14 Chintan and Clara are partners of a firm sunt profits and losses in the ratio of 12 Following is the trial balance as on 31-3-18 From this and the adjustments prepare final accounts
Trial Balance as on 31-3-18
LT
Am
Chair Balance
6,000 Chintan capital
9,000
Chirag capital
5,000 Ch Current A/e
65000
Creditors
10,000 Bills payable
35.000
20,000
35.000
8.000
7.300
3.050
700
7,500
12.000
6.000
600
2,33,350
8 Ion taken on 1-7-'17
Interest
Commission
Cross profit
Delal Balunen
Cast balance
Bank balance
Bills receivable
Stock of goods om 1-3-'181
Investment in shares Building
Plant machinery
Debtors
China's Current Ae
Chintan's drawings
Chirag drawings
Rent. tax and insurance
Interest
Advertisement expense
Stationery
Salary
Selling expense
Outstanding commission
LT
Amunt
40.000
10.000
12:000
2,000
25,000
2,000
58040
OSE
Total
Total
2.33.350
Adjustments :1) Carry forward half amount of advertisement expense to the next year. Chintan has to be paid a commission of 5% on the distributable profit, and
interest on fixed capital of 10% opening balances of current accounts at 5" has to be calculated. While interest on drawings is to be charged at 12% () 12% dividend on shares is declared. but has not been received still (V) Depreciate building by 10% and plant-machinery by 5%
(v Create a reserve of 5% on debtors, and make a provision of 2% discount debtors
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Step-by-step explanation:
Adjustments :1) Carry forward half amount of advertisement expense to the next year. Chintan has to be paid a commission of 5% on the distributable profit, and
interest on fixed capital of 10% opening balances of current accounts at 5" has to be calculated. While interest on drawings is to be charged at 12% () 12% dividend on shares is declared. but has not been received still (V) Depreciate building by 10% and plant-machinery by 5%
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