acc 102 Assignment Questions and Answers
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Mallam Abacha Kura
ANSWERS
a) Manufacturing Account
For the year ended 31 December 2001
| Dr. | ₦ | Cr. | ₦ |
| Opening Stock of Raw Materials | 213,800 | ||
| Add: Purchases of Raw Materials | 1,000,650 | ||
| Add: Carriage Inwards | 10,200 | ||
| 1,224,650 | |||
| Less: Closing Stock of Raw Materials | (180,300) | ||
| Less: Raw Materials used personally | (3,455) | ||
| 1,040,895 | |||
| Raw Materials Consumed | 1,040,895 | ||
| Add: Factory Salaries & Wages | 135,680 | ||
| Add: Factory Power (from Electricity) | 19,800 | ||
| Add: Factory Insurance | 2,600 | ||
| Add: Depreciation on Plant & Machinery (5% of 40,500) | 2,025 | ||
| Total Cost of Production | 1,200,000 |
- Raw Materials Consumed:
Opening ₦213,800 + Purchases ₦1,000,650 + Carriage ₦10,200 – Closing ₦180,300 – Personal use ₦3,455 = ₦1,040,895 - Prime Factory Costs (materials + wages + power + insurance + depreciation) = ₦1,200,000
Mallam Abacha Kura
i) Trading Account
For the year ended 31 December 2001
| Dr. | ₦ | Cr. | ₦ |
| Opening Stock of Finished Goods | 91,080 | Sales | 1,525,600 |
| Cost of Production (from Manufacturing A/C) | 1,200,000 | Closing Stock of Finished Goods | 96,080 |
| Finished Goods Drawn for Personal Use | 5,000 | ||
| Gross Profit c/d | 335,600 | ||
| 1,626,680 | 1,626,680 |
Mallam Abacha Kura
ii) Profit & Loss Account
for the year ended 31 December 2001
| Dr. (Expenses & Losses) | ₦ | Cr. (Income & Gains) | ₦ |
| Office Salaries (25,720 + 2,500) | 28,220 | Gross Profit b/d | 335,600 |
| Office Rent (12,200 + 1,100 – 2,400) | 10,900 | Discounts Received | 4,560 |
| Printing & Stationery (3,600 – 380) | 3,220 | Interest on Investments | 7,250 |
| Postage & Telegram (2,050 – 580) | 1,470 | ||
| Advertisements (102,250 + 900) | 103,150 | ||
| Sundry Expenses (2,200 + 500) | 2,700 | ||
| Discount Allowed | 1,520 | ||
| Carriage Outwards | 70,730 | ||
| Insurance | 2,400 | ||
| Depreciation on Furniture (10% of 10,500) | 1,050 | ||
| Depreciation on Buildings (2½% of 145,000) | 3,625 | ||
| Bad Debts Written Off | 2,000 | ||
| Increase in Prov’n for Doubtful Debts (1,675–600) | 1,075 | ||
| Total | 347,410 | ||
| Total | 232,060 | Net Profit c/d | 115,350 |
| (brought down) | 115,350 | ||
| Total | 347,410 | Total | 347,410 |
Appropriation of Net Profit ₦115,350
| Dr. | ₦ | Cr. | ₦ |
| Transfer to General Reserve | 80,000 | Net Profit b/d | 115,350 |
| Net Profit transferred to Capital A/C | 35,350 | ||
| Total | 115,350 | Total | 115,350 |
Mallam Abacha Kura
b) Balance Sheet
As at 31 December 2001
| Liabilities | ₦ | Assets | ₦ |
| Capital (225,000 + 35,350 – 24,000) | 236,350 | Fixed Assets: | |
| General Reserve | 300,000 | Factory Buildings (145,000 – 3,625) | 141,375 |
| Sundry Creditors | 23,840 | Plant & Machinery (40,500 – 2,025) | 38,475 |
| Outstanding Office Salaries | 2,500 | Furniture & Fixtures (10,500 – 1,050) | 9,450 |
| Outstanding Office Rent | 1,100 | Current Assets: | |
| Outstanding Advertisements | 900 | Closing Stock – Finished Goods | 96,080 |
| Outstanding Sundry Expenses | 500 | Closing Stock – Raw Materials | 180,300 |
| Sundry Debtors (35,500 – 600) | 34,900 | ||
| Investments (4% loan) | 20,000 | ||
| Cash at Bank | 7,250 | ||
| Cash in Hand | 70,730 | ||
| Total Liabilities & Equity | 565,190 | Total Assets | 565,190 |
Gross Profit (at market price) = ₦ 271,625
