Question

Where will you disclose the following items given in a trial balance during the preparation of a final account of a partnership firm :

(1) Bad debts returned

(2) Depreciation : factory’s building

(3) Wages and salary

(4) Providend fund investments

(5) Bills payable

(6) Goods withdrawn as drawings

(7) Goods return credit

(8) Goods return debit

(9) Loan given to firm by a partner

(10) Interest on investments of providend fund.

Answer 1

Name of Account	Recorded in account or statement
(1) Bad debts return	– Credit side of Profit and Loss Account.
(2) Depreciation : Factory’s building	– Debit side of Trading Account
(3) Wages and salary	– Debit side of Trading Account
(4) Providend fund investments	– Asset side of Balance Sheet
(5) Bills payable	– Capital liability side of Balance sheet
(6) Goods withdrawn as drawings	– Will be deducted from purchase of Trading Accountdebit side
(7) Goods return	– Will be deducted from sales, on the credit side of Trading Account.
(8) Goods return	– Will be deducted from purchase, on the debit side of Trading Account.
(9) Loan given to firm by a partner.	– Capital- Liability side of Balance sheet
(10) Interest on investments of Providend fund	– Capital-Liability side of Balance sheet, will be added to Providend fund account