Page 175 - DMGT104_FINANCIAL_ACCOUNTING

Unit 8: Financial Statements

Illustration 6: Manufacturing, Trading and Profit & Loss A/c Notes
From the following particulars of Mr. Amit Agrawal, prepare a Manufacturing Account, Trading
and Profit & Loss Account for the year ended 31st March, 2010.
( )
Purchase of Raw Material 39,58,500
Return Inwards 21,000
Stock on 31st March, 2008:
Raw Materials 3,63,000
Work-in-Progress 3,00,000
Finished Goods 4,11,000
Productive Wages 6,00,000
Factory Expenses 5,52,000
General Office Expenses 90,000
Salaries 1,80,000
Distribution Expenses 30,000
Selling Expenses 2,10,000
Purchase Expenses 1,80,000
Export Duty 90,000
Import Duty 60,000
Interest on Bank Loan 1,80,000
Stock on 1st April, 2007:
Raw Material 1,20,000
Work-in-Progress 90,000
Finished Goods 1,23,000
Sales 58,50,000
Return Outwards 25,500
Carriage Inwards 31,500
Discount allowed 3,000
Sale of Scrap 6,000
Depreciation on Plant 1,50,000
Depreciation on Furniture 12,000
Solution:
Manufacturing Account
(for the year ending 31st March, 2010)
Particulars ( ) Particulars ( )
To Opening Stock
Materials 1,20,000 By Sale of Scrap 6,000
Work-in-Progress 90,000 By Closing Stock:
To Purchase less Returns Materials 3,63,000
(39,58,500 - 25,500) 39,33,000 Work-in-Progress 3,00,000
To Productive Wages 6,00,000 By Cost of Production Contd.. .
To Factory Exps. 5,52,000 (Transferred to Trading A/c) 50,76,000
To Purchase Exps. 1,80,000
To Import Duty 60,000
LOVELY PROFESSIONAL UNIVERSITY 169
To Carriage Inwards 30,000
To Depreciation on Plant 1,50,000
To Repairs to Machines 30,000
57,45,000 57,45,000
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