1. Ajay and Vijay are partners sharing profits and losses equally.
| Particulars | Debit | Particulars | Credit |
| Opening Stock | 15000 | Capital Account | |
| Purchases | 45700 | Ajay | 40000 |
| Wages | 9900 | Vijay | 25000 |
| Investments | 3500 | Bills Payable | 6000 |
| Carriage Outward | 4600 | Outstanding Salaries | 1700 |
| Printing and Stationery | 3400 | Sales | 79800 |
| Insurance | 750 | creditors | 2000 |
| salaries | 10000 | Bank Overdraft | 3000 |
| Postage and Telegram | 700 | | |
| Machinery | 16800 | | |
| Furniture | 6400 | | |
| Debtors | 25000 | | |
| Bills Receivable | 4000 | | |
| Cash at Bank | 6000 | | |
| Advertisement | 1000 | | |
| Bad debts | 250 | | |
| Carriage Inward | 4500 | | |
i. Closing Stock was valued at Rs. 40, 200.
ii. Goods of Rs. 4000 were burnt by fire and Insurance company admitted the claim of Rs. 3200.
iii. Prepaid Insurance was Rs. 200.
v. Depreciate Machinery by 10% and Furniture bby 15%.
vi. Outstanding wages were Rs. 2100.
2. From the following trial balance of Radhika and Sarika, for the year ended 31stMarch, 2004.
| Particulars | Debit | Particulars | Credit |
| Patents | 12000 | Capital | |
| Goodwill | 25000 | Radhika | 180000 |
| Plant and Machinery | 85000 | Sarika | 120000 |
| Carriage | 6000 | Bank Loan | 30000 |
| General Expenses | 10000 | Sundry Creditors | 18000 |
| Electricity and Lighting | 5000 | Discount | 5000 |
| Bills Receivable | 5000 | commission | 6000 |
| Sundry Debtors | 65000 | general reserve | 15000 |
| Trade Expenses | 3000 | Reserve for Bad and Doubtful debts | 7500 |
| Advertisement | 1250 | Reserve for Discount of Debtors | 2500 |
| Furniture | 10750 | Outstanding Rent | 4200 |
| Wages | 12000 | Sales | 150000 |
| Salaries | 7500 | Returns | 1550 |
| Purchases | 97500 | Bills Payable | 6000 |
| Stock | 68000 | | |
| Cash in Hand | 32000 | | |
| Discount | 3500 | | |
| Land and Building | 90000 | | |
| Printing and Stationery | 6000 | | |
| Interest on Bank Loan | 1250 | | |
Market value of stock is Rs. 50,000. Cost price is Rs. 60000.
Depreciate furniture by 10%, plant and Machinery by 15%, Land and Building by 20%.
Electricity and lighting includes Rs. 1000 paid for deposit to Electricity Company.
Goods worth Rs. 5000 were purchased on 28thMarch 2004, but, invoice was omitted to be entered in the books.
Outstanding wages Rs. 2,000 and advance paid against salaries Rs. 2500.
Partners share profit and losses in the ratio of their opening capital balance.
3. From the following Trial Balance of Tom and Jerry, year ended 31stDecember, 2004.
| Particulars | Debit (Rs.) | Credit (Rs.) |
| Tom’s Capital Jerry’s capital Tom’s Drawing Jerry’s Drawing Stock on 1 – 1 – 2004 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 | 14, 500 10, 000 2, 00, 000 25, 000 2, 75, 000 5, 000 1, 00, 000 25, 000 25, 000 1, 25, 000 77, 550 19, 000 17, 500 7, 500 3, 000 2, 000 3, 500 | 2, 80, 000 50, 000 4, 00, 000 60, 000 4, 500 1, 40, 050 |
Adjustments:
1. Stock as on 31st December, 1978 Rs. 1, 30,000 and its market value were Rs. 1, 40,000.
2. Write off Rs. 1000 for bad & Provide for Bad and Doubtful debts at 5% on Sundry Debtors.
3. Goods worth Rs. 1000 were distributed as free samples.
4. Prepaid Insurance Rs. 750.
5. Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a.
6. Outstanding Salaries Rs. 2,500
7. Uninsured goods worth Rs 1200 were lost by fire.
4. Dolu and Bolu are partners sharing profits and losses in the ratio of 2 : 1. For 31.12.2004
| Particulars | Debit (Rs.) | Credit (Rs.) |
| Stock (1st January) Sundry Debtors Bills payable Purchases Wages Returns Outward Salaries Office Expenses Insurance Plant & Machinery Sundry Creditors Rent Sales Reserve for Doubtful Debts Travelling Expenses Returns Inward Land and Building Bills Receivable Bank Dolu’s capital Bolu’s capital | 10, 000 25, 000 40, 000 8, 500 2, 700 2, 446 1, 300 30, 000 1, 800 1, 400 3, 500 44, 800 3, 400 6, 655 | 10, 101 2, 500 21, 500 57, 000 400 60, 000 30, 000 |
Closing stock was valued at Rs. 26,500.
Provide 10% Depreciation on Plant and Machinery.
Goods worth Rs. 1000 were distributed as free samples.
Prepaid Insurance Rs. 300.
Maintain Reserve for Doubtful debts at 10% of Sundry debtors.
Outstanding rent for the current year Rs. 200.
Goods worth Rs. 100 were taken over by Bolu for his personal use, but no entry is made in the books.
5. Arya and Vikram are in a Partnership firm. 31st December, 2004 was as follows.
| Particulars | Debit (Rs.) | Credit (Rs.) |
| Capitals: Arya Vikram Drawings: Arya Vikram Buildings Plant and Machinery Cash at bank Purchases and Sales Returns Carriage Opening stock Wages Debtors & Creditors Salaries Rent and Insurances Postage and Telegrams Bad Debts Discounts Reserve for Bad Debts Outstanding Salaries Trade Expenses | 500 200 20, 000 6, 000 600 47, 500 1, 500 350 11, 000 6, 000 17, 600 2, 500 400 200 250 100 300 | 12, 000 13, 000 75, 500 1, 000 12, 600 50 750 100 |
Partners share Profits and Losses in the ratio of their capitals.
Write off Rs. 450 for Bad debts & Reserve for Bad and Doubtful Debts is to be maintained at 5% on the Debtors.
Goods worth Rs. 1, 000 were destroyed by fire and the insurance company admitted a claim for Rs. 800.
Stock as on 31st December, 2004 was valued at Rs. 8, 000.
Goods worth Rs. 1000 were distributed as free samples.
Wages outstanding Rs. 1000.
6. Trial Balance of Sharukh and Salman sharing profits and losses equally. 31.3.1996.
| Particulars(Debit) | Amount | Particulars(Credit) | Amount |
| Stock (1-4-1995) Purchases Returns Inwards Carriage Motive Power Wages Trade Expenses Sundry Debtors Salaries Insurance Postage Commission Plant & Machinery Furniture Advertising Office Rent (10 months) Drawings Sharukh Salman Building Cash in Hand | 50000 170000 10000 4000 6000 56000 4000 72000 38000 2400 3600 5000 60000 16000 8000 10000 14000 6000 24000 3000 | Capital A/c Sharukh Salman Sales Creditors Commission Bank Loan | 80000 80000 326000 40000 4000 32000 |
Adjustments
Stock on 31.3.1996 was valued at cost price Rs. 80,000 and market price Rs. 72,000.
Insurance has been paid for one year ending 30.6.1996.
Goods withdrawn by Sharukh amounting to Rs. 10,000 during the year were not recorded in the books.
Bad debts were Rs. 2000 and an R.D.D. is to be created at 5% on debtors.
Goods of Rs. 6000 were purchased on 30.3.1996 and also included in the closing stock, but the purchase was not recorded in the books of account.
