Trial Balance as on 31st
March, 2014
Particulars
|
Debit (Rs.)
|
Credit (Rs.)
|
Prepaid
Insurance
Insurance
R.B.D.D
Discount
Postage and
Telephones
Salaries
Debtors
Creditors
Wages
Opening
Stock
Carriage
Return
Inward
Return
Outward
Purchase and
sales
Bank
Overdraft
Plant and
Machinery
Land and
Building
Drawings:-
Sharma
Varma
Capitals:-
Sharma
Varma
|
400
1, 000
400
1, 600
28, 000
33, 000
12, 000
24, 000
500
2,800
96, 600
12, 000
88, 000
4,000
2,000
|
500
34, 000
4, 600
1, 50, 800
60, 400
30, 000
26, 000
|
3, 06, 300
|
3, 06, 300
|
1.
Write off Rs. 1,000 for bad debts and provide for R.B.D.D @ 5% on debtors.
2.
Goods worth Rs. 2,000 were distributed as free
samples.
3.
Closing Stock 31 – 03- 2014 was valued at cost Rs. 28, 000 while its market value is Rs. 30,000/-.
4.
Salaries were outstanding Rs. 1,000.
5.
Depreciate Land and Building @ 5% p.a. and Plant and Machinery @ 10% p.a.
6.
Goods worth Rs. 3,000 were destroyed by fire, but
insurance company admitted the claim for
Rs. 400 only.
7.
Varma had taken goods worth Rs. 1000 for his own
use, but no entry is made in the books.
Solution:
In the books of Sharma & Varma
Trading
A/c for the year ended 31.03.14
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
To Opening Stock
|
|
24000
|
By Sales
|
150800
|
|
To Purchases
|
96600
|
|
(-) Returns
|
-2800
|
148000
|
(-) Returns
|
-4600
|
92000
|
By Goods Distributed as
free sample
|
|
2000
|
To Wages
|
|
12000
|
By Goods Destroyed by fire
|
|
3000
|
To Carriage
|
|
500
|
By Goods Withdrawn by
Partner Varma
|
|
1000
|
|
|
|
|
|
|
To Gross Profit c/d
|
|
53500
|
By Closing Stock
|
|
28000
|
|
|
182000
|
|
|
182000
|
Profit
and Loss A/c for the year ended 31 – 3 – 14
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
To Insurance
|
|
1000
|
By Gross Profit b/d
|
|
53500
|
To Bad Debts
|
-
|
|
|
|
|
(+) F.B.D.
|
1000
|
|
|
|
|
(+) N.R.D.D.
|
1600
|
|
|
|
|
(-) O.R.D.D.
|
-500
|
2100
|
|
|
|
To Discount
|
|
400
|
|
|
|
To Postage and Telephone
|
|
1600
|
|
|
|
To Salaries
|
28000
|
|
|
|
|
(+) Outstanding
|
1000
|
29000
|
|
|
|
To Advertisement
|
|
2000
|
|
|
|
To Depreciation
|
|
|
|
|
|
On land and building
|
4400
|
|
|
|
|
On Plant and Machinery
|
1200
|
5600
|
|
|
|
To Goods lost by fire
|
|
2600
|
|
|
|
To Net Profit C/d
|
|
|
|
|
|
Sharma
|
6133
|
|
|
|
|
Varma
|
3067
|
9200
|
|
|
|
|
|
53500
|
|
|
53500
|
Partners Capital A/c
Particulars
|
Sharma
|
Varma
|
Particulars
|
Sharma
|
Varma
|
To
Drawings
|
4000
|
2000
|
By
Balance b/d
|
30000
|
26000
|
To
Drawings
[Goods]
|
|
1000
|
By
Net Profit b/d
|
6133
|
3067
|
To
Balance c/d
|
32133
|
26067
|
|
|
|
|
36133
|
29067
|
|
36133
|
29067
|
Balance Sheet as on 31.3.14
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
Capital
A/c
|
|
|
Prepaid
Insurance
|
|
400
|
Sharma
|
32133
|
|
Debtors
|
33000
|
|
Varma
|
26067
|
58200
|
(-)
F.B.D.
|
-1000
|
|
Creditors
|
|
34000
|
|
32000
|
|
Bank
Overdraft
|
|
60400
|
(-)
N.R.D.D.
|
-1600
|
30400
|
Outstanding
Salaries
|
|
1000
|
Plant
& Machinery
|
12000
|
|
|
|
|
(-)
Depreciation
|
-1200
|
10800
|
|
|
|
Land
& Building
|
88000
|
|
|
|
|
(-)
Depreciation
|
-4400
|
83600
|
|
|
|
Closing
Stock
|
|
28000
|
|
|
|
Insurance
Claim
|
|
400
|
|
|
153600
|
|
|
153600
|