| 1.79 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| North PLC | |||||
| Manufacturing Account for the year ended 31 March Year 6 | |||||
| £OOO | £OOO | ||||
| Raw Materials Cost | |||||
| Opening Inventory | 48 | ||||
| Add Purchases | 280 | ||||
| Less Purchases Returns | 0 | 280 | |||
| 328 | |||||
| Add Carriage In | 0 | ||||
| 328 | |||||
| Less Closing Inventory | 40 | ||||
| COST OF RAW MATERIALS CONSUMED | 288 | ||||
| Add Direct Costs | |||||
| Direct Wages and Salaries (70%x400) | 280 | ||||
| Royalties (160+20) | 180 | 460 | |||
| PRIME COST OF MANUACTURE | 748 | ||||
| Add Factory Overheads | |||||
| Indirect Wages and Salaries (10%x400) | 40 | ||||
| Indirect Expenses | 140 | ||||
| Rent (72+8=80x3/4) | 60 | ||||
| Insurance (100-10=90x4/5) | 72 | ||||
| Depn - Machinery (10%x700) | 70 | ||||
| 382 | |||||
| 1130 | |||||
| Add Inventory - Work in Progress at Start | 22 | ||||
| 1152 | |||||
| Less Inventory - Work in Progress at End | 32 | ||||
| FACTORY COST OF PRODUCTION | 1120 | ||||
| Less Loss on Manufacture | -120 | ||||
| WHOLESALE VALUE OF FINISHED GOODS | 1000 | ||||
| North PLC | |||||
| Income Statement for the year ended 31 March Year 6 | |||||
| £OOO | £OOO | £OOO | |||
| Sales Revenue | 1680 | ||||
| Less Sales Returns | 0 | ||||
| Net Sales Revenue | 1680 | ||||
| Less Cost of Sales | |||||
| Opening Inventory - FG | 84 | ||||
| Add Wholesale Value of Finished Goods | 1000 | ||||
| 1084 | |||||
| Add Purchases - FG | 0 | ||||
| Less Purchases Returns - FG | 0 | 0 | |||
| 1084 | |||||
| Add Carriage In - FG | 0 | ||||
| 1084 | |||||
| Add Warehouse Wages and Salaries (5%x400) | 20 | ||||
| 1104 | |||||
| Less Closing Inventory - FG | 68 | ||||
| COST OF SALES | 1036 | ||||
| GROSS PROFIT | 644 | ||||
| Less Loss on Manufacture | -120 | ||||
| 524 | |||||
| Less Expenses | |||||
| Office and Sales Wages and Salaries (15%x400) | 60 | ||||
| Bad Debts | 8 | ||||
| Rent (72+8=80x1/4) | 20 | ||||
| Insurance (100-10=90x1/5) | 18 | ||||
| Office and Selling Expenses (140-6) | 134 | ||||
| Debenture Interest | 16 | ||||
| Depn - Vehicles (200-40=160x20%) | 32 | 288 | |||
| 236 | |||||
| Add Other Income | |||||
| Decrease in BDP (10-6) | 4 | ||||
| 4 | |||||
| PROFIT FOR THE YEAR BEFORE TAX | 240 | ||||
| Less Corporation Tax (25%x240) | 60 | ||||
| PROFIT FOR THE YEAR AFTER TAX | 180 | ||||
| Add Unappropriated Profit | 8 | ||||
| 188 | |||||
| Less | |||||
| Dividend on Ordinary Shares (15%x400) | 60 | 60 | |||
| UNAPPROPRIATED PROFIT | 128 | ||||
| North PLC | |||||
| Statement of Financial Position as at 31 March Year 6 | |||||
| COST | DEPN | NBV | |||
| £ | £ | £ | |||
| Non-Current Assets | |||||
| Factory Machinery (100+70) | 700 | 170 | 530 | ||
| Delivery Vehicles (40+32) | 200 | 72 | 128 | ||
| Intangible Assets: Goodwill | 0 | ||||
| 658 | |||||
| Current Assets | |||||
| Closing Inventory - Raw Materials | 40 | ||||
| Closing Inventory - Work in Progress | 32 | ||||
| Closing Inventory - Finished Goods | 68 | 140 | |||
| Cash and Cash Equivalents (92-60) | 32 | ||||
| Trade Receivables | 120 | ||||
| Less BDP | 6 | 114 | |||
| Insurance Receivable | 10 | ||||
| 296 | |||||
| Current Liabilities | |||||
| Trade Payables | 140 | ||||
| VAT | 58 | ||||
| Corporation Tax Payable | 60 | ||||
| Rent Payable | 8 | 266 | |||
| WORKING EQUITY | 30 | ||||
| NET ASSETS EMPLOYED | 688 | ||||
| Non-Current Liabilities | |||||
| 10% Debenture | 160 | 160 | |||
| NET ASSETS | 528 | ||||
| Equity | |||||
| Share Equity | |||||
| 400,000 Ordinary Shares of £1 each | 400 | 400 | |||
| Reserves | |||||
| Unappropriated Profit | 128 | 128 | |||
| 528 |