Reference no: EM132574835
The following is a trial balance of Bike Ltd, a manufacturing company as at 30th June 2005
Sh.000 Sh.000
Sales 4,434,000
Purchase of Raw materials 2,190,000
Carriage outwards 49,000
Wage and Salaries 1,458,000
Rates and Insurance 108,000
Sundry Expenses 365,000
Stocks 1st July 2004
Raw Materials 414,000
Finished goods 180,000
Vehicles Expense 144,000
Fixed assets at cost
Factory premises 1,200,000
Plant and Machinery 300,000
Motor Vehicles 72,000
Provision for depreciation 1st July 2004
Factory Premises 168,000
Plant and Machinery 108,000
Motor Vehicles 30,000
Debtors and Creditors 48,000 54,000
Bank overdraft 84,000
Retained Profits 1st July 2004 370,000
Ordinary shares 64,000 of ksh.20 each 1,280,000
6,528,000 6,528,000
Additional information
i). Stocks as at 30th June 2005
Raw Materials Ksh.504,000
Finished goods Ksh.222,000
ii) Provision for depreciation is to be made on a straight line basis as follows;Factory premises and machinery 10%p.a, Motor vehicles 25% p.a.
iii) Salaries and wages includes the directors remuneration of Ksh.216,000.
iv) All the other expenses except carriage outwards are apportioned to the manufacturing and profit and loss account in the ratio of 2:1 respectively.
Required
Question a. The manufacturing, trading and profit and loss accounts for the year ended 30th June 2005
Question b. The Statement of Financial Position as at 30th June 2005