Page 26 - DCOM302_MANAGEMENT_ACCOUNTING

Unit 2: Understanding Corporate Financial Statements

Printing and Stationary 4,000 --- Notes
Bad Debts 4,000 ---
Sales --- 2,40,000
Land and Buildings 1,20,000 ---
Plant and Machinery 80,000 ---
Depreciation on Plant 8,000 ---
Sundry Debtors 20,000 ---
Sundry Creditors --- 1,20,000
Cash in Hand 20,000 ---
Capital --- 1,72,000
5,32,000 5,32,000
Closing stock on 31st December, 2007 were as follows:
`

Raw Materials 20,000
Work-in-Progress 16,000
Finished Goods 40,000
Solution:

In the Books of Mr. Aditya Manufacturing Account
(for the year ended 31st December, 2007)

Particulars ` Particulars `
To Opening Stock: By Closing Stock:
To Raw Materials 8,000 By Raw Material 20,000
To Work-in-Progress 20,000 28,000 By Work-in-Progress 16,000 36,000
To Purchase of Materials 1,20,000 By Cost of Production
To Carriage on Raw Materials 12,000 (Transfer to Trading A/c.) 2,00,000
To Depreciation on Plant 8,000
To Manufacturing Wages 40,000
To Factory Rent 20,000
To Salary of Works Manager 8,000
2,36,000 2,36,000

Trading and Profit & Loss Account

(for the year ending 31st December, 2007)
Particulars ` `
To Opening Stock: By Sales 2,40,000
Finished Goods 40,000 By Closing Stock
To Cost of Production 2,00,000 Finished Goods 40,000
(Transfer from Manufacturing A/c)
To Gross Profi t
(carried to P& L A/c) 40,000
2,80,000 2,80,000

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