Akash and Alap are partner of a firm sharing profit and in the ratio o

1.	Akash and Alap are partner of a firm sharing profit and in the ratio of 2 : 3. Trial balance of the firm as on 31-3-2018 was as follows :Adjustment:(1) Closing stock is of ₹ 80,000, Market value of this stock is ₹ 75,000 (2) Goods of ₹ 5,000 purchased on credit by mistake it was recorded as credit sales (3) Alap brought personal furniture of ₹ 10,000 on 1-10-2017 in the business, which was not recorded in the books of accounts. (4) Write of ₹ 10,000 as bad debts from debtors. Alap provide 10% for bad debts reserve and 2% for discount reserve on debtors. (5) Provide depreciation at 10% p.a. on furniture (6) Calculate interest on capital at 10% p.a. in excess of drawings amount (Capital-drawings = New capital)Prepare final accounts from the above information for the partnership firm.
Answer» Gross profit = ₹ 2,04,000; Net profit = ₹ 1,34,190 divisible profit = ₹ 1,14,190; Out of which for Akash = ₹ 45,676 and For Alap = ₹ 68,514; Closing balance of capital : Akash = ₹ 1,39,179; Alap = ₹ 2,00,014; Total of balance sheet = ₹ 3,89,190; Depreciation on furniture = ₹ 4,500

Akash and Alap are partner of a firm sharing profit and in the ratio of 2 : 3. Trial balance of the firm as on 31-3-2018 was as follows :Adjustment:(1) Closing stock is of ₹ 80,000, Market value of this stock is ₹ 75,000 (2) Goods of ₹ 5,000 purchased on credit by mistake it was recorded as credit sales (3) Alap brought personal furniture of ₹ 10,000 on 1-10-2017 in the business, which was not recorded in the books of accounts. (4) Write of ₹ 10,000 as bad debts from debtors. Alap provide 10% for bad debts reserve and 2% for discount reserve on debtors. (5) Provide depreciation at 10% p.a. on furniture (6) Calculate interest on capital at 10% p.a. in excess of drawings amount (Capital-drawings = New capital)Prepare final accounts from the above information for the partnership firm.

Answer»

Gross profit = ₹ 2,04,000;

Net profit = ₹ 1,34,190

divisible profit = ₹ 1,14,190;

Out of which for Akash = ₹ 45,676 and

For Alap = ₹ 68,514;

Closing balance of capital :

Akash = ₹ 1,39,179;

Alap = ₹ 2,00,014;

Total of balance sheet = ₹ 3,89,190;

Depreciation on furniture = ₹ 4,500