1) Interest on Partner's Capital Vijay= Rs. 5,00,000 x 7.5% = Rs. 37,500 Lakshmi = Rs. 5,00,000 x 7.5% = Rs. 37,500 2) Interest on Partner's Drawings Vijay= Rs. 25,000 x 6% x 6/12 = Rs. 750 Since, no dates have been given for drawings, we take an average of 6 months and hence calculate the interest for 6 months. 3) Depreciation Building= Rs. 10,00,000 x 10% = Rs. 1,00,000 Furniture= Rs. 2,00,000 x 10% = Rs. 20,000 4) New RDD = Rs. 25,000 x 6% = Rs. 15,000 5) Interest accrued on bonds = Rs. 5,00,000 x 10% x 6/12 = Rs. 25,000 6) Distribution of Profit Profits are distributed in the ratio of their capitals, i.e. equally. Vijay = Rs. 7,20,750 x 1/2 = Rs. 3,60,375 Lakshmi = Rs. 7,20,750 x 1/2 = Rs. 3,60,375 32 6. Tom and Riddle share profits and losses in the ratio of 5:2 of their partnership firm. From the given Trial balance you are required to prepare a Trading and Profit & Loss A/c for the year ended 31st March, 2014 and a Balance Sheet as on that date, after taking into consideration the additional information provided. Trial Balance as on 31st March, 2014 Particulars Debit Amt. Rs. Credit Amt. Rs. Land & Building 2,51,110 Machinery 16,540 Opening Stock 65,240 Wages 1.25,643 Bank end 3,26,548 Sundry Debtors 735 1,25,463 Dusch Purchases 5,46,872 AGO Import duty 56,324 Rent, rates and taxes 65,987 Salaries 1,26,340 Office expenses 12,000 Drawings A/C Tom 65,423 Riddle 56,432 Capital A/C Tom 3,00,000 Riddle 3,00,000 Sales 10,00,000 Creditors 2,30,000 Rent received in Advance 9,922 18,39,922 18,39,922 Adjustments: 1) Closing stock was valued at Rs. 99,999. 2) Goods worth Rs. 5,670 purchased on 25.03.2013, included in closing stock but not recorded in purchase book. 3) Depreciate Fixed Assets at 10% 4) Salaries of Rs. 12,500 are outstanding . 5) Write off bad debts of Rs. 3,500