Answer :
Alright, let's walk through the solution to this problem step-by-step:
### Step 1: Adjust Debtors for Bad Debts and Reserve for Doubtful Debts (RDD)
1. Bad Debts to Write Off: ₹2,000
- Initial Debtors: ₹12,000
Adjusted Debtors after Bad Debts:
[tex]\[ \text{Debtors} - \text{Bad Debts} = 12,000 - 2,000 = 10,000 \][/tex]
2. Reserve for Doubtful Debts (RDD) at 5%:
[tex]\[ \text{RDD} = 10,000 \times 0.05 = 500 \][/tex]
Adjusted Debtors after RDD:
[tex]\[ \text{Adjusted Debtors} = 10,000 - 500 = 9,500 \][/tex]
### Step 2: Adjust Purchases for Unrecorded Credit Purchases
1. Unrecorded Credit Purchases: ₹5,000
- Initial Purchases: ₹25,000
Adjusted Purchases:
[tex]\[ \text{Adjusted Purchases} = 25,000 + 5,000 = 30,000 \][/tex]
### Step 3: Calculate Depreciation
1. Depreciation on Land and Building at 5%:
- Initial Value: ₹30,000
Depreciation:
[tex]\[ \text{Depreciation} = 30,000 \times 0.05 = 1,500 \][/tex]
2. Depreciation on Plant and Machinery at 10%:
- Initial Value: ₹25,000
Depreciation:
[tex]\[ \text{Depreciation} = 25,000 \times 0.10 = 2,500 \][/tex]
### Step 4: Calculate Total Outstanding Expenses
1. Outstanding Wages: ₹1,000
2. Outstanding Salaries: ₹2,000
Total Outstanding Expenses:
[tex]\[ \text{Total Outstanding Expenses} = 1,000 + 2,000 = 3,000 \][/tex]
### Step 5: Calculate Interest on Partners' Capital
- Assuming the capital values for both partners are missing, the interest would be:
[tex]\[ \text{Interest on Capital (Shriram)} = 0 \times 0.05 = 0 \][/tex]
[tex]\[ \text{Interest on Capital (Shridhar)} = 0 \times 0.05 = 0 \][/tex]
### Step 6: Adjust Wages and Salaries for Outstanding Amounts
1. Adjusted Wages:
[tex]\[ \text{Adjusted Wages} = 5,000 + 1,000 = 6,000 \][/tex]
2. Adjusted Salaries:
[tex]\[ \text{Adjusted Salaries} = 8,000 + 2,000 = 10,000 \][/tex]
### Summary of Adjustments
1. Adjusted Debtors: ₹9,500
2. Adjusted Purchases: ₹30,000
3. Depreciation on Land and Building: ₹1,500
4. Depreciation on Machinery: ₹2,500
5. Total Outstanding Expenses: ₹3,000
6. Interest on Capital (Shriram): ₹0
7. Interest on Capital (Shridhar): ₹0
8. Adjusted Wages: ₹6,000
9. Adjusted Salaries: ₹10,000
These calculations provide a comprehensive overview of the necessary adjustments and their resultant values.
### Step 1: Adjust Debtors for Bad Debts and Reserve for Doubtful Debts (RDD)
1. Bad Debts to Write Off: ₹2,000
- Initial Debtors: ₹12,000
Adjusted Debtors after Bad Debts:
[tex]\[ \text{Debtors} - \text{Bad Debts} = 12,000 - 2,000 = 10,000 \][/tex]
2. Reserve for Doubtful Debts (RDD) at 5%:
[tex]\[ \text{RDD} = 10,000 \times 0.05 = 500 \][/tex]
Adjusted Debtors after RDD:
[tex]\[ \text{Adjusted Debtors} = 10,000 - 500 = 9,500 \][/tex]
### Step 2: Adjust Purchases for Unrecorded Credit Purchases
1. Unrecorded Credit Purchases: ₹5,000
- Initial Purchases: ₹25,000
Adjusted Purchases:
[tex]\[ \text{Adjusted Purchases} = 25,000 + 5,000 = 30,000 \][/tex]
### Step 3: Calculate Depreciation
1. Depreciation on Land and Building at 5%:
- Initial Value: ₹30,000
Depreciation:
[tex]\[ \text{Depreciation} = 30,000 \times 0.05 = 1,500 \][/tex]
2. Depreciation on Plant and Machinery at 10%:
- Initial Value: ₹25,000
Depreciation:
[tex]\[ \text{Depreciation} = 25,000 \times 0.10 = 2,500 \][/tex]
### Step 4: Calculate Total Outstanding Expenses
1. Outstanding Wages: ₹1,000
2. Outstanding Salaries: ₹2,000
Total Outstanding Expenses:
[tex]\[ \text{Total Outstanding Expenses} = 1,000 + 2,000 = 3,000 \][/tex]
### Step 5: Calculate Interest on Partners' Capital
- Assuming the capital values for both partners are missing, the interest would be:
[tex]\[ \text{Interest on Capital (Shriram)} = 0 \times 0.05 = 0 \][/tex]
[tex]\[ \text{Interest on Capital (Shridhar)} = 0 \times 0.05 = 0 \][/tex]
### Step 6: Adjust Wages and Salaries for Outstanding Amounts
1. Adjusted Wages:
[tex]\[ \text{Adjusted Wages} = 5,000 + 1,000 = 6,000 \][/tex]
2. Adjusted Salaries:
[tex]\[ \text{Adjusted Salaries} = 8,000 + 2,000 = 10,000 \][/tex]
### Summary of Adjustments
1. Adjusted Debtors: ₹9,500
2. Adjusted Purchases: ₹30,000
3. Depreciation on Land and Building: ₹1,500
4. Depreciation on Machinery: ₹2,500
5. Total Outstanding Expenses: ₹3,000
6. Interest on Capital (Shriram): ₹0
7. Interest on Capital (Shridhar): ₹0
8. Adjusted Wages: ₹6,000
9. Adjusted Salaries: ₹10,000
These calculations provide a comprehensive overview of the necessary adjustments and their resultant values.
