Trial Balance as on 31st March, 2003
Particulars
|
Debit (Rs.)
|
Credit (Rs.)
|
Prepaid Insurance
Insurance
R.B.D.D
Discount
Postage and Telephones
Salaries
Debtors
Creditors
Wages
Opening Stock
Carriage
Return Inward
Return Outward
Purchase and sales
Bank Overdraft
Plant and Machinery
Land and Building
Drawings:-
Agarkar
Dravid
Capitals:-
Agarkar
Dravid
|
400
1, 000
400
1, 600
28, 000
33, 000
12, 000
24, 000
500
2,800
96, 600
12, 000
88, 000
4,000
2,000
|
500
34, 000
4, 600
1, 50, 800
60, 400
30, 000
26, 000
|
3, 06, 300
|
3, 06, 300
|
Adjustments:
1. Write off Rs. 1,000 for bad debts and provide for
R.B.D.D @ 5% on debtors.
2. Goods worth Rs. 2,000 were distributed as free
samples.
3. Closing Stock 31 – 12- 2003 was valued at cost Rs. 28,
000 while its market value is Rs. 30,000/-.
4. Salaries were outstanding Rs. 1,000.
5. Depreciate Land and Building @ 5% p.a. and Plant and
Machinery @ 10% p.a.
6. Goods worth Rs. 3,000 were destroyed by fire, but
insurance company admitted the claim for Rs. 400 only.
7. Dravid had taken goods worth Rs. 1000 for his own use,
but no entry is made in the books.
ANSWER
GROSS PROFIT 53500 | NET PROFIT 9200 | BALANCE SHEET TOTAL | 153600 |
Solution:
In the books
of M/s Agarkar and Dravid
Trading
Account for the year ended 31.03.2014
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Opening Stock
|
24000
|
By Sales
|
150800
|
||
To Purchases
|
96600
|
(-) Return
|
(2800)
|
148000
|
|
(-) Return
|
(4600)
|
92000
|
By Goods distributed as free samples
|
2000
|
|
To Wages
|
12000
|
By Goods destroyed by fire
|
3000
|
||
To Carriage
|
500
|
By Goods taken over by partner Dravid
|
1000
|
||
By Closing Stock
|
28000
|
||||
To Gross Profit C/d
|
53500
|
||||
182000
|
182000
|
Profit and Loss Account for the year
ended 31.03.2014
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Insurance
|
1000
|
By Gross Profit b/d
|
53500
|
||
To Discount
|
400
|
||||
To Postage and Telephone
|
1600
|
||||
To Bad debts
|
-
|
||||
(+) F.B.D.
|
1000
|
||||
(+) N.R.D.D.
|
1600
|
||||
(-) O.R.D.D.
|
(500)
|
2100
|
|||
To Salaries
|
28000
|
||||
(+) Outstanding
|
1000
|
29000
|
|||
To Advertisement
|
2000
|
||||
To Depreciation
|
|||||
Plant and Machinery
|
1200
|
||||
Land and Building
|
4400
|
5600
|
|||
To Goods lost by fire
[3000 – 400]
|
2600
|
||||
To New Profit C/d
|
|||||
Agarkar
|
6133
|
||||
Dravid
|
3067
|
9200
|
|||
53500
|
53500
|
Partners Capital Account
Particulars
|
Agarkar
|
Dravid
|
Particulars
|
Agarkar
|
Dravid
|
To Drawings
|
4000
|
2000
|
By balance b/d
|
30000
|
26000
|
To Drawings
[Goods]
|
1000
|
By Net Profit b/d
|
6133
|
3067
|
|
To Balance c/d
|
32133
|
26067
|
|||
36133
|
29067
|
36133
|
29067
|
Balance Sheet as on 31.03.2014
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
Capital A/c
|
Prepaid Insurance
|
400
|
|||
Agarkar
|
32133
|
Debtors
|
33000
|
||
Dravid
|
26067
|
58200
|
(-) F.B.D.
|
(1000)
|
|
Bank Over draft
|
60400
|
32000
|
|||
Creditors
|
34000
|
(-) N.R.D.D.
|
(1600)
|
30400
|
|
Outstanding Salaries
|
1000
|
Plant and Machinery
|
12000
|
||
(-) Depreciation @10%
|
1200
|
10800
|
|||
Land and Building
|
88000
|
||||
(-) Depreciation
|
(4400)
|
83600
|
|||
Closing Stock
|
28000
|
||||
Insurance Claim
|
400
|
||||
153600
|
153600
|
