Shree & Co is a firm of solicitors whose partners Vasanth and Sekar share profits equally after charging a management fee of 5% from the Vasanth for the year ended on Mar 31, 2009, the books maintained by the firm reveal the following particulars.
|
Receipts |
Payments |
|||
|
Capital |
66000 |
Salary debuts owing by the farm |
6800 |
|
|
Drawings Vacant Sekhar |
36 000 |
Office Rent |
24000 |
|
|
L.I.C. Premium Paid – |
12,000 |
Office Expenses |
7200 |
|
|
Vasanth |
24,000 |
Furniture and Library Rooks |
49,200 |
|
|
Sekhar |
9000 |
Clients Disbursements |
5200 |
|
|
Salaries to Juniors and Clerks |
64000 |
Amount owing by clients for bills of cost rendered |
34400 |
|
|
Amount received from |
10,000 |
|||
|
Receipts |
Rs |
Payments |
Rs |
|
Pending Matters |
Profit Cost |
284000 |
|
|
Reserve against bills of cost |
Fixed sits with Bank |
30000 |
|
|
not collected with work in progress as on Apr 1, 2008 |
Bank Accounts Clients |
63,600 |
|
|
Office |
13,200 |
||
|
Work in progress on Mar 31, 2009 |
16,400 |
Information
- Capital accounts of partners at the beginning of the year were of equal amounts.
- Included in the bills of costs sent to clients are sundry disbursements like postage, telephone, etc. defied in the books of office expenses account. At the end of the year, items on the debit side of clients disbursements account, amounting to Rs 6,400, had not been charged to clients in bills of costs of these Rs 400 was received and credited to their accounts in the year.
You are required to prepare the Receipts and Expenditure Account for the year ended on Mar 2009 and a Balance Sheet of the firm on that date.