Trial Balance as on 31st March, 1998
Particulars
(Debit)
|
Amount
|
Particulars
(Credit)
|
Amount
|
Land and
Building
Plant(Addition
on 1st
Jan.98,Rs.3,000)
Drawings
Pradeep
Prashant
Opening
Stock
Freight
Purchases
Carriage
Office
Expenses
Rent,
Rates & Taxes
Insurance
Motor van
Salaries
Bad debts
Customers
Account
Cash at
Bank
|
44500
9750
3000
2000
26000
5000
34500
700
2270
1750
480
20000
1750
950
14600
250
|
Capitals
Pradeep
Prashant
Sales
Suppliers
Account
Reserve
for
Doubtful Debts
Outstanding
Expenses
|
60000
40000
57000
9500
500
500
|
167500
|
167500
|
Additional Information:
1.
Closing
stock on 31st March, 1998 was at cost Rs. 40,000 and Market price
Rs. 50,000.
2.
Provide 10%
p.a. interest on Capital.
3.
Charge
interest on drawings: Pradeep Rs. 100 and Prashant Rs. 150.
4.
Depreciate
plant at 10% p.a.
5.
Prashant’s
withdrawal of goods worth Rs. 1,000 for personal use but not recorded in the
books.
Solution:
In the books
of M/s Pradeep and Prashant
Trading Account
for the year ended 31.03.1996
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To opening stock
|
26000
|
By Sales
|
57000
|
||
To Purchases
|
34500
|
By Goods Withdrawn by Partner Prashant
|
1000
|
||
To Freight
|
5000
|
||||
To Carriage
|
700
|
||||
To Gross Profit C/d
|
31800
|
By Closing Stock
|
40000
|
||
98000
|
98000
|
Profit and Loss Account for the year
ended 31.03.1998
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Office Expenses
|
2270
|
By Gross Profit b/d
|
31800
|
||
To Rent, Rates & Taxes
|
1750
|
By Interest on Drawings
|
|||
To Insurance
|
480
|
Pradeep
|
100
|
||
To Salaries
|
1750
|
Prashant
|
150
|
250
|
|
To Bad Debts
|
950
|
||||
(+) F.B.D.
|
-
|
||||
(+) N.R.D.D.
|
-
|
||||
(-) O.R.D.D.
|
-500
|
450
|
|||
To Depreciation on Plant
|
750
|
||||
To Interest on Capital
|
|||||
Pradeep
|
6000
|
||||
Prashant
|
4000
|
10000
|
|||
To Net Profit C/d
|
|||||
Pradeep
|
7300
|
||||
Prashant
|
7300
|
14600
|
|||
32050
|
32050
|
Partners Capital Account
Particulars
|
Pradeep
|
Prashant
|
Particulars
|
Pradeep
|
Prashant
|
To Drawings
|
3000
|
2000
|
By Balance B/d
|
60000
|
40000
|
To Drawings
[Goods]
|
1000
|
By Interest on Capital
|
6000
|
4000
|
|
To Interest on Drawings
|
100
|
150
|
By Net Profit b/d
|
7300
|
7300
|
To Balance c/d
|
70200
|
48150
|
|||
73300
|
51300
|
73300
|
51300
|
Balance Sheet as on 31.03.2004
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
Capital A/c
|
Land & Building
|
44500
|
|||
Pradeep
|
70200
|
Plant
|
9750
|
||
Prashant
|
48150
|
118350
|
(-) Depreciation
|
750
|
9000
|
Creditors
|
9500
|
Motor Van
|
20000
|
||
Outstanding Expenses
|
500
|
Debtors
|
14600
|
||
Cash at Bank
|
250
|
||||
Closing Stock
|
40000
|
||||
128350
|
128350
|