Dr. Trial Balance as on 31st March
2007
Cr.
Particulars
|
Amt.Rs.
|
Particulars
|
Amt. Rs.
|
|||
Opening Stock
|
45,000
|
Capital A/c
|
||||
Purchases
|
2,25,000
|
Kamlesh
|
25,000
|
|||
Plant and
Machinery
|
75,000
|
Mahajan
|
20,000
|
|||
Carriage
|
16,800
|
Sales
|
4,50,000
|
|||
Factory Rent
|
1,500
|
Discount
Received
|
750
|
|||
Insurance
|
1,050
|
Sundry Creditors
|
15,000
|
|||
Sundry Debtors
|
60,000
|
Bad debts
Reserve
|
200
|
|||
Office Rent
|
3,000
|
Bills Payable
|
2,000
|
|||
Printing &
Stationery
|
600
|
|||||
Advertisement
|
15,000
|
|||||
Bills Receivable
|
3,000
|
|||||
Drawings: Kamlesh
|
3,500
|
|||||
Mahajan
|
2,500
|
|||||
Salaries
|
18,000
|
|||||
Wages
|
20,000
|
|||||
Furniture
|
7,500
|
|||||
Royalty
|
1,000
|
|||||
Cash at Bank
|
14,500
|
|||||
5,12,950
|
5,12,950
|
The following adjustments are required:
(1)
Closing stock was valued at Cost price Rs. 35,000
and Market Price 40,000.
(2)
Plant– Machinery & Furniture are to be depreciated at 6% &
10% p.a respectively.
(3)
Maintain Reserve for Doubtful Debts @ 2 ½ % on Sundry Debtors.
(4)
Outstanding Expenses: Factory Rent Rs. 300;
Office Rent Rs. 600.
(5)
Interest on capital to be allowed at 6% p.a.
(6)
Prepaid insurance was Rs. 100.
175400
|
129650
|
87825-83525
|
189250
|
GROSS
PROFIT
|
NET
PROFIT
|
PARTNERS CAPITAL ACCOUNT
BALANCE
|
BALANCE
SHEET TOTAL
|
Solution:
In the books
of M/s Kamlesh and Mahajan
Trading
Account for the year ended 31.03.2014
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Opening stock
|
45000
|
By Sales
|
450000
|
||
|
To Purchases
|
225000
|
||||
|
To Carriage
|
16800
|
||||
|
To Factory Rent
|
1500
|
||||
|
(+) Outstanding
|
300
|
1800
|
|||
|
To Wages
|
20000
|
||||
|
To Royalty
|
1000
|
By Closing Stock
|
35000
|
||
|
To Gross Profit c/d
|
175400
|
||||
|
|
|
485000
|
|
|
485000
|
Profit and Loss Account for the year
ended 31.03.2014.
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Insurance
|
1050
|
By Gross Profit b/d
|
175400
|
||
(-) Prepaid
|
(100)
|
950
|
By Discount Received
|
750
|
|
To Office Rent
|
3000
|
||||
(+) Outstanding
|
600
|
3600
|
|||
To Printing and Stationery
|
600
|
||||
To Advertisement
|
15000
|
||||
To Salaries
|
18000
|
||||
To Bad debts
|
-
|
||||
(+) FBD
|
-
|
||||
(+) NRDD
|
1500
|
||||
(-) ORDD
|
(200)
|
1300
|
|||
To Depreciation
|
|||||
Plant and Machinery
|
4500
|
||||
Furniture
|
750
|
5250
|
|||
To Interest on Capital
|
|||||
Kamlesh
|
1500
|
||||
Mahajan
|
1200
|
2700
|
|||
To Net Profit C/d
|
|||||
Kamlesh
|
64375
|
||||
Mahajan
|
64375
|
128750
|
|||
176150
|
176150
|
Partners Capital Account
Particulars
|
Kamlesh
|
Mahajan
|
Particulars
|
Kamlesh
|
Mahajan
|
To Drawings
|
3500
|
2500
|
By Balance b/d
|
25000
|
20000
|
By interest on Capital
|
1500
|
1200
|
|||
By Net Profit b/d
|
64375
|
64375
|
|||
To Balance c/d
|
87375
|
83075
|
|||
90875
|
85575
|
90875
|
85575
|
Balance Sheet as on 31.03.2014
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
Capital
|
Plant & Machinery
|
75000
|
|||
Kamlesh
|
87375
|
(-) Depreciation @ 6%
|
(4500)
|
70500
|
|
Mahajan
|
83075
|
170450
|
Sundry Debtors
|
60000
|
|
Sundry Creditors
|
15000
|
(-) NRDD
|
(1500)
|
58500
|
|
Bills Payable
|
2000
|
Bills Receivable
|
3000
|
||
Outstanding Expenses
|
Furniture
|
7500
|
|||
Factory Rent
|
300
|
(-) Depreciation @10%
|
(750)
|
6750
|
|
Office Rent
|
600
|
900
|
Cash at bank
|
14500
|
|
Closing Stock
|
35000
|
||||
Prepaid Insurance
|
100
|
||||
188350
|
188350
|
