Mr. Sanjay runs a factory which produces tyres. The following details were obtained about his manufacturing expenses for the year ended 31st March,…

CA Foundation · Accounting · MTP · January 2025
Mr. Sanjay runs a factory which produces tyres. The following details were obtained about his manufacturing expenses for the year ended 31st March, 2024: Amount (₹) Opening Work-in – Progress 18,75,000 Closing Work–in Progress 21,45,000 Opening Inventory of Raw material 17,55,000 Closing Inventory of Raw material 14,10,000 Purchases 56,22,000 Purchase Returns 2,85,000 Carriage Inward 8,10,000 Direct Wages 11,91,000 Power & Electricity 5,28,000 Repairs and Maintenance 7,95,000 Depreciation on Factory Shed 4,32,000 Depreciation on Plant & Machinery 4,86,000 Sale of scrap 1,08,000 You are required to prepare Manufacturing Account for the year ended 31st March, 2024.

Suggested Answer and Working Notes:

In the Books of Mr. Sanjay Manufacturing Account for the year ended on March, 31,2024 Particulars ₹ Amount ₹ Particulars Amount ₹ To Opening W.I.P. 18,75,000 By Closing W-I-P 21,45,000 To Raw Material Consumed: By Sale of Scrap 1,08,000 Opening inventory 17,55,000 By Trading A/c - Cost of finished goods transferred 95,46,000 Purchases 56,22,000 Less: Returns (₹ 2,85,000) 73,77,000 Less: Closing inventory (₹ 14,10,000) 56,82,000 To Carriage Inwards 8,10,000 To Direct Wages 11,91,000 To Manufacturing Overhead: Power and Electricity 5,28,000 Repairs & Maintenance 7,95,000 Depreciation on Factory Shed 4,32,000 Depreciation on Plant & Machinery 4,86,000 22,41,000 1,17,99,000 1,17,99,000

Topics: Preparation of Final Accounts of Sole Proprietors

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