3. The following balances were extracted from the books of Flash Manufacturing Enterprises on July 31, 2015. GH¢ Inventory at August 1, 2014: Raw Materials Work-in-progress Finished goods 46,000 29,000 79,000 |149,000 11,000 22,000 33,000 17,000 11,000 6,000 12,000 14,000 18,200 80,000 100,000 40,000 8,000 16,000 Accumulated depreciation: plant and machinery 16,000 |300,000 20,000 Purchases of raw materials |Carriage on raw materials Rent and rates Factory wages Factory power Factory supervisor's salary Carriage outwards Selling expenses Insurance General expenses Plant and machinery Motor vehicles Trade receivables Bad debts Provision for doubtful debts 1/8/2014 Sales Salaries Additional information: i. Inventory at July 31,2015 were valued as follows: Raw materials GH¢14,000 Work-in- progress GH¢20,000 Finished goods GH¢60,000 ii. Rent and rates and insurance are to be apportioned as follows: Factory Office 40% 20% Rent and rates 60% Insurance 80% iii. Depreciation is to provided for as follows: Plant and machinery (used in factory) 10% per annum on reducing balance basis and motor vehicles 20% using straight line method. iv. The doubtful debts provision is to be made equal to 5% of trade receivables. You are required to prepare the manufacturing, and income statements for the year ended July 31, 2015.
3. The following balances were extracted from the books of Flash Manufacturing Enterprises on July 31, 2015. GH¢ Inventory at August 1, 2014: Raw Materials Work-in-progress Finished goods 46,000 29,000 79,000 |149,000 11,000 22,000 33,000 17,000 11,000 6,000 12,000 14,000 18,200 80,000 100,000 40,000 8,000 16,000 Accumulated depreciation: plant and machinery 16,000 |300,000 20,000 Purchases of raw materials |Carriage on raw materials Rent and rates Factory wages Factory power Factory supervisor's salary Carriage outwards Selling expenses Insurance General expenses Plant and machinery Motor vehicles Trade receivables Bad debts Provision for doubtful debts 1/8/2014 Sales Salaries Additional information: i. Inventory at July 31,2015 were valued as follows: Raw materials GH¢14,000 Work-in- progress GH¢20,000 Finished goods GH¢60,000 ii. Rent and rates and insurance are to be apportioned as follows: Factory Office 40% 20% Rent and rates 60% Insurance 80% iii. Depreciation is to provided for as follows: Plant and machinery (used in factory) 10% per annum on reducing balance basis and motor vehicles 20% using straight line method. iv. The doubtful debts provision is to be made equal to 5% of trade receivables. You are required to prepare the manufacturing, and income statements for the year ended July 31, 2015.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:3. The following balances were extracted from the books of
Flash Manufacturing Enterprises on July 31, 2015.
GH¢
46,000
29,000|
79,000
149,000
11,000
22,000
33,000
17,000
11,000
6,000
12,000
14,000
18,200
80,000|
100,000
40,000
8,000
16,000|
Accumulated depreciation: plant and machinery 16,000|
300,000
20,000
Inventory at August 1, 2014: Raw Materials
Work-in-progress
Finished goods
Purchases of raw materials
|Carriage on raw materials
Rent and rates
Factory wages
Factory power
Factory supervisor's salary
|Carriage outwards
Selling expenses
Insurance
General expenses
Plant and machinery
Motor vehicles
Trade receivables
Bad debts
Provision for doubtful debts 1/8/2014
Sales
Salaries
Additional information:
i. Inventory at July 31,2015 were valued as follows:
Raw materials
GH¢14,000
Work-in- progress
GH¢20,000
Finished goods
GH¢60,000
ii. Rent and rates and insurance are to be apportioned as
follows:
Factory Office
40%
20%
Rent and rates 60%
Insurance
80%
iii. Depreciation is to provided for as follows:
Plant and machinery (used in factory) 10% per annum on
reducing balance basis and motor vehicles 20% using
straight line method.
iv. The doubtful debts provision is to be made equal to 5% of
trade receivables.
You are required to prepare the manufacturing, and income
statements for the year ended July 31, 2015.
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