Question

ram and rahim shares profit and losses in the ratio of 1:1 of their partnership firm. from the given trail balance you are required to prepare a trading and profit and loss account for the year ended 31 st march,2014 and balance sheet as on that date,after taking into consideration the additional information provided.
adjustment:
1) deprecate fixed asset at 10 %
2)closing stock cost rs 75000 but market value was rs.1500000
3)ram was to be paid salary of rs.60000 p.a
4)rahim was eligible yo commission of 1% on total sales
5)write off debt of rs.3400
6)outstanding salary rs.12000,rent rs.3000 and prepaid insurance rs.6000​

Answer 1

Answer:

Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.

2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.

3) Depreciate Machinery at 10%

p.a.

4) Outstanding Wages were Rs 2,500.

5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.