1. Q.1 Arjun, Bhim and Kartik are partners in a firm sharing profits in the ratio of 2:2:1. Partners are entitled to interest on capital 6% per annum and Salaries of RO 120 per month. The Following balances were extracted from their books on 30th March, 2020. Arjun's Capital 30,000 Arjun's Drawings 1,125 Bhim's Capital 25,000 Bhim's Drawings 1,000 Kartik Capital 15,000 Kartik Drawings 1,500 Office Salaries 4,965 Plant and Machinery 32,100 Purchases 79,085 Sales 142.235 Buildings 36,870 Interest Dr. 1,060 Advertising 1,075 General Charges 2,670 Discount Cr. 200 Bad debts 625 Taxes and Insurance 1,235 Furniture 1,000 Repairs 1,245 Rent 25,785 Opening Stock of Raw Material 18,995 Cash in Hand 5,745 Office expense 1,730 Sundry Debtors 15,710 Sundry Creditors 4,300 Bills Receivable 4,465 Loan @6.5% 1,250 Prepare Profit and Loss Account for the year ended 30th May, 2021 and a Balance Sheet as at that date. In doing so the following adjustments are required to be made. 1. Closing stock was Valued RO 36,000 2. Write off depreciation on plant and machinery at 10%, on Buildings at 5% and on Furniture at 11.5%. 3. Further Bad debts RO 1,000 4. RO 800 for Rent and RO 1,000 for salaries are outstanding