Kajol and Sunny were partners sharing profits and losses in the ratio

1.	Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2006. Account NameAmt. (Dr)Amt. (Cr)Capital Kajol115,000 Sunny91,000Current Accounts (on 1-04-2005) Kajol4,500 Sunny3,200Drawings Kajol6,000 Sunny3,000Opening Stock22,700Purchase and Sales1,65,0002,35,800Freight Inward1,200Returns2,0003,200 Account NameAmt. (Dr)Amt. (Cr)Printing and Stationery900Wages5,500Bills Receivables and Bills25,00021,000PayablesDiscount400800Salaries6,000Rent7,200Insurance Premium2,000Travelling Expenses700Soundry Expenses1,100Commission1,600Debtors and Creditors74,00078,000Building85,000Plant and Machinery70,000Motor Car60,000Furniture and Fixtures15,000Bad Debts1,500Provision for Doubtful Debts2,200Loan25,000Legal Expenses300Audit Fee900Cash in Hand7,500Cash at Bank12,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,78,100––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,78,100–––––––––– Prepare final accounts for the year ended March 31, 2006, with following adjustments (a) Stock on March 31, 2006 was Rs 37,500. (b) Bad debts Rs 3,000; Provision for bad debts is to be made at 5% on debtors. (c) Rent prepaid were Rs 1,200. (d) Wages outstanding were Rs 2,200. (e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged 5% per annum. (f) Kajol is entitled to a Salary of Rs 1,500 per annum. (g) Prepaid insurance was Rs 500. (h) Depreciation was charged on Building, 4%; Plant and Machinery 5% Motor car, 10% and Furnniture and Fixture, 5%. (i) Goods worth Rs 7,000 were destroyed by fire on January 20, 2005. Insurance company agreed to pay Rs 5,000 in full settlement of the case.
Answer» Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2006. $\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Capital Kajol & 115, 000 Sunny & 91, 000 Current Accounts (on 1-04-2005) Kajol & 4, 500 Sunny & 3, 200 Drawings Kajol & 6, 000 Sunny & 3, 000 Opening Stock & 22, 700 Purchase and Sales & 1, 65, 000 & 2, 35, 800 Freight Inward & 1, 200 Returns & 2, 000 & 3, 200 \end{matrix}$ $\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Printing and Stationery & 900 Wages & 5, 500 Bills Receivables and Bills & 25, 000 & 21, 000 Payables Discount & 400 & 800 Salaries & 6, 000 Rent & 7, 200 Insurance Premium & 2, 000 Travelling Expenses & 700 Soundry Expenses & 1, 100 Commission & 1, 600 Debtors and Creditors & 74, 000 & 78, 000 Building & 85, 000 Plant and Machinery & 70, 000 Motor Car & 60, 000 Furniture and Fixtures & 15, 000 Bad Debts & 1, 500 Provision for Doubtful Debts & 2, 200 Loan & 25, 000 Legal Expenses & 300 Audit Fee & 900 Cash in Hand & 7, 500 Cash at Bank & 12, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 78, 100 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 78, 100 - -------- - \end{matrix}$ Prepare final accounts for the year ended March 31, 2006, with following adjustments (a) Stock on March 31, 2006 was Rs 37,500. (b) Bad debts Rs 3,000; Provision for bad debts is to be made at 5% on debtors. (c) Rent prepaid were Rs 1,200. (d) Wages outstanding were Rs 2,200. (e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged 5% per annum. (f) Kajol is entitled to a Salary of Rs 1,500 per annum. (g) Prepaid insurance was Rs 500. (h) Depreciation was charged on Building, 4%; Plant and Machinery 5% Motor car, 10% and Furnniture and Fixture, 5%. (i) Goods worth Rs 7,000 were destroyed by fire on January 20, 2005. Insurance company agreed to pay Rs 5,000 in full settlement of the case.

Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2006. Account NameAmt. (Dr)Amt. (Cr)Capital Kajol115,000 Sunny91,000Current Accounts (on 1-04-2005) Kajol4,500 Sunny3,200Drawings Kajol6,000 Sunny3,000Opening Stock22,700Purchase and Sales1,65,0002,35,800Freight Inward1,200Returns2,0003,200 Account NameAmt. (Dr)Amt. (Cr)Printing and Stationery900Wages5,500Bills Receivables and Bills25,00021,000PayablesDiscount400800Salaries6,000Rent7,200Insurance Premium2,000Travelling Expenses700Soundry Expenses1,100Commission1,600Debtors and Creditors74,00078,000Building85,000Plant and Machinery70,000Motor Car60,000Furniture and Fixtures15,000Bad Debts1,500Provision for Doubtful Debts2,200Loan25,000Legal Expenses300Audit Fee900Cash in Hand7,500Cash at Bank12,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,78,100––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯5,78,100–––––––––– Prepare final accounts for the year ended March 31, 2006, with following adjustments (a) Stock on March 31, 2006 was Rs 37,500. (b) Bad debts Rs 3,000; Provision for bad debts is to be made at 5% on debtors. (c) Rent prepaid were Rs 1,200. (d) Wages outstanding were Rs 2,200. (e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged 5% per annum. (f) Kajol is entitled to a Salary of Rs 1,500 per annum. (g) Prepaid insurance was Rs 500. (h) Depreciation was charged on Building, 4%; Plant and Machinery 5% Motor car, 10% and Furnniture and Fixture, 5%. (i) Goods worth Rs 7,000 were destroyed by fire on January 20, 2005. Insurance company agreed to pay Rs 5,000 in full settlement of the case.

Answer»

Kajol and Sunny were partners sharing profits and losses in the ratio of 3:2. The following Balances were extracted from the books of account for the year ended March 31, 2006.

$\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Capital Kajol & 115, 000 Sunny & 91, 000 Current Accounts (on 1-04-2005) Kajol & 4, 500 Sunny & 3, 200 Drawings Kajol & 6, 000 Sunny & 3, 000 Opening Stock & 22, 700 Purchase and Sales & 1, 65, 000 & 2, 35, 800 Freight Inward & 1, 200 Returns & 2, 000 & 3, 200 \end{matrix}$

$\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Printing and Stationery & 900 Wages & 5, 500 Bills Receivables and Bills & 25, 000 & 21, 000 Payables Discount & 400 & 800 Salaries & 6, 000 Rent & 7, 200 Insurance Premium & 2, 000 Travelling Expenses & 700 Soundry Expenses & 1, 100 Commission & 1, 600 Debtors and Creditors & 74, 000 & 78, 000 Building & 85, 000 Plant and Machinery & 70, 000 Motor Car & 60, 000 Furniture and Fixtures & 15, 000 Bad Debts & 1, 500 Provision for Doubtful Debts & 2, 200 Loan & 25, 000 Legal Expenses & 300 Audit Fee & 900 Cash in Hand & 7, 500 Cash at Bank & 12, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 78, 100 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 5, 78, 100 - -------- - \end{matrix}$

Prepare final accounts for the year ended March 31, 2006, with following adjustments

(a) Stock on March 31, 2006 was Rs 37,500.

(b) Bad debts Rs 3,000; Provision for bad debts is to be made at 5% on debtors.

(d) Wages outstanding were Rs 2,200.

(e) Interest on capital to be allowed on capital at 6% per annum and interest on drawings to be charged 5% per annum.

(f) Kajol is entitled to a Salary of Rs 1,500 per annum.

(g) Prepaid insurance was Rs 500.

(h) Depreciation was charged on Building, 4%; Plant and Machinery 5% Motor car, 10% and Furnniture and Fixture, 5%.

(i) Goods worth Rs 7,000 were destroyed by fire on January 20, 2005. Insurance company agreed to pay Rs 5,000 in full settlement of the case.

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