Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments with the help of following information
Trial Balance as on 31st March, 2019 Debit Balance Amount Credit Balance Amount Land & Building 40,000 Capital A/c Sun 33,500 Moon 33,500 Furniture 18,000 Current A/c: Sun 6,000 Machinery 40,000 Sundry Creditors 25,000 (Purchased on 01/07/18) Bank Overdraft 10,000 Goodwill 2,000 Reserve Fund 5,000 Wages 2,000 Provident Fund 5,000 Current A/c: Moon 4,000 8% Debentures 8,000 (Purchased on (01/10/18) Providend Fund Investment 3,500 Stock of Postal stamps 500 1,18,000 1,18,000 Adjustments: 1. Partners are entitled to get salary 6,000 p.a. in additional to their profit & loss sharing. 2. Depreciation on Land & Building, Furniture & Machinery @10%, 5% and 3% respectively. 3. Interest on Capital 5% p.a. 4. Closing stock 60,743 5. Wages included 1,000 as advance given to workers. 6. Interest due but not paid 800. 7. Total Net Profit amounted to 38,113. Solutio
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