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3. The following is the Trail Balance of Mr. X and Ms. Y LLC as on 31st March, 2020. The partners sharing profits and losses
3. The following is the Trail Balance of Mr. X and Ms. Y LLC as on 31st March, 2020. The partners sharing profits and losses in the ratio 3:2. Trail Balance Dr. Particulars RO Cr. Particulars RO Freehold Premises 225,000 Mr. X's Capital A/C 75,000 Plant and Machinery 67,500 Ms. Y's Capital A/C 45,000 Wages 30,000 Sundry Creditors 37,500 Opening Stock: Raw Materials 30,000 Sales (Net) 487,500 Opening Stock: Work In Progress 27,000 Discount 3,750 Opening Stock: Finished Goods 60,000 Provision for Bad Debts 2,250 Carriage Inwards 2,250 Commission 15,000 Sundry Debtors 75,000 Ms. Y's Loan A/C 45,000 Cash at Bank 12,300 Carriage Outwards 1,350 Factory Expenses 11,250 Royalties 2,250 Purchase of Raw Materials (Net) 112,500 Factory Rent & Taxes 9.750 Discount 4,350 Office Rent 6,000 Insurance 3,000 Bad Debts 2.250 Office Expenses 11,250 Salaries of Works Manager 18,000 711,000 711,000 The following additional information is to be taken into consideration: Closing Stock: Raw Materials RO 15,000; Work in Progress RO 12,500; Finished Goods RO 25,000 Outstanding liabilities: Wages RO 7,500; Office Salaries RO 9,000 and Office Rent RO 3,000. Provision for Bad Debts to be adjusted to 2.5% on Sundry Debtors. Insurance Premium paid in advance RO 750 Depreciate Freehold Premises by 2.5% and Plant and Machinery by 5%. Partnership salary to be allowed to Mr. X RO 9,000 and to Ms. Y RO 4,500 The loan account of Y was raised in the books before the beginning of the year. Prepare the Income Statement and the Balance Sheet. 4. Mr. Ahmed and Mr. Zuhair are partners sharing profits and losses in the ratio of 4:3. Their Balance sheet as on 31st March 2020 is as follows. Balance Sheet Liabilities Amount (RO) Assets Amount (RO) Capital Accounts: Cash in hand 12,500 Mr. Ahmed 200,000 Cash at Bank 30,000 Mr. Zuhair 100,000 Stock 75,000 General Reserve 100,000 Plant & Machinery 62,500 Sundry Creditors 150,000 Land & Buildings 250,000 Accounts Payable 50,000 Furniture 20,000 Mr. Rahim's Loan A/C 200,000 Tools & Equipment 50,000 Accounts Receivable 100,000 Sundry Debtors 175,000 Profit & Loss A/C 25,000 Total 800,000 Total 800,000 On 1st April 2020, they agreed to admit Mr. Abbas into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at RO 300,000 b) Stock is revalued at RO 53,750 c) Goodwill is raised at RO 100,000 d) Provision for bad debts is made at 7.5% e) Provision for Outstanding Liability is to be created @ RO 5,000 f) Mr. Abbas is to bring in a Capital of RO 125,000 but he was unable to bring the amount of Goodwill. Record the necessary journal entries, Prepare Revaluation account, Capital Accounts and the Balance Sheet of the reconstituted firm
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