Factory Ledger And General Ledger

Office book ( General Ledger)

Factory Book ( Factory Ledger)

Recording in the books of Factory

1. Material
2. Labour
3. Factory overheads
4. Work in process
5. Finished goods

1. Purchased material on account 50,000

Material inventory Dr 50,000
Accounts Payable Cr 50,000
2. Materia issued to factory Rs. 30,000 including Rs. 5,000 indirect materials
Work in process Dr 25,000
Factory overheads Dr 5,000
Material inventory Cr 30,000

3. Direct Labour used Rs. 40,000 and indirect labour used Rs. 10,000
Work in process Dr 40,000
Factory overhead Dr 10,000
Accrued Payroll Cr 50,000

4. Paid to labour Rs. 30,000

Accrued Payroll Dr 30,000
Cash/Bank Cr 30,000

5. Factory overheads is applied 80% of direct labour cost.

40,000 X 80% = 32,000
Work in process Dr 32,000
Factory overheads Cr 32,000

6. Other manufacturing overheads incurred Rs. 15,000

Factory overheads Dr 15,000
Accounts Payable Cr 15,000
7. Depreciation on factory machinery Rs. 8,000
Factory overheads Dr 8,000
Allowance for depreciation Cr 8,000

8. Goods costing Rs. 80,000 were completed and transferred to finished goods warehouse.
Finished Goods Dr 80,000
Work in process Cr 80,000

9. Goods costing Rs. 70,000 were sold for Rs 150,000 on account.

Cost of goods sold Dr 70,000
Finished goods Cr 70,000
 Factory Ledger General Ledger
1. Material inventory Dr 50,000 1. Factory Ledger Dr 50,000
General Ledger Cr 50,000 Accounts Payable Cr 50,000

2. Work in process Dr 25,000 2. No entry required

Factory overheads Dr 5,000
Material inventory Cr 30,000

3. Work in process Dr 40,000 3. Factory ledger Dr 50,000

Factory overheads Dr 10,000 Accrued Payroll Cr 50,000
General Ledger Cr 50,000
4. Accrued payroll Dr 30,000
4. No entry required Cash/Bank Cr 30,000

5. Work in process Dr 32,000 5. No entry required

Factory overheads Cr 32,000

6. Factory overheads Dr 15,000 6. Factory Ledger Dr 15,000

General ledger Cr 15,000 Accounts Payable Cr 15,000

7. Factory overheads Dr 8,000 7. Factory Ledger Dr 8,000

General Ledger Cr 8,000 Allowance for depreciation Cr 8,000

8. Finished goods Dr 80,000 8. No entry required

Work in process Cr 80,000

9. General ledger Dr 70,000 9.(a) Cost of goods Sold Dr 70,000

Finished goods Cr 70,000 Factory ledger Cr 70,000
(b) Accounts Receivable Dr 150,000
Sales Cr 150,000
 Factory Ledger General Ledger
1. Material inventory Dr 136,500 1. Factory ledger Dr 136,500
General ledger Cr 136,500 Accounts Payable Cr 136,500

2. Work in process Dr 72,160 3. Factory ledger Dr 100,000

Factory overheads Dr 10,000 Accrued payroll Cr 100,000
Material inventory Cr 82,160
4. Accrued payroll Dr 100,000
3. Work in process Dr 80,000 Cash Cr 100,000
Factory overheads Dr 20,000
General Ledger Cr 100,000 6. Factory Ledger Dr 54,000
Accounts Payable Cr 54,000
5. work in process Dr 64,000
Factory overheads Cr 64,000

6. Factory overheads Dr 54,000

General Ledger Cr 54,000

7. Finished Goods Dr 180,000

Work in process Cr 180,000
8. General ledger Dr 160,000 8. Accounts Receivable Dr 224,000
Finished Goods Cr 160,000 Sales Cr 224,000
Cost of goods sold Dr 160,000
Factory ledger Cr 160,000
Sales = 160,000 X 140% = 224,000

Factory Ledger General Ledger

1. Material inventory Dr 30,000 1. Factory ledger Dr 30,000
General Ledger Cr 30,000 Accounts Payable Cr 30,000

2. work in process Dr 6,000 3. Factory ledger Dr 3,000

Factory overheads Dr 3,000 EOBI Cr 300
Material inventory Cr 9,000 Social security Cr 200
Accrued payroll Cr 2,500
3. Work in process Dr 2700 3. Accrued payroll Dr 2500
Factory overheads Dr 300 Cash Cr 2500
General ledger Cr 3,000

4. Factory overheads Dr 300 4. Factory ledger Dr 300

General Ledger Cr 300 Allowance for depreciation Cr 300

5. Factory overheads Dr 1200 5. Factory ledger Dr 1200

General Ledger Cr 1200 Accounts Payable Cr 1200
5. Accounts payable Dr 1200
6. Finished Goods Dr 2000 Cash Cr 1200
Work in process Cr 2000
7. General ledger Dr 2000 Accounts Receivable Dr 3500
Finished Goods Cr 2000 Sales Cr 3500
Cost of goods sold Dr 2000
Factory ledger Cr 2000
 Factory Ledger
1. Material inventory Dr 200,000
General Ledger Cr 200,000
2. Work in process Dr 120,000
Factory overheads Dr 30,000
Material inventory Cr 150,000
3. Work in process Dr 200,000
Factory Overheads Dr 40,000
General Ledger Cr 240,000
3. Factory overheads Dr 12,000
General Ledger Cr 12,000
4. Factory overheads Dr 200,000
General Ledger Cr 200,000
5. Work in process Dr 220,000
Factory overheads Cr 220,000
6. Finished goods Dr 600,000
Work in process Cr 600,000
7. General Ledger Dr 500,000
Finished goods Cr 500,000
General Ledger
1. Factory Ledger Dr 200,000
Accounts Payable Cr 200,000
3. Factory Ledger Dr 240,000
Provident fund (5%) Cr 12,000
Income Tax (10%) Cr 24,000
Accrued Payroll Cr 204,000
( To record factory payroll)
3. Factory ledger Dr 12,000
Provident fund Cr 12,000
( To record employer contribution of PF)
4. Factory ledger Dr 200,000
Prepaid insurance Cr 70,000
Allowance for depreciation Cr 80,000
Accounts Payable Cr 50,000
7. Accounts Receivable Dr 700,000
Sales Cr 700,000
7. Cost of goods sold Dr 500,000
Factory Ledger Cr 500,000
 Factory Ledger
11. Material inventory Dr 50,000
General Ledger Cr 50,000
12. work in process Dr 38,000
Factory overheads Dr 8,000
Material inventory Cr 46,000
13. Work in process Dr 80,000
Factory overheads Dr 20,000
General Ledger Cr 100,000
14. Factory overheads Dr 4,000
General Ledger Cr 4,000
15. Factory overheads Dr 10,000
General Ledger Cr 10,000
16. Factory overheads Dr 20,000
General Ledger Cr 20,000
17. Work in process Dr 88,000
Factory overheads Cr 88,000
18. Finished Goods Dr 130,000
Work in process Cr 130,000
19. General Ledger Dr 110,000
Finished Goods Cr 110,000
20. Finished Goods Dr 5,000
General Ledger Cr 5,000
General Ledger
11. Factory Ledger Dr 50,000
Accounts Payable Cr 50,000
13. Factory Ledger Dr 100,000
Accrued Payroll Cr 100,000’
13. Accrued payroll Dr 100,000
Cash Cr 100,000
14. Factory Ledger Dr 4,000
Prepaid Factory Insurance Cr 4,000
15. Factory Ledger Dr 10,000
Allowance for Dep- Factory Cr 10,000
16. Factory Ledger Dr 20,000
Accounts Payable Cr 20,000
19. Accounts Receivable Dr 154,000
Sales Cr 154,000
19. Cost of goods sold Dr 110,000
Factory Ledger Cr 110,000
20. Sales return Dr 7,000
Accounts Receivable Cr 7,000
20. Factory Ledger Dr 5,000
Cost of goods sold Cr 5,000
Factory Payroll 6,000
Direct Labour = 3,650
Indirect Labour = 2,350
FL
Work in process Dr 3,650
Factory overheads Dr 2,350
General Ledger Cr 6,000
GL
Factory Ledger Dr 6,000
Excise duty Cr 105
Income Tax Cr 245
Accrued Payaroll Cr 5,650

Accrued Payrol Dr 5650

Cash Cr 5650