Illustration 4 : A & B are partners and the trial balance and the necessary adjustments of there are given below: Trial balance as on 31st March, 2010 j"? Particulars Rs. Particulars Rs. 1,27,000 1,35,000 3,05,000 3,230 21,070 10,825 Purchase 2,59,000 Capital : Sales Returns 4,250 A Debtors 50,200 B Opening Stock 21,000 Sales Salaries 13,600 Purchase Returns Wages 20,100 Creditors Furniture Balance as on Dividend on Investment 1-4-2009 16,750 (+) Purchases 31.3.2010 1,700 Machines 16,229 Bad debts 315 Advertisements 46,000 (for 5 years w.e.f. 1/10/2009) Investments 1,20,500 Current Account: 3,000 B Cash and Bank balance 1,500 27,981 6,02,125 6,02,125 Adjustments : 1. Closing Stock Rs.75,000/-. 2. Depreciation on machines at 5% and on furniture at 10% p.a. 3. Salaries to A Rs.2,000/- p.m. 4. Interest on Capital at 5%. After considering the adjustments, prepare the trading and