7. Madhuri and Minakshi are in a partnership sharing profits and losses in the ratio 3:2. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet on that date.
Adjustments:
1) Stock on hand on 31st March, 2010 was valued at Rs. 1,10,000.
2) Depreciate Plant and Machinery at 10% p.a. and Building at 5% p.a.
3) Prepaid insurance Rs. 1,500.
4) Create R.D.D at 5% on Sundry Debtors.
5) Partners are allowed interest at 5% p.a. on their capitals. 6) Salaries include Rs. 2,500 as advance to workers.
