TC Limited is a manufacturing company. The company's year end is 31 January. On 31 January 2021, the company's ledger account balances included the following. $ Inventory at 1 February 2020 Raw materials 7500 Work in progress 11220 Finished goods 925 Purchases Raw materials 91400 Finished goods 6850 Wages Factory operatives 52000 Factory supervisor 23100 Rent and rates 19620 Insurance 4600 General factory expenses 4200 Carriage inwards on raw materials 6280 Factory equipment at cost 90000 Provision for depreciation of factory equipment 30960 Additional information 1 Inventory at 31 January 2021 Raw materials 8000 Work in progress 11900 Finished goods 1075 2 The factory equipment is to be depreciated at 20% per annum using the reducing balance method. 3 In December 2020, $3600 was paid for rent for the period 1 December 2020 to 28 February 2021. 4 At 31 January 2021 rates of $550 were unpaid. 5 Rent and rates are to be apportioned equally between the factory and the office. 6 Insurance is to be apportioned 75% to the factory and 25% to the office. REQUIRED

1. (a)Prepare the rent and rates account for TC Limited for the year ended 31 January 2021. Balance the account and bring down the balances on 1 February 2021. TC Limited Rent and rates account Date Details $ Date Details $[5]
2. (b)Prepare the manufacturing account for TC Limited for the year ended 31 January 2021. TC Limited Manufacturing Account for the year ended 31 January 2021 $ $[10]
3. (c)Advise the directors whether or not they should charge depreciation on these items. Justify your answer by providing two advantages and two disadvantages.[5]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.