Q7. Miss Meena and Miss Reena are in
partnership sharing profits and losses in the ratio of 3:2.
From the following trial balance and
adjustments, you are required to prepare Trading Account, Profit and Loss
Account for the year ended 31st March, 2013 and Balance Sheet as on
that date.
Trial Balance as on
31.03.2013
|
Particulars
|
|
Amount
(Rs.)
|
Particulars
|
|
Amount
(Rs.)
|
|
Building
|
|
400000
|
Capital Accounts
|
|
|
|
Plant and machinery
|
|
120000
|
Meena
|
300000
|
|
|
Purchases
|
|
650000
|
Reena
|
200000
|
500000
|
|
Carriage
|
|
7000
|
Sales
|
|
814000
|
|
Opening Stock
|
|
90000
|
Sundry creditors
|
|
180000
|
|
Wages
|
|
35000
|
Bank overdraft
|
|
20000
|
|
Sundry debtors
|
|
150000
|
|
|
|
|
Salaries
|
|
28000
|
|
|
|
|
Postage and telegram
|
|
4000
|
|
|
|
|
Insurance
|
|
5000
|
|
|
|
|
Bad debts
|
|
3000
|
|
|
|
|
Rent
|
|
4000
|
|
|
|
|
Discount
|
|
3000
|
|
|
|
|
Drawings
|
|
|
|
|
|
|
Meena
|
10000
|
|
|
|
|
|
Reena
|
5000
|
15000
|
|
|
|
|
|
|
1514000
|
|
|
1514000
|
Adjustments:
1. Stock on hand on 31st
March, 2013 was valued at Rs. 1,10,000.
2. Depreciate plant and
machinery at 10% p.a.
3. Create reserve for
doubtful debts at 5% on sundry debtors.
4. Salaries include Rs.
2500 as advance to workers.
5. Partners are allowed
interest at 5% p.a. on their capitals.
Solution:
Trading A/c for the year
ended 31st March, 2013
|
Dr.
|
|
|
|
|
|
|
Cr.
|
|
Particulars
|
|
Rs.
|
Rs.
|
Particulars
|
|
Rs.
|
Rs.
|
|
To Opening Stock
|
|
|
90,000
|
By Sales
|
|
|
8,14,000
|
|
To Purchases
|
|
|
6,50,000
|
|
|
|
|
|
To Carriage
|
|
|
7,000
|
|
|
|
|
|
To Wages
|
|
|
35,000
|
|
|
|
|
|
|
|
|
|
By Closing Stock
|
|
|
1,10,000
|
|
To Gross Profit c/d
|
|
|
142000
|
|
|
|
|
|
|
|
|
9,24,000
|
|
|
|
9,24,000
|
Profit and Loss A/c for the
year ended 31st March, 2013
|
Dr.
|
|
|
|
|
|
|
Cr.
|
|
Particulars
|
|
Rs.
|
Rs.
|
Particulars
|
|
Rs.
|
Rs.
|
|
To Salaries
|
|
28,000
|
|
By Gross Profit C/d
|
|
|
142000
|
|
(-) Advances
|
|
(-)2,500
|
25,500
|
|
|
|
|
|
To Postage and Telegram
|
|
|
4,000
|
|
|
|
|
|
To Insurance
|
|
|
5,000
|
|
|
|
|
|
To Bad debts
|
|
3,000
|
|
|
|
|
|
|
(+) F.B.D.
|
|
-
|
|
|
|
|
|
|
(+) N.R.D.D.
|
|
7,500
|
|
|
|
|
|
|
(-) O.R.D.D.
|
|
-
|
10,500
|
|
|
|
|
|
To Rent
|
|
|
4,000
|
|
|
|
|
|
To Discount
|
|
|
3,000
|
|
|
|
|
|
To Depreciation on Plant and Machinery
|
|
|
12,000
|
|
|
|
|
|
To Interest on Capital
|
|
|
|
|
|
|
|
|
Meena
[300000 × 5%]
|
|
15,000
|
|
|
|
|
|
|
Reena
[200000 × 5%]
|
|
10,000
|
25,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To Net Profit Transferred to Partners Capital
A/c
|
|
|
|
|
|
|
|
|
Meena
|
|
31,800
|
|
|
|
|
|
|
Renna
|
|
21,200
|
53000
|
|
|
|
|
|
|
|
|
142000
|
|
|
|
|
Partners' Capital A/c
|
Dr.
|
|
|
|
|
|
|
Cr.
|
|
Particulars
|
|
Meena
Rs.
|
Reena
Rs.
|
Particulars
|
|
Meena
Rs.
|
Reena
Rs.
|
|
To Drawings
|
|
10,000
|
5,000
|
By Balance b/d
|
|
3,00,000
|
2,00,000
|
|
|
|
|
|
By Interest on Capital
|
|
15,000
|
10,000
|
|
|
|
|
|
By Net Profit b/d
|
|
31,800
|
21,200
|
|
To Balance c/d
|
|
3,36,800
|
2,26,200
|
|
|
|
|
|
|
|
3,46,800
|
2,31,200
|
|
|
346800
|
231200
|
Balance Sheet as on 31
March, 2013
|
Liability
|
|
Rs.
|
Rs.
|
Assets
|
|
Rs.
|
Rs.
|
|
Capital A/c
|
|
|
|
Building
|
|
|
4,00,000
|
|
Meena
|
|
3,36,800
|
|
Plant and Machinery
|
|
1,20,000
|
|
|
Reena
|
|
2,26,200
|
5,63,000
|
(-) Depreciation @ 10%
|
|
-12,000
|
1,08,000
|
|
|
|
|
|
Sundry Debtors
|
|
1,50,000
|
|
|
Sundry Creditors
|
|
|
1,80,000
|
(-) N.R.D.D.@ 5%
|
|
(-)7,500
|
1,42,500
|
|
Bank Over Draft
|
|
|
20,000
|
Closing Stock
|
|
|
1,10,000
|
|
|
|
|
|
Advance Salaries paid to workers
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,63,000
|
|
|
|
7,63,000
|
|
|
|
|
|
|
|
|
|
