Question

9. Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You
are required to give effects of Adjustments with the help of following information.
Trial Balance as on 31" March, 2019
Debit Balance
Amount
Credit Balance
Amount
Land & Building
40,000 Capital A/C
Furniture
18.000 Sun
33,500
Machinery
40.000 Moon
33,500
(Purchased on 1/7/18)
Current A/c: Sun
6,000
Goodwill
2.000 Sundry Creditors
25,000
Wages
2.000 Bank Overdraft
10,000
Current Alc: Moon
4.000 Reserve Fund
5.000
8% Debentures
8,000 Providend Fund
5.000
(Purchased on 1/10/18)
Providend Fund Investment
3.500
Stock of Postal stamps
500
1,18.000
1,18.000
Adjustments :
1) Partners are entitled to get salary 6.000 p.a. in addition to their profit & loss sharing.
2) Depreciation on Land & Building, Furniture & Machinery @ 10%, 5% and 3% respectively
3) Interest on Capital 5% p.a.
4) Closing Stock 60,743.
5) Wages included 1,000 as advance given to workers.
6) Interest due but not paid * 800.
7) Total Net Profit amounted to 38.113.
You are required to prepare Balance Sheet and Partners Current A/c only.
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Answer 1

Explanation:

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