OMTEX CLASSES: From the following Trial Balance of M/s Kale and Gore your are required to prepare Trading and Profit and Loss account for the year ended 31st March, 2014 and the Balance sheet as on that date after taking into account the necessary adjustments. Trial Balance as on 31st March, 2014.

Particulars	Debit (Rs.)	Credit (Rs.)
Kale’s Capital Gore’s capital Kale’s Drawing Gore’s Drawing Stock on 1 – 4 – 2013 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	14, 450 10, 000 2, 00,000 25, 000 2, 75, 000 5, 000 1, 00, 000 25, 000 25, 000 55, 000 47, 550 19, 000 17, 500 7, 500 3, 000 2, 000 3, 500	1, 80, 000 1, 50, 000 4, 00, 000 60, 000 4, 500 40, 000
	8, 34, 500	8, 34, 500

Adjustments:

1. Depreciate Plant and Machinery by 5% and Patents by 15%.

2. Provide for Bad and Doubtful debts @ 5% on Sundry debtors.

3. Prepaid Insurance Rs. 750

4. Outstanding expenses : a. Salaries Rs. 2,500 b. Wages Rs. 1,000 c. Printing and Stationery Rs. 500.

5. Stock as at 31^st March 2014 Rs. 1,30,000.

6. Kale and Gore have taken goods worth Rs. 2,000 and Rs. 3,000 respectively for their personal use. No entry has been passed in the books.

36000	-7750	159675-133125	396800
GROSS PROFIT	NET PROFIT	PARTNERS CAPITAL ACCOUNT BALANCE	BALANCE SHEET TOTAL

Solution:

In the books of M/s Kale and Gore

Trading Account for the year ended 31.03.2014

Particulars	Amt.	Amt.	Particulars	Amt.	Amt.
To Opening Stock		200000	By Sales	400000
To Purchases	275000		(-) Return	(5000)	395000
(-) Return	(4500)	270500	By Goods taken over by Partners
To Wages	19000		Kale	2000
(+) Outstanding	1000	20000	Gore	3000	5000
To Power and Fuel		3500	By Closing Stock		130000
To Gross Profit C/d		36000
		530000			530000

Profit and Loss Account for the year ended 31.03.2014

Partners Capital Account

Balance Sheet as on 31.03.2014

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