Question

PROBLEMS Q1. Manufacturing sole trader. Kimeu retired from Jambo Plastics in February 2009 and started his own business on 30 April 2009. His enterprise, known as Kimeu Plastics manufactures one product which it sells to the

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Answer 1

Manufacturing Account In The Books of Kimeu Plastics

To Opening Stock of RM 350,000 By Closing Raw Material 500,000

To Raw Material Purchase 3,950,000 By Closing WIP 100,000

To Manufacturing Wages 3,000,000 By Trading Accout (balancing Fig.) 12,000,000

To Factory Rent 1,400,000   

To Factory Light 655,000

To Work Manager Salary 245,000

To Plant Repair 400,000

To Opening WIP 1,800,000

To Depriciation (Plant) 600,000

To Factory Lease 200,000   

12,600,000 12,600,000

Income Statement for the year ended 30 April 2010 Opening Fininshed Goods Manufacturing Account 3,500,000 12,000,000 Sales Closing Stock 18,000,000 200,000 Administrative Overhead Carriage Inward 1,800,000 200,000 Gross Profit 700,000 18,200,000 18,200,000

Statement of Financial Position as at 30 April 2010 Liabilities Assets Plant Capital Profit 7,500,000 700,000 2600000 2600000 Factory Lease Accounts Payable 2,450,000 Finished Goods Account Receivable Bank Balance 800000 3,050,000 1,600,000 10,650,000 10,650,000