prepare income stetment

prepare income stetment

1. Q.1 P Q and Rare partners in a firm sharing profits in the ratio of 4:4:2 Partners are entitled to interest on capital 8% per annum and Salaries of 140 per month. The following balances were extracted from their books on 30 March 2020, Prepare Profit and Loss Account for the year ended 30 May, 2021 and a Balance Sheet as at that date. In doing so the following adjustments are required to be made P's Capital 30,000 P's Drawings 1.125 Q's Capital 25,000 Q's Drawings 1,000 R's Capital 15,000 R's Drawings 1.500 Salaries 4.965 Computer 32.100 Purchases 79,085 Sales 142,235 Buildings 36,870 Commission Dr. 1,060 Advertising 1,075 General Charges 2,670 Interest Cr. 200 Bad debts 625 Taxes and Insurance 1.235 Furniture 1.000 Repairs 1.245 Factory Expenses 25,785 Opening Stock of Raw Material 18.995 Bank Balance 5,745 Office expense 1,730 Sundry Debtor's 15,710 Sundry Creditors 4,300 Bills Receivable 4,465 Loan 25.5% 21.250 1. Closing stock was Valued RO 36,000 2. Write off depreciation on computer at 12.5%, on Buildings at 5% and on Building at 10% and on Furniture (5%. 3. Further Bad debts RO 1,000 4. RO 1,800 for factory expenses and RO 1,000 for salaries are outstanding