Trial Balance as on 31st March, 2004.
Particulars
(Debit)
|
Rs.
|
Particulars
(Credit)
|
Rs.
|
Partner's
Current A/c
|
Partners Capital
Account
|
||
Radha
|
16000
|
Radha
|
80000
|
Partner's
Drawings
|
Krishna
|
50000
|
|
Radha
|
15000
|
Partners Current
Account
|
|
Krishna
|
10000
|
Krishna
|
10000
|
Purchases
|
120000
|
Sales
|
365000
|
Returns
|
2500
|
Returns
|
3500
|
Debtors
|
65000
|
Creditors
|
10000
|
Furniture
|
50000
|
RDD
|
2000
|
Premises
|
160000
|
Provident fund
|
65000
|
Bad debts
|
7500
|
Interest on P.F.
Investment
|
6000
|
Discount
|
5000
|
Outstanding
Salaries
& Wages
|
6500
|
Provident Fund
Contribution
|
15000
|
General Reserve
|
45003
|
Provident Fund
Investment
|
60000
|
||
Salaries & Wages
|
15003
|
||
Opening Stock
|
80000
|
||
Cash in hand
|
18000
|
||
Royalties
|
4000
|
||
643003
|
643003
|
1.
The closing stock was valued at market price Rs.
90,000 which is 20% above cost.
2.
Write off bad debts Rs. 1500 and make a provision
for doubtful debts @5% on debtors.
3.
Provide 2% Reserve for discount on debtors and
creditors.
4.
Interest on capital is allowed @ 10% p.a. and
interest on drawings be charged @ 15% p.a.
5.
Radha is entitled to receive rent for her premises
at Rs. 300 p.m. where business is carried out and Krishna is to be given 5% commission
on ‘Gross Profit’.
Solution:
In the
books of M/s Radha and Krishna
Trading
Account for the year ended 31.03.2004
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To
Opening Stock
|
80000
|
By Sales
|
365000
|
||
To
Purchases
|
120000
|
(-)
Returns
|
-2500
|
362500
|
|
(-)
Returns
|
-3500
|
116500
|
|||
To
Royalties
|
4000
|
||||
To Gross
Profit C/d
|
237000
|
By
Closing Stock
|
75000
|
||
437500
|
437500
|
Profit
and Loss Account for the year ended 31.03.2004
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Bad
Debts
|
7500
|
By Gross
Profit b/d
|
237000
|
||
(+)
F.B.D.
|
1500
|
By
Discount on Creditors
|
200
|
||
(+)
N.R.D.D.
|
3175
|
By
Interest on Drawings
|
|||
(-)
O.R.D.D.
|
-2000
|
10175
|
Radha
|
1125
|
|
To
Discount
|
5000
|
Krishna
|
750
|
1875
|
|
To
Provident fund Contribution
|
15000
|
||||
To
Salaries & Wages
|
15003
|
||||
To
Discount on Debtors
|
1207
|
||||
To
Interest on Capital
|
|||||
Radha
|
8000
|
||||
Krishna
|
5000
|
13000
|
|||
To rent
on premises to Partner Radha
[Rs. 300
× 12 Months]
|
3600
|
||||
To
Commission on G.P. to Krishna
|
11850
|
||||
To Net
Profit c/d
|
|||||
Radha
|
98544
|
||||
Krishna
|
65696
|
164240
|
|||
239075
|
239075
|
Partners Current Account
Particulars
|
Radha
|
Krishna
|
Particulars
|
Radha
|
Krishna
|
To
Balance b/d
|
16000
|
-
|
By
Balance b/d
|
-
|
10000
|
To
Drawings
|
15000
|
10000
|
By
Interest on Capital
|
8000
|
5000
|
To
Interest on Drawings
|
1125
|
750
|
BY
Commission on G.P.
|
-
|
11850
|
By Rent
on Premises
|
3600
|
-
|
|||
To
Balance C/d
|
78019
|
81796
|
By Net
Profit C/d
|
98544
|
65696
|
110144
|
92546
|
110144
|
92546
|
Balance
Sheet as on 31.03.2004
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
Capital
A/c
|
Debtors
|
65000
|
|||
Radha
|
80000
|
(-)
F.B.D.
|
-1500
|
||
Krishna
|
50000
|
130000
|
63500
|
||
Current
A/c
|
(-)
N.R.D.D.
|
3175
|
|||
Radha
|
78019
|
60325
|
|||
Krishna
|
81796
|
(-)
Discount
|
-1207
|
59118
|
|
Creditors
|
10000
|
Furniture
|
50000
|
||
(-)
Discount
|
200
|
9800
|
Provident
Fund Investments
|
60000
|
|
Provident
Fund
|
65000
|
Cash in
Hand
|
18000
|
||
(+)
Interest on Provident Fund Investments
|
6000
|
71000
|
Closing
Stock
|
75000
|
|
Outstanding
Salaries & Wages
|
6500
|
Premises
|
160000
|
||
General
Reserve
|
45003
|
||||
422118
|
422118
|
