Answer :
To solve this problem, let's prepare the detailed final accounts considering the adjustments provided.
1. Trading Account for the year ending 31st March, 2007:
[tex]\[ \begin{array}{|c|r|c|r|} \hline \text{Particulars} & \text{Amount (₹)} & \text{Particulars} & \text{Amount (₹)} \\ \hline \text{To Opening Stock} & 25,000 & \text{By Sales} & 2,50,000 \\ \text{To Purchases} & 1,65,000 & \text{By Closing Stock} & 13,000 \\ \text{Less: Returns Outwards} & 3,000 & & \\ \hline \text{To Net Purchases} & \text{1,62,000} & \\ \text{To Wages} & 20,000 & \\ \text{To Gross Profit c/d} & \text{73,000} & & \\ \hline \text{Total} & 2,80,000 & \text{Total} & 2,80,000 \\ \hline \end{array} \][/tex]
Gross Profit Transferred to Profit and Loss Account: ₹ 73,000
2. Profit and Loss Account for the year ending 31st March, 2007:
[tex]\[ \begin{array}{|c|r|c|r|} \hline \text{Particulars} & \text{Amount (₹)} & \text{Particulars} & \text{Amount (₹)} \\ \hline \text{To Salaries} & 8,000 & \text{By Gross Profit b/d} & 73,000 \\ \text{To Insurance} & 3,500 & \\ \text{To Rent and Taxes} & 4,000 & \text{By Interest on Investment} & 720 \\ \text{To Partners' Salary} & 3,000 & \\ \text{To Repairs} & 1,200 & \\ \text{To Depreciation on Furniture (12\%)} & 960 & \\ \text{To Depreciation on Building (10\%)} & 4,400 & \\ \text{To Reserve for Doubtful Debts} & 2,950 & \\ \text{To Bad Debts} & 1,000 & \\ \text{To Net Profit transferred to Capitals} & 24,990 & \\ \hline \text{Total} & 54,000 & \text{Total} & 73,720 \\ \hline \end{array} \][/tex]
Net Profit Transferred to Partners' Capital: ₹ 24,990
3. Balance Sheet as at 31st March, 2007:
[tex]\[ \begin{array}{|c|r|c|r|} \hline \text{Liabilities} & \text{Amount (₹)} & \text{Assets} & \text{Amount (₹)} \\ \hline \text{Creditors} & 25,000 & \text{Cash in Hand} & 8,820 \\ \text{Bills Payable} & 14,000 & \text{Bills Receivable} & 10,000 \\ \text{Abhijit's Capital} & 2,50,000 & \text{Debtors (60,000 - 1,000)} & 59,000 \\ \text{Vikram's Capital} & 7,800 & \text{Less: Reserve for Doubtful Debts (5\%)} & (2,950) \\ \text{Pawan's Capital} & 3,000 & \text{Net Debtors} & 56,050 \\ \text{Abhijit's Current Account} & 2,000 & \text{Loan to Vijay} & 2,000 \\ \text{Commission Reserve} & 1,000 & \text{Investment} & 10,000 \\ \text{Net Profit} & 24,990 & \text{Closing Stock} & 13,000 \\ & & \text{Furniture (8,000 - 960)} & 7,040 \\ & & \text{Building (44,000 - 4,400)} & 39,600 \\ \hline \text{Total} & 3,27,790 & \text{Total} & 3,27,790 \\ \hline \end{array} \][/tex]
Thus, the final accounts including the Trading Account, the Profit and Loss Account, and the Balance Sheet have been prepared considering all adjustments with detailed steps, producing the comprehensive financial statements for the partnership firm as at 31st March, 2007.
1. Trading Account for the year ending 31st March, 2007:
[tex]\[ \begin{array}{|c|r|c|r|} \hline \text{Particulars} & \text{Amount (₹)} & \text{Particulars} & \text{Amount (₹)} \\ \hline \text{To Opening Stock} & 25,000 & \text{By Sales} & 2,50,000 \\ \text{To Purchases} & 1,65,000 & \text{By Closing Stock} & 13,000 \\ \text{Less: Returns Outwards} & 3,000 & & \\ \hline \text{To Net Purchases} & \text{1,62,000} & \\ \text{To Wages} & 20,000 & \\ \text{To Gross Profit c/d} & \text{73,000} & & \\ \hline \text{Total} & 2,80,000 & \text{Total} & 2,80,000 \\ \hline \end{array} \][/tex]
Gross Profit Transferred to Profit and Loss Account: ₹ 73,000
2. Profit and Loss Account for the year ending 31st March, 2007:
[tex]\[ \begin{array}{|c|r|c|r|} \hline \text{Particulars} & \text{Amount (₹)} & \text{Particulars} & \text{Amount (₹)} \\ \hline \text{To Salaries} & 8,000 & \text{By Gross Profit b/d} & 73,000 \\ \text{To Insurance} & 3,500 & \\ \text{To Rent and Taxes} & 4,000 & \text{By Interest on Investment} & 720 \\ \text{To Partners' Salary} & 3,000 & \\ \text{To Repairs} & 1,200 & \\ \text{To Depreciation on Furniture (12\%)} & 960 & \\ \text{To Depreciation on Building (10\%)} & 4,400 & \\ \text{To Reserve for Doubtful Debts} & 2,950 & \\ \text{To Bad Debts} & 1,000 & \\ \text{To Net Profit transferred to Capitals} & 24,990 & \\ \hline \text{Total} & 54,000 & \text{Total} & 73,720 \\ \hline \end{array} \][/tex]
Net Profit Transferred to Partners' Capital: ₹ 24,990
3. Balance Sheet as at 31st March, 2007:
[tex]\[ \begin{array}{|c|r|c|r|} \hline \text{Liabilities} & \text{Amount (₹)} & \text{Assets} & \text{Amount (₹)} \\ \hline \text{Creditors} & 25,000 & \text{Cash in Hand} & 8,820 \\ \text{Bills Payable} & 14,000 & \text{Bills Receivable} & 10,000 \\ \text{Abhijit's Capital} & 2,50,000 & \text{Debtors (60,000 - 1,000)} & 59,000 \\ \text{Vikram's Capital} & 7,800 & \text{Less: Reserve for Doubtful Debts (5\%)} & (2,950) \\ \text{Pawan's Capital} & 3,000 & \text{Net Debtors} & 56,050 \\ \text{Abhijit's Current Account} & 2,000 & \text{Loan to Vijay} & 2,000 \\ \text{Commission Reserve} & 1,000 & \text{Investment} & 10,000 \\ \text{Net Profit} & 24,990 & \text{Closing Stock} & 13,000 \\ & & \text{Furniture (8,000 - 960)} & 7,040 \\ & & \text{Building (44,000 - 4,400)} & 39,600 \\ \hline \text{Total} & 3,27,790 & \text{Total} & 3,27,790 \\ \hline \end{array} \][/tex]
Thus, the final accounts including the Trading Account, the Profit and Loss Account, and the Balance Sheet have been prepared considering all adjustments with detailed steps, producing the comprehensive financial statements for the partnership firm as at 31st March, 2007.
