M/s Sagar and Boond are a firm of solicitors whose partners Anand and Ashok share profits in equal shares after charging a management fee of 5% there of to Anand. For the year ended on Mar 31, 2008, the books maintained by the firm reveal the following particulars.
|
Capital |
33,000 |
Office Rent |
12,000 |
|
Drawings Anand |
20,000 |
Office Expenses |
3400 |
|
Ashok |
18,000 |
Furniture and Life Books |
24400 |
|
Life Insurance Premium |
Clients Disbursements |
2400 |
|
|
Paid: Anand |
6,000 |
Amount owing by Clients for bills |
17,200 |
|
Ashok |
12,000 |
of cost rendered |
|
|
Salaries to Staff and Juniors |
46,000 |
Profit Costs |
1,42,000 |
|
Amounts received from clients on Accounts |
32,000 |
Fixed Deposits with Bank |
15,000 |
|
of pending matter |
Bank Amounts: Clients |
31,800 |
|
|
Salary debts owing by firm |
3,400 |
Office |
6400 |
|
Reserve against bills of costs not collected with work in progress as on Apr 1,2007 |
5,000 |
Work in progress on Mar 31,2008 |
8,200 |
The following additional information is also available.
- 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 charges, etc. debited 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 3,200 had not been charged to clients in bills of costs. If Rs 200 was received and credited to their accounts in the year.
Required: Prepare Receipts and Expenditure Account of the firm for the year ended on Mar 31, 2008 and a Balance Sheet on that date.