HOMEWORK-3 Partnership - Final A/c

1. Barua and Das are partners sharing profit in the ratio of 53:53. Their trial balance as on 31st
March, 2021 was as follows.

Debit ₹ Credit ₹
Plant & Machinery 34,000 Capital:
Furniture 3,000 Barua 25,000
Building 30,000 Das 25,000 50,000
Debtors 21,000 Sundry Creditors 25,000
Carriage Outward 840 Bank overdraft 8,000
Salaries 5,600 Provision for Doubtful debts 1,200
Bad Debts 300 Wages outstanding 100
Cash in Hand 60 Trading Account (Gross Profit) 49,380
Cash at Bank 280
Insurance 600
10% Investment (1-04-2020) 10,000
Drawings:
Barua 8,000
Das 6,000 14,000
Closing Stock 14,000
1,33,680 1,33,680
Prepare Profit and Loss Account and profit and appropriation account along with Balance
Sheet for the year ended 31st December, 2020 after taking into consideration the following
adjustments.
(i) Outstanding Expenses :
Salaries ₹200
Interest on Bank Overdraft ₹150
(ii) Plant and Machinery included a Machine worth of ₹10,000 purchased on 1stOct. 2020
(iii) Provide Depreciation on Plant and Machinery and Furniture @10% per annum and on
Building @2.5%
(iv) Prepaid insurance ₹100
(v) Interest on Capital to be allowed @ 10% per annum.