iii) Partnership balance sheet as at 31/12/2013 marks) QUESTION TWO a) Differentiate the following..
| iii) Partnership balance sheet as at 31/12/2013 marks)QUESTION TWO
a) Differentiate the following giving examples in each case |
(7 |
| i) Capital reserves | (2 marks ) |
| ii) Revenue reserves | (2 marks ) |
b) PKF manufacturers trial balance as at 31st Dec 1995 was as follows
| Capital |
15,000 |
|
| Drawings | 2,000 | |
| Opening stock at 1/1/95 – Raw Material | 3,400 | |
| – Working in progress | 5,000 | |
|
-Finished goods |
6,100 | |
| Purchases of raw material | 18,000 | |
| Carriage inwards of raw material | 800 | |
| Direct factory wages | 18,500 | |
| Office Salaries | 16,900 | |
| Salesmen salaries | 10,400 | |
| Sales finished goods |
90,000 |
|
| Office expenses | 1,950 | |
| Lighting | 2,500 | |
| Rent | 3,750 | |
| Insurance | 950 | |
| Advertising | 1400 | |
| Royalties | 650 | |
| Discount received |
1,600 |
|
| Carriage outwards | 375 | |
| Plant and machinery at cost | 9100 | |
| Sales and machinery at cost | 4,200 | |
| Bank | 3,600 | |
| Cash in hand
Provision for depreciation on plant &machinery |
325 | |
| at 1/1/97 |
100 |
|
| Debtors | 7700 | |
| Creditors |
10,900 |
|
| Total 117,600 | 117,600 | |
Additional information
1. Closing stock at 31st December 1995 -Raw materials shs 2900 -Work in progress shs 3000
-Finished goods shs 8200
2. Lighting and rent expenses are to be apportioned as follows: 4/5 factory, 1/5 Office
3. Insurance expenses is to apportioned as follows; ½ factory ½ office
4. Unpaid direct factory wages was sh 2000 as at 31/12/ 95
5. Prepaid office salaries were shs 900 as at 31/12/ 95
6. Depreciation is to be charged as follows
? Plant and machinery at 10% p.a using the reducing balance method ? Sales van at 5% p.a on cost.
Required
Prepare a manufacturing income statement as at 31/12/95 as well as a statement of financial position (16 marks )
