Financial Accounting

Aru Math and Chathura were partners in a firm and in their partnership de provided that Profits and losses are shared at the ratio of 3:2:1 as between Aruna. Bhathiya and Chathura Partners shall be entitled to 10% interest on capital at the opening balance of each year Aruna, Bhathiya and Chathura are entitled to salary of Rs. 50,000, Rs. 75,000 and Rs. 60.000 respectively. On April 2013 Chathura decided to retire from the partnership and following terms on this regard 11 Aruna and Bhathiya agree to share future profits and losses in the 2) No any changes made for interest on capital and partners, salaries Assets are revalued as follows, . Land revalued at Rs. 1,180,000 Building appreciated at 20% Machinery reduced at 10% Stock revalued at Rs. 220,000 4) Goodwill is valued as Rs. 48,000 and it directly adjusted through the partners capital account 5) The amount payable to retired partners is to be treated as a loan Trial balance as at 31/0V20x4 600.000 400.000 200,000 30,000 10.000 12,000 40,000 30,000 3,100,000 capital accounts as at 01.04.20X3- Aruna Bathiya Chathura Current accounts as at 01.04.20X3 - Aruna Bathiya Chathura Drawings - Aruna Bathiya Sales Purchases Stock as at 1/4/2X13 Trade debtors Trade Creditor Land -Building - Cost Accumulated depreciation as at 01/04/2X13 1,500,000 200,000 300,000 150,000 1,000,000 600,000 200,000 500,000 Machinery - Cost Accumulated depreciation as at 01/04/2X13 Administration expenses Selling and Distribution expenses Cash 220,000 147.000 253,000 4,800,000 4,800,000 Additional Information: i. fi. Ili No adjustments were made on retirement of Chathura Closing inventory valued as Rs. 250,000 Assets should be depreciated as follows Building - 10% Machine - 20% You are required to prepare, 1. Income statement for the year ended 31/03/2X14 2. Statement of Financial Position as at 31/03/2X14 3. Partners' current accounts 4. Partners' capital accounts 5. Revaluation Account