(ii
) Depreciation of 10% on plant and machinery using the straight line method.
(iii
) 80% of fuel and light and 75% of rent and rates to be charged to manufacturing.
(iv) Doubtful debts provision: 5% of sundry debtors.
(v) £4,000 outstanding for fuel and light.
(vi
) Rent and business rates paid in advance: £5,000.
(vii
) Market value of finished goods: £382,000.