Financial Accounting

seyati chess Example 1 Nimal, Sunil and Rohan are carrying on a business with the following agreements. A. Nimal and Rohan re to be credited with monthly salary of Rs. 5,000 and Rs. 7,500 respectively. In addition to that 5% interest should paid to the opening balance of capital accounts of each partners. 2. Drawings are made as follows: Nimal Rs. 6,250 at the start of every month, Sunil Rs 3,600 at the middles of every month and Rohan Rs. 7,500 at end of every month. Interest on drawings charged at 12% per annum. 3. Profit and loss sharing ratio among partners should be 2:2:1 The trial balance as at 31/03/2X14 was as follows: Dr Cr Capital Accounts as at 01.04.2X13 - Nimal 1,000,000 Sunil 625,000 Rohan 375,000 PRge12 Cr Current Accounts as at 01.04.2X13- Nimal 200,000 Sunil 12,500 Rohan 100,000 Drawing- Nimal Sunil 000's 43,200 Rohan 90,000 Sales Sales Returm 6,160,000 25,000 Creditors 162,500 General Reserves 120,000 Office equipment Accumulated depreciation as at 01/04/2X13 Land 450,000 175,000 750,000 Building -Cost Accumulated depreciation as at 01/04/2X13 Investment made on 01/04/2X13 800,000 125,000 200,000 18,000 Interest income on investment (01/04/2X13- 31/12/20X3) Tocumulated depreclHUl Investment made on 01/04/2X13 Interest income on investment (01/04/2X13 - 31/12/20X3) Purchases Stock as at 01/04/2X13 Salaries and Wages 200,000 18,000 3,700,000 525,000 800,000 Carriage inwards Office Expenses 30,000 565,000 Rent and Rates 131,000 Selling and Distribution expense 24,200 Debtors 281,300 Bad debts 20,000 Frovision for doubtful debts as at 01/04/2X13 26,300 Loan to Rohan 125,000 Cash at bank 671,000 Loan from Nimal 232,000 9,318.800 9,318,800 Additional tnformation Closing stock is estimated as follows Cost Rs - 450,000 and net realizable value Rs-330,000 Rs. 7,500 bad debts should be written off and 10% provision for doubtful debts should be provided for the debtors' balance 3. Rent paid in advance and accrued office expenses are Rs. 31,000 and Rs. 36,000 respectively. 4. Office equipment and buildings should be depreciated at 20% and 10% respectively. Salaries and wages include Rs. 10,000 and Rs. 15,000 paid to Nimal and Rohan respectively as their two months' partners' salaries. 6. 10% of net profit should be transferred in to general reserve. You are required to prepare: 1. Income statement for the year ended 31/03/3X14 2 Statement of Financial Position as at 31/03/3X14 3. Partners' current accounts