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

CA Foundation · Accounting · MTP · January 2026
Mr. Anthony runs a factory which produces wires. The following details were obtained about his manufacturing expenses for the year ended 31st March 2025: Amount (₹) Opening Work -in – Progress 65,62,500 Closing Work –in Progress 75,07,500 Opening Inventory of Raw material 61,42,500 Closing Inventory of Raw material 49,35,000 Purchases 1,96,77,000 Purchase Returns 9,97,500 Carriage Inward 28,35,000 Direct Wages 41,68,500 Construction of office cabins 17,50,000 Power & Electricity 18,48,000 Repairs and Maintenance 27,82,500 Depreciation on Factory Shed 15,12,000 Depreciation on Plant & Machinery 17,01,000 Sale of scrap 3,78,000 You are required to prepare Manufacturing Account for the year ended 31st March, 2025.

Suggested Answer and Working Notes:

In the Books of Mr. Anthony Manufacturing Account for the year ended on March 31, 2025 Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Opening W.I.P. 65,62,500 By Closing W-I-P 75,07,500 To Raw Material Consumed: By Sale of Scrap 3,78,000 Opening inventory 61,42,500 By Trading A/c - Cost of finished goods transferred 3,34,11,000 Purchases 1,96,77,000 Less: Returns (9,97,500) 2,48,22,000 Less: Closing inventory (49,35,000) 1,98,87,000 To Carriage Inwards 28,35,000 To Direct Wages 41,68,500 To Manufacturing Overhead: Power and Electricity 18,48,000 Repairs & Maintenance 27,82,500 Depreciation on Factory Shed 15,12,000 Depreciation on Plant & Machinery 17,01,000 78,43,500 4,12,96,500 4,12,96,500

Topics: Preparation of Final Accounts of Sole Proprietors

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