The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement.

Cr. 212500 127500 106250 1381250 10625 6375 42500 127500 0 0 ololo Particulars Dr. Particulars Land and Buildings 637500 X Capital A/c Plant and Machinery 191250 Y Capital A/C Wages 85000 Sundry creditors Opening Stock of Finished Goods 170000 Sales (net) Opening Stock of Raw material 85000 Discount Opening Stock of Work in Progress 76500 Provision for bad debts Sundry debtors 212500 Commission Carriage inwards 6375 Y's Loan A/C Carriage outwards 3825 Factory Expenses 31875 Royalties 6375 Purchase of Raw material (net) 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses 31875 Salaries of works manager 51000 Cash at bank 34850 2014500 The following additional information is to be taken into consideration: Closing Stock: Finished Goods Raw Materials Work in Progress Outstanding Liabilities: Wages Office Salaries Office Rent Partnership Salary: Y Insurance Premium paid in advance Provision for bad debts to be created @ 2.5% on debtors Depreciate Land and Buildings by 2.5% and Plant and Machinery by 5%. The loan account of Y was raised in the books before the beginning of the year. 0 0 0 0 0 0 0 2014500 212500 127500 106250 0 21250 25500 8500 0 25500 12750 2125 0 0 0