Leaving Cert Accounting FINAL ACCOUNTS - Manufacturing: Company Final Accounts including

Question

Company Final Accounts including a Manufacturing Account

Marijam Ltd. has an Authorised Capital of £1,800,000 divided into 1,000,000 Ordinary Shares at £1 each and 300,000 10% Preference Shares at £1 each. The following Trial Balance was extracted from its books at 31/12/2012:

€

Factory Buildings (cost £880,000) .......................................... 820,000
Plant and Machinery (cost £870,000) ...................................... 180,000
(Desk) ............................................................................. 8,400
Profit and Loss Balance 1/1/2012 ........................................... 60,000
Finished Goods ............................................................. 69,600
Raw Materials ................................................................ 44,300
Work in Progress .................................................................. 23,400
Debenture interest for the first three months ........................ 4% Investments ............................................................... 11,200
Patents ................................................................................ 22,600
Purchases of raw materials ......................................... 1,035,000
Sales ............................................................................... 1,540,000
Dividends paid ................................................................... 50,000
Debtors and Creditors ...................................................... 162,092 98,200
Bank .......................................................................................... 9% Debentures ............................................................ 99,000
Universal Social Charge ................................................... 6,300
Issued Share Capital – Ordinary Shares ....................................... 10% Preference Shares .......................................... 500,000

Direct factory wages ............................................................. 180,000
General factory overheads ................................................... 28,400
Hire of special equipment ...................................................... 6,100
Sale of scrap materials ......................................................... 4,600
Carriage on raw materials .................................................. 1,300
Administration expenses (including Suspense) .................. 32,900
Selling expenses (incorporating 3 months income) ........ 32,900

The following information and instructions are to be taken into account:

(i) Stocks on hand at 31/12/2012: Finished goods ...................... €79,400
Raw materials .................................................................. 753,600

(ii) The finished goods figure includes stock which cost €44,000 but has not yet been sold and is therefore treated as a credit sale. The finished goods consist of the Dec 31 stock as well as the sales realized to date.

(iii) An amount of €8,000 was spent on repairs to plant and machinery. An amount of €1,200 was received as a credit on the same.

(iv) The entries in the bank share register as at 31/12/2012 should be updated from the date of purchase to correspond with the present date which means that the total available cash is recorded as €6,800.

(v) The balance sheet should include 'Debtor' information as at the date 31/12/2012 and identify individuals and amounts owed.

(vi) An allowance for capital to be created equal to 40% of debtors.

You are required to:
(a) Manufacturing Trading and Profit and Loss Account for the year ended 31/12/2012.
(b) Balance Sheet as at 31/12/2012.

Company Final Accounts including a Manufacturing Account Marijam Ltd - Leaving Cert Accounting - Question 1 - 2013

Worked Solution & Example Answer:Company Final Accounts including a Manufacturing Account Marijam Ltd - Leaving Cert Accounting - Question 1 - 2013

Stock on hand at 31/12/2012: Finished goods

Raw Materials

Finished Goods Figure

Repairs to Plant and Machinery

Bank Adjustments

Debtors Information

Allowance for Capital

Manufacturing Trading Account

Profit and Loss Account

Balance Sheet

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