3. Ram and Shyam share profits and losses in the ratio 1:2 of a partnership firm. From the given Trial balance you are required to prepare a Trading and Profit & Loss A/c for the year ended 31st March, 2012 and a Balance Sheet as on that date, after taking into consideration the additional information provided.
Adjustments:
1) Closing stock had a cost of Rs. 45,000 whereas the market price was Rs. 60,000.
2) Outstanding expenses - Salaries Rs. 1,500, Wages Rs. 2,000, Rent 1,200.
3) Repairs to Machinery of Rs. 2,000 were wrongly debited to Purchases.
4) Depreciation on Machinery and Furniture at 10% each.
5) Interest on bank loan payable was Rs. 1,800.
