From the following Trial Balance of M/s Vishal and Vaibhav, you are required to prepare Trading and Profit and Loss Account, for the year ended 31st March, 2013 and Balance Sheet as on that date after taking into consideration the adjustments given below:
Trial Balance as on 31st March, 2013
Debit Balances
|
Amount
|
Credit Balances
|
Amount
|
Salary and Wages
|
17000
|
Sales
|
110000
|
Postage and Telegram
|
1750
|
Sundry Creditors
|
72700
|
Opening Stock
|
23500
|
Bills Payable
|
40000
|
Plant and Machinery
|
70000
|
10% Bank Loan
[Taken on 1st October, 2012]
|
60000
|
Import Duty
|
3100
|
Outstanding Audit Fees
|
5900
|
Purchases
|
98500
|
Capital Accounts:
| |
Sundry Debtors
|
45800
|
Vishal
|
45000
|
Bills Receivable
|
16700
|
Vaibhav
|
45000
|
Carriage Outward
|
1800
| ||
Wages and Salary
|
14000
| ||
Printing and Stationery
|
4600
| ||
Cash in hand
|
1850
| ||
Lease hold premises
|
80000
| ||
378600
|
378600
|
Adjustments:
(1) Closing stock was valued at Rs. 30000.
(2) Postal stamps of Rs. 250 and stationery of Rs. 400 are unused.
(3) Lease hold property is to be run for 10 years w.e.f. 1st October, 2012.
(4) Depreciate Plant and Machinery at 10% p.a.
(5) Mr. Rajan, our customer, became insolvent and could not payhis debts of Rs. 1500.
Solution: In the books of Vishal and Vaibhav
Tradind A/c for the year ended 31.3.2013
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
To Opening Stock
|
23500
|
By Sales
|
110000
| ||
To Purchases
|
98500
| ||||
To Import Duty
|
3100
| ||||
To Wages and Salaries
|
14000
|
By Closing Stock
|
30000
| ||
To Gross Profit C/d
|
900
| ||||
140000
|
140000
|
Profit and Loss A/c for the year ended 31.3.2013
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
To Salary and Wages
|
1750
|
By Gross Profit b/d
|
900
| ||
To Postage and Telegram
|
1750
| ||||
Less: Unused Postal Stamps
|
250
|
1500
| |||
To Carriage Outward
|
1800
| ||||
To Printing and Stationery
|
4600
| ||||
Less: Unused Stationery
|
400
|
4200
| |||
To Depreciation on Lease hold property
|
4000
| ||||
To Depreciation on Plant and Machinery
|
7000
| ||||
To Bad debts
|
1500
|
By Net Loss Transferred to
| |||
To Interest on Bank Loan
|
3000
|
Vishal’s Capital A/c
|
19550
| ||
Vaibhav’s Capital A/c
|
19550
|
39100
| |||
40000
|
40000
|
Partners’ Capital A/c
Particulars
|
Vishal
|
Vaibhav
|
Particulars
|
Vishal
|
Vaibhav
|
To Profit and Loss A/c
[Net Loss]
|
19550
|
19550
|
By Balance b/d
|
45000
|
45000
|
To balance c/d
|
25450
|
25450
| |||
45000
|
45000
|
45000
|
45000
|
M/s Vishal and Vaibhav
Balance Sheet as on 31.3.13
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
Capitals:
|
Cash in Hand
|
1850
| |||
Vishal
|
25450
|
Sundry Debtors
|
45800
| ||
Vaibhav
|
25450
|
50900
|
Less: F.B.D.
|
1500
|
44300
|
Sundry Creditors
|
72700
|
Bills Receivable
|
16700
| ||
Bills Payable
|
40000
|
Plant and Machinery
|
70000
| ||
10% Bank Loan
|
60000
|
Less: Depreciation
|
7000
|
63000
| |
Add: Outstanding Interest on Bank Loan
|
3000
|
63000
|
Lease Hold Premises
|
80000
| |
Outstanding Audit Fees
|
5900
|
Less: Written off
|
4000
|
76000
| |
Closing Stock
|
30000
| ||||
Unused Postal Stamps
|
250
| ||||
Unused Stationery
|
400
| ||||
232500
|
232500
|
