Following are the Manufacturing A/c, Creditors A/c and Raw Material A/c provided by M/s. Anil related to financial year 2024-25. There are certain…

Manufacturing A/c Particulars ₹ Particulars ₹ To Raw Material Consumed (Balancing Figure) 27,45,000 By Trading A/c (W.N.4) 54,96,000 To Wages (W.N.2) 9,45,000 To Depreciation (W.N.1) 11,85,000 To Direct Expenses (W.N.3) 6,21,000 54,96,000 54,96,000 Raw Material A/c Particulars ₹ Particulars ₹ To Opening Stock A/c 3,81,000 By Raw Material Consumed (from Manufacturing A/c above) 27,45,000 To Creditors A/c (W.N.5) 43,20,000 By Closing Stock A/c (Balancing Figure) 19,56,000 47,01,000 47,01,000 Working Notes: (1) Since purchase of Machinery worth - 36,00,000 has been omitted. So, depreciation omitted from being charged = 36,00,000 X 15% = 5,40,000 Correct total depreciation expense = ₹ (₹ 6,45,000+5,40,000) = 11,85,000 (2) Wages worth - 1,50,000 will be excluded from manufacturing account as they pertain to office and hence will be charged P&L A/c. So the revised wages amounting - 9,45,000 will be shown in manufacturing account. (3) Expenses to be excluded from direct expenses: Particulars ₹ Office Electricity Charges (₹ 2,40,000 X 25%) 60,000 Delivery Charges to Customers 66,000 Total expenses not part of Direct Expenses 1,26,000 => Revised Direct Expenses = ₹ (₹ 7,47,000 - 1,26,000) = 6,21,000 Fuel charges are related to factory expenses and also freight inwards are incurred for bringing goods to factory/ godown so they are part of direct expenses. (4) Revised Balance to be transferred to Trading A/c: Particulars ₹ Current Balance transferred 52,32,000 Add: Depreciation charges not recorded earlier 5,40,000 Less: Wages related to Office -1,50,000 Less: Office Expenses -1,26,000 Revised balance to be transferred 54,96,000 (5) Creditors A/c Particulars ₹ Particulars ₹ To Bank A/c 70,50,000 By Balance b/d 47,10,000 To Balance c/d 19,80,000 By Raw Materials A/c (Bal. figure) 43,20,000 90,30,000 90,30,000