Following are the Manufacturing A/c, Creditors A/c and Raw Material A/c provided by M/s. Anil related to financial year 2025-26. There are certain…

Manufacturing A/c Particulars ₹ Particulars ₹ To Raw Material Consumed (Balancing Figure) 9,15,000 By Trading A/c (W.N. 4) 18,32,000 To Wages (W.N. 2) 3,15,000 To Depreciation (W.N. 1) 3,95,000 To Direct Expenses (W.N. 3) 2,07,000 18,32,000 18,32,000 Raw Material A/c Particulars ₹ Particulars ₹ To Opening Stock A/c 1,27,000 By Raw Material Consumed (from Manufacturing A/c above) 9,15,000 To Creditors A/c (W.N. 5) 14,40,000 By Closing Stock A/c (Balancing Figure) 6,52,000 15,67,000 15,67,000 Working Notes: (1) Since purchase of Machinery worth ₹ 12,00,000 has been omitted. So, depreciation omitted from being charged = 12,00,000 X 15% = ₹ 1,80,000 Correct total depreciation expense = ₹ (2,15,000 + 1,80,000) = 3,95,000 (2) Wages worth ₹ 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 ₹ 3,15,000 will be shown in manufacturing account. (3) Expenses to be excluded from direct expenses: Office Electricity Charges (80,000 X 25%) 20,000 Delivery Charges to Customers 22,000 Total expenses not part of Direct Expenses 42,000 => Revised Direct Expenses = ₹ (2,49,000 - 42,000) = ₹ 2,07,000 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 17,44,000 Add: Depreciation charges not recorded earlier 1,80,000 Less: Wages related to Office (50,000) Less: Office Expenses (42,000) Revised balance to be transferred 18,32,000 (5) Creditors A/c Particulars ₹ Particulars ₹ To Bank A/c 23,50,000 By Balance b/d 15,70,000 To Balance c/d 6,60,000 By Raw Materials A/c (Bal. figure) 14,40,000 30,10,000 30,10,000