omtexclasses.com: 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.

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