Trial Balance as on 31st
March, 2013.
|
Particulars
|
Debit
|
Credit
|
|
Prepaid
Insurance
|
800
|
|
|
Insurance
|
2000
|
|
|
R.B.D.D.
|
|
1000
|
|
Discount
|
800
|
|
|
Postage
and telephone
|
3200
|
|
|
Salaries
|
56000
|
|
|
Debtors
and Creditors
|
66000
|
68000
|
|
Wages
|
24000
|
|
|
Opening
Stock
|
48000
|
|
|
Carriage
|
1000
|
|
|
Purchases
and Sales
|
193200
|
301600
|
|
Return
inwards and outwards
|
5600
|
9200
|
|
Bank
overdraft
|
|
120800
|
|
Plant
& Machinery
|
24000
|
|
|
Land
& Building
|
176000
|
|
|
Capital
|
|
|
|
Jitesh
|
|
52000
|
|
Lailesh
|
|
48000
|
|
Total
|
600600
|
600600
|
Adjustments:
1. Write off Rs. 2000 for bad
debts and provide R.B.D.D. 5% on debtors.
2. Goods worth Rs. 4000 were
distributed as free samples.
3. Closing stock on 31.03.2013
was valued at the cost Rs. 56000 while its market price was Rs. 60,000.
4. Salaries were outstanding Rs.
2000.
5. Depreciate :
Land and Building @ 5% p.a. and
Plant & Machinery @ 10% p.a.
Solution:
In the Books of Partnership Firm
Trading A/c For the Year Ended 31st
March, 20136
|
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
|
To Opening Stock
|
|
48000
|
By Sales
|
301600
|
|
|
To Purchases
|
193200
|
|
Less: Return Inwards
|
5600
|
296000
|
|
Less: Return Outwards
|
9200
|
184000
|
By Goods distributed as Free
Samples
|
|
4000
|
|
To Wages
|
|
24000
|
By Closing Stock
|
|
56000
|
|
To Carriage
|
|
1000
|
|
|
|
|
To Gross Profit C/d
|
|
99000
|
|
|
|
|
|
|
356000
|
|
|
356000
|
Profit and Loss A/c For the year
ended 31st March, 2013
|
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
|
To Salaries
|
56000
|
|
By Gross Profit b/d
|
|
99000
|
|
Add: Outstanding
|
2000
|
58000
|
|
|
|
|
To Insurance
|
|
2000
|
|
|
|
|
To Discount
|
|
800
|
|
|
|
|
To Postage & Telephones
|
|
3200
|
|
|
|
|
To Depreciation
|
|
|
|
|
|
|
On Plant and Machinery
|
2400
|
|
|
|
|
|
On Land and Building
|
8800
|
11200
|
|
|
|
|
To Advertisement A/c
|
|
4000
|
|
|
|
|
To Bad debts
|
-
|
|
|
|
|
|
Add: F.B.D.
|
2000
|
|
|
|
|
|
Add: N.R.D.D.
|
3200
|
|
|
|
|
|
Less: O.R.D.D.
|
1000
|
4200
|
|
|
|
|
To Net Profit Transferred to
Partners Capital A/c
|
|
|
|
|
|
|
Jitesh
|
10400
|
|
|
|
|
|
Lailesh
|
5200
|
15600
|
|
|
|
|
|
|
99000
|
|
|
99000
|
Partners’ Capital Account
|
Particulars
|
Jitesh
|
Lailesh
|
Particulars
|
Jitesh
|
Lailesh
|
|
To Balance c/d
|
62400
|
53200
|
By Balance b/d
|
52000
|
48000
|
|
|
|
|
By Profit & Loss A/c
[Net Profit]
|
10400
|
5200
|
|
|
62400
|
53200
|
|
62400
|
53200
|
Balance Sheet as on 31st
March, 2013
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Partners’ Capital A/c
|
|
|
Land & Building
|
176000
|
|
|
Jitesh
|
62400
|
|
Less: Depreciation @5%
|
8800
|
167200
|
|
Lailesh
|
53200
|
115600
|
Plant & Machinery
|
24000
|
|
|
Bank Overdraft
|
|
120800
|
Less: Depreciation @ 10%
|
2400
|
21600
|
|
Creditors
|
|
68000
|
Debtors
|
66000
|
|
|
Outstanding Salaries
|
|
2000
|
Less: F.B.D.
|
2000
|
|
|
|
|
|
|
64000
|
|
|
|
|
|
Less: N.R.D.D.
|
-3200
|
60800
|
|
|
|
|
Closing Stock
|
|
56000
|
|
|
|
|
Prepaid Insurance
|
|
800
|
|
|
|
306400
|
|
|
306400
|
Working Notes:
1. Prepaid insurance Rs. 800
given in the trial balance is shown only on the asset side of Balance Sheet.
2. Closing stock is shown at cost
price of Rs. 56000 which is lower than its market price of Rs. 60000.
3. Goods costing Rs. 4000
distributed as free samples are first shown on the credit side of Trading A/c
and then again they are shown on the debit side of Profit and Loss A/c.
4. Outstanding salaries of Rs.
2000 are first added to salaries on the debit side of profit and loss account
and then shown the same on the liabilities side of balance sheet.
5. N.R.D.D. = 5% on Net Debtors =
5% × 64000 = 3200
6. Division of Net Profit:
Jitesh = (2/3)× 15600 = 10400
Lailesh = (1/3) × 15600 = 5200
