OMTEX CLASSES: From the following information you are required to prepare the Trading account, profit and loss account and Balance sheet as on 31st March, 2005.

Trial Balance as on 31^st March, 2005

Particulars	Debit (Rs.)	Credit (Rs.)
Sachin’s Capital Ganguly’s capital Sachin’s Drawing Ganguly’s Drawing Stock on 1 – 1 – 2004 Bills Receivable Purchases Sales Bills Payable Return In ward Return Outward Plant and Machinery Loose Tools Patents Sundry Debtors Sundry Creditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Stationery Power and Fuel	4, 000 1, 000 2, 20, 000 5, 000 2, 95, 000 5, 000 1, 00, 000 24, 000 25, 000 1, 25, 000 77, 550 19, 000 17, 500 7, 950 3, 000 2, 000 3, 500	1, 00, 000 2, 30, 000 2, 00, 000 1, 60, 000 4, 500 2, 40, 000
	9, 34, 500	9, 34, 500

Adjustment

1. Stock on 31^st March, 2004 is valued at Rs. 30,000 but is market value is Rs. 35,000.

2. Depreciate plant and machinery @ 5% p.a. Patents by 20%.

3. Insurance were prepaid for Rs. 200.

4. Salaries outstanding amounted to Rs. 800.

5. Maintain Reserve for Doubtful debts at 10% of Sundry debtors.

6. Goods worth Rs. 5000 were destroyed by fire and the insurance company admitted a claim for Rs. 3000 only.

7. Sachin has withdrawn goods worth Rs. 500 for his own use, but no entry is passed in the books.

ANSWER

GROSS LOSS -302500

Solution:

In the books of M/s Sachin and Ganguly

Trading Account for the year ended 31.03.2014

Particulars	Amt.	Amt.	Particulars	Amt.	Amt.
To Opening Stock		220000	By Sales	200000
To Purchases	295000		(-) Return	(5000)	195000
(-) Return	(4500)	290500	By Goods withdrawn by Partner Sachin		500
To Wages		19000	By Goods destroyed by fire		5000
To Power and Fuel		3500	By Closing Stock		30000
			By Gross Loss c/d		302500
		527200			527200

Profit and Loss Account for the year ended 31.03.2014

Partners Capital Account

Balance Sheet as on 31.03.2014