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Practice Question On Manufacturing Account-1

This document provides a trial balance for a partnership between Jack and Jane. It lists assets, expenses, revenue, and capital/current accounts for the partners. The summary is required to prepare manufacturing, trading, and profit/loss accounts, distribute income between the partners, and produce a statement of financial position as of December 31, 2016. Adjustments are needed for inventory values, personal expenses, salaries, and drawings.

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Alashe fawaz
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188 views3 pages

Practice Question On Manufacturing Account-1

This document provides a trial balance for a partnership between Jack and Jane. It lists assets, expenses, revenue, and capital/current accounts for the partners. The summary is required to prepare manufacturing, trading, and profit/loss accounts, distribute income between the partners, and produce a statement of financial position as of December 31, 2016. Adjustments are needed for inventory values, personal expenses, salaries, and drawings.

Uploaded by

Alashe fawaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Practice Question on Manufacturing Account

Jack and Jane have been in partnership sharing profits and losses equally. The partners agreed
that partners’ capital accounts and drawings were to attract interest. The trial balance of the
partnership as at 30 December 2016 is as follows:

  DR CR
  N N

As at (1/1/16) 153,225 -

Raw materials 125,000 -

Work in Process 151,250 -

Finished Goods 250,000 -

Revenue - 1,250,000

Purchases of raw materials 162,500 -

Carriage inwards on raw materials 62,500 -

Office Salaries & wages 249,813 -

Factory Salaries 112,500 -

Motor vehicles 323,488 -

Furniture & fittings 139,050 -

Motor vehicle expenses 42,975 -

Office Insurance 5,063 -

Factory insurance 3,750 -

Office expense 13,950 -

Factory expense 8,125 -

Rates 19,438 -

Office Lighting expense 10,738 -

Factory Light expense 6,250 -


Debtors & creditors
252,000 112,000

Bank 31,163 -

Drawings 77,625 -

Capital Account -  

Jack   200,000

Jane   200,000
Current Account    

Jack   150,000

Jane   288,400

2,200,400 2,200,400

The following have not been taken into consideration before preparing the trial balance.
(a) Finished Goods taken for personal use by Jack ₦25 000; and Jane ₦35,000.
(b) General expenses paid by Jane personally was ₦22,500
(c) Jack received ₦150,000 as salary from the partnership
(d) Cash drawings made were as follows:
Jack N9, 000; Jane ₦6,000
(e) Interest on any form of drawings is at 5%
(f) Interest on Capital account is charged at the rate of 5%
(g) The closing inventories of the company at the end of the year are as follows:
• Raw materials 140,720
• Work in progress (WIP) 86, 250
• Finished goods 143,650

You are Required to Prepare:


(a) Manufacturing Account
(b) Trading, Profit or Loss Account
(c) Statement of distribution of income
(d) The Partners Current Accounts
(3) The Statement of Financial Position as at 31/12/16

(20 Marks)

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