1.The following balances were extracted from the records of Mambwe Farms as at 31
March 2018.
Accounts
Balances
Inventory as at 1 April 2017
11,423
Sales
98,787
Purchases
79,121
Heating and lighting
893
Wages
7,121
Distribution costs
2,321
Machine repairs
989
Discounts allowed
864
Machinery
25,400
Vehicles
9,250
Provision for doubtful debts
280
Bad debts
187
Trade receivables
6,000
Trade payables
5,402
Bank
1,400
Loan (repayable in 2022)
10,000
Capital
39,000
Drawings
8,500
Prepare the trial balance and determine total debits or credits.
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2. Determine the Net Sales
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3. Calculate the cost of production
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4. Calculate gross profit
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5. Determine Heating and Lightening cost
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6. Determine total wages paid
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7. Determine total distribution cost
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8. Determine total machinery repair costs
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9. Determine total overhead expenses
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10. Calculate net profit
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11. Calculate the value of account receivables
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12. Calculate total current assets
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13. Calculate the value of fixed assets
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14. Calculate the total value of current liabilities
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15. Calculate the total value of non-current liabilities
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16. Calculate equity (Capital) at the end of the financial year
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