Answer :
Let's solve the problem step-by-step, incorporating all the adjustments and calculations.
### 1. Closing Stock
The closing stock is valued at ₹30,000. This amount needs to be added to the Trial Balance.
### 2. Credit Purchases
Credit purchases amounting to ₹5,000 were not recorded. This needs to be added.
### 3. Outstanding Expenses
There are outstanding expenses:
- Wages: ₹1,000
- Salaries: ₹2,000
These amounts should be added to the Trial Balance.
### 4. Bad Debts and R.D.D.
- Write off bad debts: ₹2,000
- Maintain R.D.D. at 5% on debtors. Debtors amount is ₹12,000, so:
[tex]\[ \text{RDD} = 12,000 \times 0.05 = ₹600 \][/tex]
### 5. Depreciation
- Depreciate Land and Building at 5%:
[tex]\[ 30,000 \times 0.05 = ₹1,500 \][/tex]
- Depreciate Machinery at 10%:
[tex]\[ 50,000 \times 0.10 = ₹5,000 \][/tex]
### 6. Interest on Partners' Capital
Provide interest on partners' capital at 5% per annum:
- Capital of Shriram: ₹40,000
- Interest:
[tex]\[ 40,000 \times 0.05 = ₹2,000 \][/tex]
- Capital of Shridhar: ₹30,000
- Interest:
[tex]\[ 30,000 \times 0.05 = ₹1,500 \][/tex]
### Compilation of Adjustments and Results
1. RDD Amount: ₹600
2. Depreciation on Land and Building: ₹1,500
3. Depreciation on Machinery: ₹5,000
4. Interest on Shriram's Capital: ₹2,000
5. Interest on Shridhar's Capital: ₹1,500
6. Net Bad Debts: ₹2,000
7. Closing Stock: ₹30,000
8. Credit Purchases: ₹5,000
9. Outstanding Wages: ₹1,000
10. Outstanding Salary: ₹2,000
### Final Adjusted Values
The final adjusted values are as follows:
- RDD Amount: ₹600
- Depreciation Land and Building: ₹1,500
- Depreciation Machinery: ₹5,000
- Interest on Shriram's Capital: ₹2,000
- Interest on Shridhar's Capital: ₹1,500
- Net Bad Debts: ₹2,000
- Closing Stock: ₹30,000
- Credit Purchases: ₹5,000
- Outstanding Wages: ₹1,000
- Outstanding Salary: ₹2,000
These adjustments must be incorporated into the books to get the final financial statements.
### 1. Closing Stock
The closing stock is valued at ₹30,000. This amount needs to be added to the Trial Balance.
### 2. Credit Purchases
Credit purchases amounting to ₹5,000 were not recorded. This needs to be added.
### 3. Outstanding Expenses
There are outstanding expenses:
- Wages: ₹1,000
- Salaries: ₹2,000
These amounts should be added to the Trial Balance.
### 4. Bad Debts and R.D.D.
- Write off bad debts: ₹2,000
- Maintain R.D.D. at 5% on debtors. Debtors amount is ₹12,000, so:
[tex]\[ \text{RDD} = 12,000 \times 0.05 = ₹600 \][/tex]
### 5. Depreciation
- Depreciate Land and Building at 5%:
[tex]\[ 30,000 \times 0.05 = ₹1,500 \][/tex]
- Depreciate Machinery at 10%:
[tex]\[ 50,000 \times 0.10 = ₹5,000 \][/tex]
### 6. Interest on Partners' Capital
Provide interest on partners' capital at 5% per annum:
- Capital of Shriram: ₹40,000
- Interest:
[tex]\[ 40,000 \times 0.05 = ₹2,000 \][/tex]
- Capital of Shridhar: ₹30,000
- Interest:
[tex]\[ 30,000 \times 0.05 = ₹1,500 \][/tex]
### Compilation of Adjustments and Results
1. RDD Amount: ₹600
2. Depreciation on Land and Building: ₹1,500
3. Depreciation on Machinery: ₹5,000
4. Interest on Shriram's Capital: ₹2,000
5. Interest on Shridhar's Capital: ₹1,500
6. Net Bad Debts: ₹2,000
7. Closing Stock: ₹30,000
8. Credit Purchases: ₹5,000
9. Outstanding Wages: ₹1,000
10. Outstanding Salary: ₹2,000
### Final Adjusted Values
The final adjusted values are as follows:
- RDD Amount: ₹600
- Depreciation Land and Building: ₹1,500
- Depreciation Machinery: ₹5,000
- Interest on Shriram's Capital: ₹2,000
- Interest on Shridhar's Capital: ₹1,500
- Net Bad Debts: ₹2,000
- Closing Stock: ₹30,000
- Credit Purchases: ₹5,000
- Outstanding Wages: ₹1,000
- Outstanding Salary: ₹2,000
These adjustments must be incorporated into the books to get the final financial statements.
