. Questions Bank The following additional information is to be taken into consideration: Closing Stock: Finished goods R.O 50,000; Raw material R.O 30,000; Work in Progress R.O 25,000. Outstanding liabilities: Wages R.O 5,000; Office salaries R.O 6,000 and office rent R.O 2,000. Provision for bad debts to be adjusted to 2.5% on debtors. Insurance premium paid in advance R.O 500. Depreciate freehold premises by 2.5% and plant and machinery by 5%. Partnership salary to be allowed to X R.O 6,000 and to Y R.O 3,000. The loan account of Y was raised in the books before the beginning of the year. . . Required: prepare the Profit & Loss Account and the Balance Sheet Questions Bank 7. The following is the trail Balance of Xandy Co, as on 31" March, 2008. The partners sharing profits and losses in the ratio 2:1 CE 30.000 375.000 2500 Freehold premises Man and Machinery Wages Opening Slock Finished Goods Raw material Work in Progress Sundry deblors Corrlage Inwards Carriage outwards Factory Expenses Royalties Purchase of Raw material (net) Factory rent & laxes Discount Ollicerent Insurance Bad debts Office Expenses Salaries of works manager Cash al bank Dr. 150 000 X Capital A/C 45.000 Y Capital A/C 20 000 Sales (net) Discount 40,000 20.000 18.000 50.000 Provision for bad debts 1.500 Commission 900 Y's toon Alc 7.500 Sundry creditors 1.500 75,000 6 500 2.900 4.000 2.000 1.500 7,500 12.000 8.200 474,000 1,500 10.000 30 000 25 000 474000