Account Name	DebitBalance	Credit Balance
Capital
Mr. Dawood		---------
Mr. Rawan		----------
Drawings
Mr. Dawood	6,000
Mr. Rawan	5,000
Opening Stock	35,100
Purchases and Sales	---------	----------
Carriage inward	2,200
Returns	3,000	2,200
Stationery	1,200
Wages	12,500
Bills receivables and Bills payables	45,000	32,000
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

Mr. Dawood and Mr. Rawan 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, 2015.

1. Prepare final accounts for the year ended December 31,2016, with following adjustment:

(3marks)

(a) Stock on December 31,2015 was OMR ...

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

(c) Rent outstanding was OMR .

(d) Wages outstanding were OMR

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

(f) Mr. Dawood and Mr. Rawan are entitled to a Salary of OMR per annum.

(g) Mr. Rawan is entitled to a commission OMR

(2). Prepare Profit and loss appropriation account (2 Marks)

(3) Prepare Capital accounts of partners (1 Marks)

(4) Prepare Balance sheet of the partnership firm. (2 Marks)

(B) You and your friend Mr. Mohammed started a partnership firm. You are planning to admit another friend Mr. Ahammed as new partner. If you are admitting your friend Mr. Ahammed as a new partner, how it will affect in your partnership firm? (List any 4 impacts in the existing business) (2 Marks)

give any hypothetical value in blanks