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.

Arjuns Capital	30,000
Arjuns Drawings	1,125
Bhims Capital	25,000
Bhims 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