Trial Balance as on 31st March, 2005
Particulars(Debit)
|
Amount
|
Particulars(Credit)
|
Amount
|
Opening Stock
Drawings:
Somnath
Ambadas
Insurance
Salaries and Wages
Carriage
Purchase
Bills Receivable
Rent
Debtors
Returns
Machinery
Travelling Expenses
Cash at Bank
Building
Office Expenses
Advertisement (for 3
years)
|
60000
1000
1500
600
4500
2500
65000
600
3500
18000
1000
12000
3000
1000
30000
2700
3000
|
Capital A/c
Somnath
Ambadas
Reserve Fund
Sales
Bills Payable
Creditors
Reserve for Bad and
Doubtful Debts
Returns
|
22000
18000
21600
130000
1000
16000
800
500
|
209900
|
209900
|
Adjustments:
1. Closing stock: cost Rs. 25,000 and market price Rs.
30,000.
2. Allow interest on capital at 10% p.a.
3. Prepaid insurance Rs. 50.
4. Provide for R.B.D.D. at 5% on debtors.
5. Uninsured goods costing Rs. 3000 were destroyed by
fire.
6. Outstanding expenses: Salaries Rs. 1000; Rent Rs. 500.
7. Provide depreciation on Machinery at 20%; Building 2 ½
%.
30000
|
3000
|
24700-19800
|
84600
|
GROSS
PROFIT
|
NET
PROFIT
|
PARTNERS CAPITAL ACCOUNT
BALANCE
|
BALANCE
SHEET TOTAL
|
Solution:
In the books
of M/s Somnath and Ambadas
Trading
Account for the year ended 31.03.2005
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Opening Stock
|
|
60000
|
By Sales
|
130000
|
|
|
To Purchases
|
65000
|
|
(-) Returns
|
(1000)
|
129000
|
|
(-) Returns
|
(500)
|
64500
|
By Goods lost
by fire
|
|
3000
|
|
To Carriage
|
|
2500
|
|
|
|
|
|
|
|
By Closing Stock
|
|
25000
|
|
To Gross Profit c/d
|
|
30000
|
|
|
|
|
|
|
157000
|
|
|
157000
|
Profit and Loss Account for the year
ended 31.03.2005
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Insurance
|
600
|
|
By Gross Profit B/d
|
|
30000
|
|
(-) Prepaid
|
(50)
|
550
|
|
|
|
|
To Salaries and
Wages
|
4500
|
|
|
|
|
|
(+) Outstanding
|
1000
|
5500
|
|
|
|
|
To Rent
|
3500
|
|
|
|
|
|
(+) Outstanding
|
500
|
4000
|
|
|
|
|
To Travelling
|
|
3000
|
|
|
|
|
To Office Expenses
|
|
2700
|
|
|
|
|
To Bad Debts
|
-
|
|
|
|
|
|
(+) FBD
|
-
|
|
|
|
|
|
(+) NRDD
|
900
|
|
|
|
|
|
(-) ORDD
|
(800
|
100
|
|
|
|
|
To Advertisement
|
3000
|
|
|
|
|
|
(-) Prepaid
|
(2000)
|
1000
|
|
|
|
|
To Goods lost by fire
|
|
3000
|
|
|
|
|
To Interest on Capital
|
|
|
|
|
|
|
Somnath
|
2200
|
|
|
|
|
|
Ambadas
|
1800
|
4000
|
|
|
|
|
To Depreciation
|
|
|
|
|
|
|
Building
|
750
|
|
|
|
|
|
Machinery
|
2400
|
3150
|
|
|
|
|
To Net Profit c/d
|
|
|
|
|
|
|
Somnath
|
1500
|
|
|
|
|
|
Maroti
|
1500
|
3000
|
|
|
|
|
|
|
30000
|
|
|
30000
|
Partners Current Account
|
Particulars
|
Somnath
|
Ambadas
|
Particulars
|
Somnath
|
Ambadas
|
|
To Drawings
|
1000
|
1500
|
By Balance b/d
|
22000
|
18000
|
|
To Balance C/d
|
24700
|
19800
|
By Interest on
Capital
|
2200
|
1800
|
|
|
|
|
By Net Profit b/d
|
1500
|
1500
|
|
|
25700
|
21300
|
|
25700
|
21300
|
Balance Sheet as on 31.03.2005
|
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
|
Capital A/c
|
|
|
Bills Receivable
|
|
600
|
|
Somnath
|
24700
|
|
Debtors
|
18000
|
|
|
Ambadas
|
19800
|
44500
|
(-) NRDD
|
(900)
|
17100
|
|
Reserve Fund
|
|
21600
|
Machinery
|
12000
|
|
|
Bills Payable
|
|
1000
|
(-) Depreciation
|
(2400)
|
9600
|
|
Creditors
|
|
16000
|
Cash at bank
|
|
1000
|
|
Outstanding salary
|
1000
|
|
Building
|
30000
|
|
|
Outstanding Rent
|
500
|
1500
|
(-) Depreciation
|
(750)
|
29250
|
|
|
|
|
Closing Stock
|
|
25000
|
|
|
|
|
Prepaid Insurance
|
|
50
|
|
|
|
|
Prepaid Advertisement
|
|
2000
|
|
|
|
84600
|
|
|
84600
|
