QUESTION NO.17 From the following balances of Ali,Ahmed as on 31.12.2016, Opening stock 30,000 Machinery at cost (including ~ 10,000 new) 60,000 Purchases 1,10,000 Sundry
QUESTION NO.17 From the following balances of Ali,Ahmed as on 31.12.2016,
Opening stock 30,000 Machinery at cost (including ~ 10,000 new) 60,000
Purchases 1,10,000 Sundry Debtors 20,000
Sales 2,50,000 Bad debts 3,000
Building 55,000 Depreciation fund 25,000
Wages 23,000 Sundry Creditors 24,000
Carriage inwards 3,000 Rent,rates and taxes 4,000
Bills payable 10,000 Trade expenses 4,000
Furniture 9,000 Capital : Ali 50,000
Salaries 42,000 Capital : Ahmed 40,000
Advertisement 24,000 Petty expenses 4,000
Coal and coke 2,000 Provision for bad debts 1,000
Cash at bank 14,000 Gas and water 1,200
Prepaid wages 1,000 Cash in hand 800
Depreciation fund investment 25,000 Outstanding rent 400
Bank loan 34,600
The following additional information is supplied:
(a) The partners share profits and losses as Ali 2/5 and Ahmed 3/5.
(b) Closing stock —- ~ 15,000.
(c) Stock valued at ~ 10,000 was destroyed by fire but the Insurance Company admitted a claim of ~ 8,500 only, and
the claim is not yet paid.
(d) Wages include ~ 2,000 for installation of a new machinery on 1.9.2016.
(e) Depreciate machinery at 10% p.a.
Prepare the Trading Account for the year ended 31.12.2016.
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