Devi & Jaya were partners sharing profits and losses in ratio 3/5 & 2/5. Interest on Capital was allowed @ 5% p.a. but interests on drawings were ignored. The following balances of accounts were given on 30.9.1997.


Debit
Rs.
Credit
Rs.
Opening Stock
Sundry Debtors
Purchases
Wages
Salaries
Office Expenses
Conveyance
Insurance
Plant & Machinery
Return Inward
Land & Building
Cash at Bank
Bills Receivable
Drawings :
Devi
Jaya
20,000
28,200
40,000
8,500
2,700
2,446
1,300
1,800
30,000
3,500
40,000
2,654
12,000

4,200
1,200
Return Outward
Sundry Creditors
Sales
Reserve for Bad Debts
Capital Account:
Devi
Jaya
Loan @ 10% p.a. (Taken on 1.4.97)
2,500
31,600
70,000
400

70,000
20,000
4,000
1,98,500
1,98,500

You are given the following additional information.
1.   Closing stock was valued at Rs. 52,000/-
2.   Bills Receivable includes a dishonoured bill of Rs. 2,000
3.   Write off Rs. 200/- as further bad debts and provide 6% reserve for bad debts on Sundry debtors.
4.   Devi was entitled to a salary @ Rs. 500 p.m. and Jaya was entitled to a commission of 5% on Gross profit.
5.   Carriage inward included Rs. 1, 000 paid for transport charges and octroi on new machinery purchases on 1- 10 – 1996.

52200
30344
93506-34548
163854
GROSS PROFIT
NET PROFIT
PARTNERS CAPITAL ACCOUNT BALANCE
BALANCE SHEET TOTAL