Partnership Accounting

Step 1: Prepare the Profit and Loss Account for the year ended 31st March 2020.
We begin with the gross profit, which is already given as ₹69,000. Adjustments like depreciation, bad debts, and interest will be made as we proceed. Expenses: - Salaries: ₹10,000 - Insurance: ₹30,000 (paid for 15 months from 1st April 2019) The portion relating to the current year (12 months) = - Depreciation on Land and Building: 10% of ₹1,00,000 (since the addition is made on 1st July 2019, we take half-year depreciation) = ₹5,000 - Depreciation on Furniture: 5% of ₹80,000 = ₹4,000 - Bad Debts (₹2,000) and R.D.D. (5% of ₹52,000 Debtors = ₹2,600) Profit and Loss Account for the year ended 31st March 2020

Step 2: Prepare the Balance Sheet as on 31st March 2020.
The Balance Sheet includes assets and liabilities adjusted for depreciation, bad debts, and capital balances. Balance Sheet as on 31st March 2020

Final Answer: \text{(a) The Profit and Loss Account shows a net profit of ₹41,400.} \text{(b) The Balance Sheet as on 31st March 2020 is balanced at ₹2,79,000.}