OMTEX CLASSES: From the following information you are required to prepare the Trading account, profit and loss account and Balance sheet as on 31st March, 2014.

Trial Balance as on 31^st March, 2014

Particulars	Debit (Rs.)	Credit (Rs.)
Ronaldo Capital Ricardo’s capital Ronaldo’s Drawing Ricardo’s Drawing Stock on 1 –4 – 2013 Bills Receivable Purchases Sales Bills Payable Return In ward Return Outward Plant and Machinery Loose Tools Patents Sundry Debtors Sundry Creditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Stationery Power and Fuel	4, 000 1, 000 2, 20, 000 5, 000 2, 95, 000 5, 000 1, 00, 000 24, 000 25, 000 1, 25, 000 77, 550 19, 000 17, 500 7, 950 3, 000 2, 000 3, 500	1, 00, 000 2, 30, 000 2, 00, 000 1, 60, 000 4, 500 2, 40, 000
	9, 34, 500	9, 34, 500

1. Stock on 31^st March, 2014 is valued at Rs. 30,000 but is market value is Rs. 35,000.

2. Depreciate plant and machinery @ 5% p.a. Patents by 20%.

3. Insurance were prepaid for Rs. 200.

4. Salaries outstanding amounted to Rs. 800.

5. Maintain Reserve for Doubtful debts at 10% of Sundry debtors.

6. Goods worth Rs. 5000 were destroyed by fire and the insurance company admitted a claim for Rs. 3000 only.

7. Ronaldo has withdrawn goods worth Rs. 500 for his own use, but no entry is passed in the books.

Solution: In the books of Ronaldo & Ricardo

Trading A/c for the year ended 31.03.14

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		220000	By Sales	200000
To Purchases	295000		(-) Return	-5000	195000
(-) Return	-4500	290500	By Goods destroyed by fire		5000
To Wages		19000	By Goods withdrawn by Partner Ronaldo		500
To Power & Fuel		3500
			By Closing Stock		30000
			By Gross Loss C/d		302500
		533000			533000

Profit and Loss A/c for the year ended 31 – 3 – 14

Partners Capital A/c

Balance Sheet as on 31.3.14

Advertisement