| 1.8 | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION | Unnamed: 6 | Unnamed: 7 |
|---|---|---|---|---|---|---|---|
| Ace Engineering PLC | |||||||
| Manufacturing Account for the year ended 31 March Year 8 | |||||||
| £OOO | £OOO | ||||||
| Raw Materials Cost | |||||||
| Opening Inventory | 400 | ||||||
| Add Purchases | 1820 | 1.0 | |||||
| Less Purchases Returns | 0 | 1820 | |||||
| 2220 | |||||||
| Add Carriage In | 44 | 1.0 | |||||
| 2264 | |||||||
| Less Closing Inventory | 300 | 1.0 | for both inventories | ||||
| COST OF RAW MATERIALS CONSUMED | 1964 | ||||||
| Add Direct Costs | |||||||
| Direct Factory Labour | 2800 | 1.0 | |||||
| 2800 | |||||||
| PRIME COST OF MANUACTURE | 4764 | ||||||
| Add Factory Overheads | |||||||
| Rates (450-10+20=460x60%) | 276 | 2.0 | |||||
| Indirect Labour | 1200 | ||||||
| Repairs to Machinery | 380 | 1.0 | for indirect labour and repairs to machinery | ||||
| Depn - Machinery (15%x6000) | 900 | 1.0 | |||||
| 2756 | |||||||
| 7520 | |||||||
| Add Inventory - Work in Progress at Start | 160 | ||||||
| 7680 | |||||||
| Less Inventory - Work in Progress at End | 70 | 1.0 | for both inventories | ||||
| FACTORY COST OF PRODUCTION | 7610 | ||||||
| Add profit on Manufacture | 890 | 1.0 | |||||
| WHOLESALE VALUE OF FINISHED GOODS | 8500 | 10 for Manufacturing | |||||
| Ace Engineering PLC | |||||||
| Income Statement for the year ended 31 March Year 8 | |||||||
| £OOO | £OOO | £OOO | |||||
| Sales Revenue | 10000 | 1.0 | |||||
| Less Sales Returns | 0 | ||||||
| Net Sales Revenue | 10000 | ||||||
| Less Cost of Sales | |||||||
| Opening Inventory - FG | 1080 | ||||||
| Add Wholesale Value of Finished Goods | 8500 | 1.0 | |||||
| 9580 | |||||||
| Add Purchases - FG | 100 | 1.0 | |||||
| Less Purchases Returns - FG | 0 | 100 | |||||
| 9680 | |||||||
| Add Carriage In - FG | 0 | ||||||
| 9680 | |||||||
| Add Warehouse Rates (450-10+20=460x10%) | 46 | 2.0 | |||||
| 9726 | |||||||
| Less Closing Inventory - FG | 960 | 1.0 | for both inventories | ||||
| COST OF SALES | 8766 | ||||||
| GROSS PROFIT | 1234 | ||||||
| Add Profit on Manufacture | 890 | 1.0 | |||||
| 2124 | |||||||
| Less Expenses | |||||||
| Rates (450-10+20=460x30%) | 138 | 2.0 | |||||
| Administration and Sales Salaries (860+40) | 900 | 1.0 | |||||
| Bad Debts | 86 | 1.0 | |||||
| Create BDP | 8 | 1.0 | |||||
| Depn - Office Equipment (1400-400=1000x20%) | 200 | 1.0 | |||||
| Debenture Interest (10%x1200) | 120 | 1.0 | |||||
| 1452 | |||||||
| 672 | |||||||
| Add Other Income | |||||||
| 0 | |||||||
| PROFIT FOR THE YEAR BEFORE TAX | 672 | ||||||
| Less Corporation Tax (25%x672) | 168 | 1.0 | |||||
| PROFIT FOR THE YEAR AFTER TAX | 504 | ||||||
| Add Unappropriated Profit | 240 | 1.0 | |||||
| 744 | |||||||
| Less | |||||||
| Preference Dividend | 80 | 1.0 | |||||
| Interim Ordinary Dividend | 60 | 1.0 | |||||
| Final Ordinary Dividend (0.06x3000) | 180 | 240 | 1.0 | ||||
| Transfer to General Reserve | 50 | 370 | 1.0 | ||||
| UNAPPROPRIATED PROFIT | 374 | 20 for Income Statement | |||||
| Ace Engineering PLC | |||||||
| Statement of Financial Position as at 31 March Year 8 | |||||||
| COST | DEPN | NBV | |||||
| £ | £ | £ | |||||
| Non-Current Assets | |||||||
| Factory Machinery (1420+900) | 6000 | 2320 | 3680 | 1.0 | |||
| Office Equipment (400+200) | 1400 | 600 | 800 | 1.0 | |||
| Intangible Assets: Preliminary Expenses (80-80) | 0 | ||||||
| 4480 | |||||||
| Current Assets | |||||||
| Closing Inventory - Raw Materials | 300 | ||||||
| Closing Inventory - Work in Progress | 70 | ||||||
| Closing Inventory - Finished Goods | 960 | 1330 | 2.0 | for all three correct | |||
| Cash and Cash Equivalents (310-180) | 130 | 1.0 | |||||
| Trade Receivables | 1140 | ||||||
| Less BDP | 8 | 1132 | 1.0 | ||||
| 2592 | |||||||
| Current Liabilities | |||||||
| Trade Payables | 240 | ||||||
| VAT | 280 | 1.0 | for TP and VAT | ||||
| Corporation Tax Payable | 168 | 1.0 | |||||
| Debenture Interest Payable | 120 | 1.0 | |||||
| Rates Payable | 20 | 828 | 1.0 | ||||
| WORKING EQUITY | 1764 | ||||||
| NET ASSETS EMPLOYED | 6244 | ||||||
| Non-Current Liabilities | |||||||
| 10% Debenture | 1200 | 1200 | 1.0 | ||||
| NET ASSETS | 5044 | ||||||
| Equity | |||||||
| Share Equity | |||||||
| 3,000,000 Ordinary Shares of £1 each | 3000 | ||||||
| 1,000,000 8% preference Shares of £1 each | 1000 | 4000 | 1.0 | for both | |||
| Reserves | |||||||
| Share Premium (200-80) | 120 | 1.0 | |||||
| General Reserve (500+50) | 550 | 1.0 | |||||
| Unappropriated Profit | 374 | 1044 | 1.0 | ||||
| 5044 | 15 for SfP |