3. Rohan and Roshan are partners in ‘Shan Traders’ sharing profits and losses in the ratio of 2:1.

3. Rohan and Roshan are partners in ‘Shan Traders’ sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date.

Adjustments:

1) Closing stock: Cost price Rs. 25,000 and market price Rs. 30,000.

2) An amount of Rs. 3,500 spent for repairs to Building is debited to Building account.

3) Depreciate Plant and Machinery and Building at 5% p.a.

4) Goods of Rs. 750 taken by Roshan for this personal use.

5) Included in wages advances given to workers Rs. 3,000.

6) Provide Rs. 1,500 for bad and doubtful debts on Debtors.