PARTNERSHIP FINAL ACCOUNTS From the following Trial balance of Mr. Nihal and Mr. Mahdi, you are required to prepare Trading and profit & loss account for the year ended 31st March, 2019 and Balance sheet as on that date. Note: Replace xxxin the place of Opening stock & Sales of the partners Nihal & Mahdi with the last 3 digits of your ID Number.

Trial Balance as on 31st March 2019 ______________________ Debit balance Amount(OMR) Stock as on (1/4/2018) 25,xxx Building 48,500 Carriage 1,780 Factory Insurance 2,700 Postage 1,600 Bills Receivable 13,700 Sundry Debtors 52,200 Return Inward 1,600 Purchases 68,900 Audit fees 1,800 Loose tools 32,000 Manufacturing Expenses 1,820 Electricity Charges 2,600 General Expenses 3,400 Export duty 1,000 Cash in hand 75,000 Bank Balance 29,000 Conveyance 4,100 Furniture 64,000 Salaries 2,000 Rent, Rates & Taxes 3,700 Drawings: Nihal 1,200 Mahdi 2,200 = 439,800

Credit balance Amount (OMR) Sundry Creditors 38,000 Sales 175,xxx Capital: Nihal 150,000 Mahdi 50,000 Outstanding Salaries 2,000 Bills Payable 18,000 Return Outward 1,800 Current A/c: Nihal 3,000 Mahdi 2,000

= 439,800 ___________________________

Adjustments: 1. Nihal and Mahdi are sharing profits and losses in the ratio 3:1 2. Partners are entitled to get commission @1% each on gross profit. 3. The closing stock is valued at OMR 23,700 4. Outstanding expenses- Audit fees OMR 400; Carriage OMR 600 5. Building is valued at OMR 46,500 6. Furniture is depreciated by 5%. 7. Provide interest on partners capital at 2.5% p.a. 8. Goods of OMR 900 were taken by Mahdi for his personal use. 9. Write off OMR 1,000 as Bad Debts and maintain reserve for doubtful debts at 3%on sundry debtors.

to Solution: 1) make table of Trading and Profit & Loss Account OR Income Statement

2)make table of Partners Current Account

3 )make table of Balance Sheet as on 31st March 2019