Page 182 - DMGT104_FINANCIAL_ACCOUNTING

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( )
Stock on 1.1.2007: Particulars Amount Amount
Raw Materials: 8,000 ---
Work-in-Progress 20,000 ---
Finished Goods 40,000 ---
Manufacturing Wages 40,000 ---
Financial Accounting
Purchases of Raw Materials 1,20,000 ---
Factory Rent 20,000 ---
Carriage of Raw Materials 12,000 ---
Notes Salary of the Works Manager 8,000 ---
Office Rent 8,000 ---
Printing and Stationary 4,000 ---
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:
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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 Depreication 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 Amount Amount
( ) ( )
To Opening Stock: By Sales
Finished Goods By Closing Stock 2,40,000
To Cost of Production 40,000 Finished Goods
(Transfer from Manufacturing A/c) 2,00,000 40,000
To Gross Profit Contd...
(carried to P. & L. A/c)
40,000
2,80,000 By Gross Profit 2,80,000
176 LOVELY PROFESSIONAL UNIVERSITY
To Office Rent 8,000 (brought from Trading A/c)
To Printing & Stationary 4,000 40,000
To Bad Debts 4,000
To Net Profit (carried to Capital A/c)
24,000
40,000 40,000