Question

From the following Trial Balance extracted from the books of M/s. Shiva Hari Pratisthan,
prepare the Final Accounts as on 31st March, 2018 :
Dr. Balances
Cr. Balances
7,000
Drawings
1,05,000
Capital
10,000
Goodwill
14,500
Sundry Creditors
Plant and Machinery
40,000 Sales
1,60,000
Office Furniture
5,000 Returns Outward
2,500
Sundry Debtors
40,500 Bills Payable
8,900
Purchases
85,000
Returns Inward
1,500
Rent
3,750
Postage and Telégrams
500
Advertising
9,000
Cash
11,500
Stock (1st April, 2017)
16,000
14,000
Telephone
500
Salaries
12,250
Printing & Stationery
740
Commission
5,000
Travelling Expenses
2,000
Carriage
5,800
20,860
2,90,900
2,90,900
Adjustments :
(1) Write off 250 from Office Furniture and Plant and Machinery 10%.
(2) Create a Reserve of 5% on Sundry Debtors.
(3) Closing Stock * 12,500.
Wages
Motor Van​

Answer 1

Explanation:

12300 Net profit transfer to partner capital account