|
Particulars
|
Debit Rs.
|
Credit Rs.
|
|
Stock (1-4-2006)
|
80000
|
|
|
Purchases
& Sales
|
400000
|
768000
|
|
Return Inward
|
30000
|
|
|
Carriage
|
7500
|
|
|
Power
& Fuel
|
40000
|
|
|
Wages
|
35000
|
|
|
Trade Expenses
|
8000
|
|
|
Debtors
and Creditors
|
80000
|
60000
|
|
Salaries
|
72000
|
|
|
Insurance
|
6000
|
|
|
Postage
|
6000
|
|
|
Commission
|
8000
|
12000
|
|
Plant
& Machinery
|
200000
|
|
|
Furniture
|
80000
|
|
|
Advertisement
|
15000
|
|
|
Building
|
400000
|
|
|
Drawings
|
|
|
|
Ganga
|
8000
|
|
|
Godawari
|
10000
|
|
|
Capital
|
|
|
|
Ganga
|
|
250000
|
|
Godawari
|
|
250000
|
|
12% Bank
loan
taken on
1.10.2006
|
|
150000
|
|
Cash in
hand
|
7500
|
|
|
|
1490000
|
1490000
|
Adjustments:
1.
Stock on 31.3.2007 was valued at Cost price Rs. 1,00,000 and Market price
Rs. 1,20,000.
2.
Depreciate plant and Machinery and Buildings at 20% and 10% respectively.
3.
Insurance is paid for one year ending on 30.06.2007.
4.
Goods withdrawn by Ganga for her personal use of Rs. 10,000 during the
year were not recorded in the books.
5.
Provide Rs. 10,000 as Bad debts and Reserve for Doubtful Debts is to be
maintained at 5% on Debtors.
Prepare : Trading Account, Profit and Loss
Account for the year ending on 31st March, 2007 and Balance
Sheet as on that date after making the above adjustments.
Solution:
In the books
of M/s Ganga & Godawari
Trading Account
for the year ended 31.03.2007
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Opening stock
|
|
80000
|
By Sales
|
768000
|
|
|
To Purchases
|
|
400000
|
(-) Return
|
-30000
|
738000
|
|
To Carriage
|
|
7500
|
By Goods withdrawn by the Partner Ganga
|
|
10000
|
|
To Power and Fuel
|
|
40000
|
|
|
|
|
To Wages
|
|
35000
|
|
|
|
|
To Gross Profit C/d
|
|
285500
|
By Closing Stock
|
|
100000
|
|
|
|
848000
|
|
|
848000
|
Profit and Loss Account for the year
ended 31.03.2007
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Trade Expenses
|
|
8000
|
By Gross Profit b/d
|
|
285500
|
|
To Salaries
|
|
72000
|
By Commission
|
|
12000
|
|
To Insurance
|
6000
|
|
|
|
|
|
(-) Prepaid
|
-1500
|
4500
|
|
|
|
|
To Postage
|
|
3000
|
|
|
|
|
To Commission
|
|
8000
|
|
|
|
|
To Advertisement
|
|
15000
|
|
|
|
|
To Depreciation
|
|
|
|
|
|
|
Plant and machinery
|
40000
|
|
|
|
|
|
Building
|
40000
|
80000
|
|
|
|
|
To Bad Debts
|
-
|
|
|
|
|
|
(+)F.B.D.
|
10000
|
|
|
|
|
|
(+) N.R.D.D.
|
3500
|
|
|
|
|
|
(-) O.R.D.D.
|
-
|
13500
|
|
|
|
|
To Interest on Bank Loan
|
|
9000
|
|
|
|
|
To Net Profit
|
|
|
|
|
|
|
Ganga
|
42250
|
|
|
|
|
|
Godawari
|
42250
|
84500
|
|
|
|
|
|
|
292500
|
|
|
292500
|
Partners Current Account
|
Particulars
|
Ganga
|
Godawari
|
Particulars
|
Ganaga
|
Godawari
|
|
To Drawings
|
8000
|
10000
|
By Balance b/d
|
250000
|
250000
|
|
To Drawings
[Goods]
|
10000
|
-
|
By Net Profit b/d
|
42250
|
42250
|
|
To Balance C/d
|
274250
|
282250
|
|
|
|
|
|
292250
|
292250
|
|
292250
|
292250
|
Balance Sheet as on 31.12.1997
|
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
|
Capital A/c
|
|
|
Debtors
|
80000
|
|
|
Ganga
|
274250
|
|
(-) F.B.D.
|
-10000
|
|
|
Godawari
|
282250
|
556500
|
|
70000
|
|
|
Creditors
|
|
60000
|
(-) N.R.D.D.
|
-3500
|
66500
|
|
12% Bank Loan
|
150000
|
|
Plant & Machinery
|
200000
|
|
|
(+) Interest
|
9000
|
159000
|
(-) Depreciation
|
-40000
|
160000
|
|
|
|
|
Furniture
|
|
80000
|
|
|
|
|
Building
|
400000
|
|
|
|
|
|
(-) Depreciation
|
-40000
|
360000
|
|
|
|
|
Cash
in hand
|
|
7500
|
|
|
|
|
Closing
Stock
|
|
100000
|
|
|
|
|
Prepaid
Insurance
|
|
1500
|
|
|
|
775500
|
|
|
775500
|
