Prepare Manufacturing, Trading and Profit and Loss Account for the year ended 31st December, 2014 and Balance Sheet as at that date of Shri S. Singh, manufacturer, from the following Trial Balance and information:
1. Stock at 31st December, 2014 was : Raw materials ~ 7,120; W.I.P. ~ 3,480; Finished goods ~ 19,300; Packing materials ~ 250.
2. The following liabilities are to be provided for : Factory power ~ 1,124; Rent and rates ~ 772; Light and heat ~ 320; General expenses : Factory ~ 50; Office ~ 80.
3. Prepaid Insurance ~ 340.
4. Increase bad debt provision by ~ 1,000.
5. Provide depreciation at 10% p.a on Plant and Machinery and 5% p.a. on furniture.
6. 5/6th of Rent and rates, Light and heat, and Insurance are to be allotted to the factory and 1/6th to the office.
Cost Statement / Cost Sheet