Question

from the following trial balance and adjustment of rushabh and yash you are required to prepare final accounts as on 31 march ,2019 profit and loss sharing ratio of partners in their capital ratio ​

Answer 1

profit and loss sharing ratio

Step-by-step explanation:

1. Consider closing stock value ₹ 1,10,000 as its market value is 20% more.

2. Interest in drawings: Record it on the Cr. side of P & L A/c subtract it from the capital. (As shown)

3. Interest on an 8 % loan is calculated for 5 months (i.e. 1/11/18 to 31/3/19)

I =  P R N 100 PRN100 = 30,000 ×  8 100 × 5 12 8100×512 = ₹ 1,000

4. In the Trial Balance, the following balances have credit balance

5. O/s wages – Cr. bal. – write it on the Liability side of the Balance Sheet. 6. Prepaid insurance – Dr. bal. write it on the Asset side of the Balance Sheet