Mr. Sahil runs a factory which produces sugar. Following details are available in respect of his manufacturing activities for the year ended on 31…

CA Foundation · Accounting · PYQS · September 2025
Mr. Sahil runs a factory which produces sugar. Following details are available in respect of his manufacturing activities for the year ended on 31 st March, 2025: (₹) Opening Work in Progress (15tones) 4,50,000 Closing Work in Progress (12tones) 3,60,000 Raw Materials consumed 32,00,000 Closing inventory of Raw Materials 7,60,000 Hire charges of machine @200 per ton produced Direct Wages – Contracted @400 per ton manufacture and @200 per ton of closing WIP Factory Rent 2,40,000 Repairs & Maintenance of plant 1,50,000 Sugar produced -500 tones Sale of Scrap 84,000 Prepare the Manufacturing Account of Mr. Sahil for the year ended on 31 st March, 2025.

Suggested Answer and Working Notes:

In the Books of Mr. Sahil Manufacturing Account for the year ended 31 st March, 2025 Particulars Tonnes Amount (₹) Particulars Tonnes Amount (₹) To Opening Work-in-Process 15 4,50,000 By Closing Work-in-Process 12 3,60,000 To Raw Materials Consumed: 32,00,000 By Sale of Scrap 84,000 To Direct Wages – W.N. (1) 2,02,400 By Trading A/c – Cost of finished goods transferred 500 38,98,400 To Hire charges on Machinery (500 units @200) 1,00,000 To Indirect expenses: Factory rent 2,40,000 Repairs and Maintenance of Plant 1,50,000 43,42,400 43,42,400 Working Notes: (1) Direct Wages 500 units @400 = 2,00,000 12 units @200 = 2,400 Total = 2,02,400

Topics: Preparation of Final Accounts of Sole Proprietors

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