1
The financial year end of Mendip Limited is 30 June. At 30 June 2002, the following balances
are available:
£
Freehold land and buildings at cost 143,000
Plant and machinery at cost 105,000
Accumulated depreciation on plant and machinery 23,000
Purchase of raw materials 130,100
Sales 317,500
Factory rates 3,000
Factory heat and light 6,500
Debtors 37,200
Creditors 30,900
Wages (including £15,700 for supervision) 63,000
Direct factory expenses 9,100
Selling expenses 11,000
Office salaries and general expenses 43,000
Bank 24,500
General reserve 30,000
Profit and loss account 18,000
Stocks 1 July 2001: Raw materials 20,000
Finished goods 38,000
Dividends paid: Preference shares 840
Ordinary shares 20,000
(i
) The stocks at 30 June 2002 were: raw materials £22,000; finished goods £35,600.
(ii
) Salaries include £6,700 for directors’ fees.
(iii
) Depreciation is to be charged at 10% on cost of plant and machinery.
Required
Prepare a manufacturing, trading and profit and loss account for the year ending 30 June 2002.