Arti and Bharti are partners sharing profit and loss of in 2 : 3 propo

Arti and Bharti are partners sharing profit and loss of in 2 : 3 proportion of a partnership firm. From the trial balance dated 31-3-2018 and adjustments prepare final accounts for the firm.Adjustments :(1) Closing stock of goods includes closing stock of stationery ₹ 3,000. (2) Goods return (credit) ₹ 2,000 is not recorded in the books of accounts. (3) Increase rate of depreciation on machines at 20%. (4) Provide 5% bad debts reserve on debtors. (5) Calculate 10% interest on capital.

Answer»

Gross profit = ₹ 1,40,000;

Net profit = ₹ 52,500;

divisible loss = ₹ 17,500;

Out of which for Arti = ₹ 7,000

and for Bharti ₹ 10,500;

Closing balance of Capital Arti : ₹ 3,23,000;

Bharti : ₹ 4,03,500;

Total of Balance sheet = ₹ 9,84,000