Dinker and Ravinder were partners sharing profits and losses in the ra

1.	Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2005. Account NameAmt. (Dr)Amt. (Cr)Capital Dinker2,35,000 Ravinder1,63,000Drawings Dinker6,000 Ravinder5,000Opening Stock35,100Purchase and Sales2,85,0003,75,800 Account NameAmt. (Dr)Amt. (Cr)Carriage Inward2,200Returns3,0002,200Stationery1,200Wages12,500Bills Receivables and Bills45,00032,000PayablesDiscount900400Salaries12,000Rent and Taxes18,000Insurance Premium2,400Postage300Sundry Expenses1,100Commission3,200Debtors and Creditors95,00040,000Building1,20,000Plant and Machinery80,000Investments1,00,000Furniture and Fixture26,000Bad Debts2,000Bad Debts Provision4,600Loan35,000Legal Expenses200Audit Fee1,800Cash in Hand13,500Cash at Bank23,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,91,200––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,91,200–––––––––– Prepare final accounts for the year ended December 31, 2005, with following adjustment (a) Stock on December 31, 2005 was Rs 42,500. (b) A Provision is to be made for bad debts at 5% on debtors. (c) Rent outstanding was Rs 1,600. (d) Wages outstanding were Rs 1,200. (e) Interest on capital to be allowed on capital 4% per annum and interest on drawings to be on charged 6% per annum. (f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum. (g) Ravinder is entitled to a commission Rs 1,500. (h) Depreciation is to be charged on Building 4%, Plant and Machinery, 6%, and furniture and fixture, 5%. (i) Outstanding interest on loan amounted to Rs 350.
Answer» Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2005. $\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Capital Dinker & 2, 35, 000 Ravinder & 1, 63, 000 Drawings Dinker & 6, 000 Ravinder & 5, 000 Opening Stock & 35, 100 Purchase and Sales & 2, 85, 000 & 3, 75, 800 \end{matrix}$ $\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Carriage Inward & 2, 200 Returns & 3, 000 & 2, 200 Stationery & 1, 200 Wages & 12, 500 Bills Receivables and Bills & 45, 000 & 32, 000 Payables Discount & 900 & 400 Salaries & 12, 000 Rent and Taxes & 18, 000 Insurance Premium & 2, 400 Postage & 300 Sundry Expenses & 1, 100 Commission & 3, 200 Debtors and Creditors & 95, 000 & 40, 000 Building & 1, 20, 000 Plant and Machinery & 80, 000 Investments & 1, 00, 000 Furniture and Fixture & 26, 000 Bad Debts & 2, 000 Bad Debts Provision & 4, 600 Loan & 35, 000 Legal Expenses & 200 Audit Fee & 1, 800 Cash in Hand & 13, 500 Cash at Bank & 23, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 91, 200 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 91, 200 - -------- - \end{matrix}$ Prepare final accounts for the year ended December 31, 2005, with following adjustment (a) Stock on December 31, 2005 was Rs 42,500. (b) A Provision is to be made for bad debts at 5% on debtors. (c) Rent outstanding was Rs 1,600. (d) Wages outstanding were Rs 1,200. (e) Interest on capital to be allowed on capital 4% per annum and interest on drawings to be on charged 6% per annum. (f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum. (g) Ravinder is entitled to a commission Rs 1,500. (h) Depreciation is to be charged on Building 4%, Plant and Machinery, 6%, and furniture and fixture, 5%. (i) Outstanding interest on loan amounted to Rs 350.

Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2005. Account NameAmt. (Dr)Amt. (Cr)Capital Dinker2,35,000 Ravinder1,63,000Drawings Dinker6,000 Ravinder5,000Opening Stock35,100Purchase and Sales2,85,0003,75,800 Account NameAmt. (Dr)Amt. (Cr)Carriage Inward2,200Returns3,0002,200Stationery1,200Wages12,500Bills Receivables and Bills45,00032,000PayablesDiscount900400Salaries12,000Rent and Taxes18,000Insurance Premium2,400Postage300Sundry Expenses1,100Commission3,200Debtors and Creditors95,00040,000Building1,20,000Plant and Machinery80,000Investments1,00,000Furniture and Fixture26,000Bad Debts2,000Bad Debts Provision4,600Loan35,000Legal Expenses200Audit Fee1,800Cash in Hand13,500Cash at Bank23,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,91,200––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,91,200–––––––––– Prepare final accounts for the year ended December 31, 2005, with following adjustment (a) Stock on December 31, 2005 was Rs 42,500. (b) A Provision is to be made for bad debts at 5% on debtors. (c) Rent outstanding was Rs 1,600. (d) Wages outstanding were Rs 1,200. (e) Interest on capital to be allowed on capital 4% per annum and interest on drawings to be on charged 6% per annum. (f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum. (g) Ravinder is entitled to a commission Rs 1,500. (h) Depreciation is to be charged on Building 4%, Plant and Machinery, 6%, and furniture and fixture, 5%. (i) Outstanding interest on loan amounted to Rs 350.

Answer»

Dinker and Ravinder were partners sharing profits and losses in the ratio of 2:1. The following balances were extracted from the books of account, for the year ended December 31, 2005.

$\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Capital Dinker & 2, 35, 000 Ravinder & 1, 63, 000 Drawings Dinker & 6, 000 Ravinder & 5, 000 Opening Stock & 35, 100 Purchase and Sales & 2, 85, 000 & 3, 75, 800 \end{matrix}$

$\begin{matrix} Account Name & Amt. (Dr) & Amt. (Cr) Carriage Inward & 2, 200 Returns & 3, 000 & 2, 200 Stationery & 1, 200 Wages & 12, 500 Bills Receivables and Bills & 45, 000 & 32, 000 Payables Discount & 900 & 400 Salaries & 12, 000 Rent and Taxes & 18, 000 Insurance Premium & 2, 400 Postage & 300 Sundry Expenses & 1, 100 Commission & 3, 200 Debtors and Creditors & 95, 000 & 40, 000 Building & 1, 20, 000 Plant and Machinery & 80, 000 Investments & 1, 00, 000 Furniture and Fixture & 26, 000 Bad Debts & 2, 000 Bad Debts Provision & 4, 600 Loan & 35, 000 Legal Expenses & 200 Audit Fee & 1, 800 Cash in Hand & 13, 500 Cash at Bank & 23, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 91, 200 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 91, 200 - -------- - \end{matrix}$

Prepare final accounts for the year ended December 31, 2005, with following adjustment

(a) Stock on December 31, 2005 was Rs 42,500.

(b) A Provision is to be made for bad debts at 5% on debtors.

(d) Wages outstanding were Rs 1,200.

(e) Interest on capital to be allowed on capital 4% per annum and interest on drawings to be on charged 6% per annum.

(f) Dinker and Ravinder are entitled to a Salary of Rs 2,000 per annum.

(g) Ravinder is entitled to a commission Rs 1,500.

(h) Depreciation is to be charged on Building 4%, Plant and Machinery, 6%, and furniture and fixture, 5%.

(i) Outstanding interest on loan amounted to Rs 350.

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