Ashok and Tanaji are Partners sharing Profit and Losses in the ratio 2:3
respectively. Their Trial Balance as on 31st March, 2007 is given below. You are required to prepare Trading
and Profit and Loss Account for the year ended 31stMarch, 2007 and
Balance Sheet as on that date after taking into account the given adjustments.
Trial Balance
as on 31st March, 2007
|
Particulars
|
Amt. (Rs.)
|
Particulars
|
Amt. (Rs.)
|
|
Purchases
Patents
Right
Building
|
98,000
4,000
1,00,000
|
Capital:
Ashok
Tanaji
|
30,000
40,000
|
|
Stock
(1.04.2006)
|
15,000
|
Provident
Fund
|
7,000
|
|
Printing
and Stationery
|
1,750
|
Creditors
|
45,000
|
|
Sundry
Debtors
Wages
and Salaries
|
35,000
11,000
|
10%
Bank Loan taken on 1st April 2006
|
12,000
|
|
Audit
Fees
|
700
|
Sales
|
1,58,000
|
|
Sundry
Expenses
|
3,500
|
Reserve
for Doubtful Debts
|
250
|
|
Furniture
|
8,000
|
Purchase
Returns
|
3,500
|
|
Investment
|
10,000
|
||
|
Cash
|
4,000
|
||
|
Provident
Fund Contribution
|
800
|
||
|
Carriage
Inwards
|
1,300
|
||
|
Travelling
Expenses
|
2,700
|
||
|
2,95,750
|
2,95,750
|
Adjustments:
(1) Closing stock
is valued at the cost of Rs. 15,000 while
its market price isRs.18,000.
(2) On 31st March, 2007 the stock of stationery was Rs. 500.
(3) Provide reserve
for bad and doubtful debts at 5% on debtors.
(4) Depreciate
building at 5% and patent rights at 10%.
(5) Interest on
capitals is to be provided at 5% p.a.
(20)
Trading Account for the year ended 31st March
2007
|
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
|
To
Opening Stock
|
15,000
|
By
Sales
|
1,58,000
|
||
|
To
Purchases
Less:
Returns
|
98,000
3,500
|
94,500
|
|||
|
To
Wages & Salaries
|
11,000
|
||||
|
To
Carriage Inwards
|
1,300
|
||||
|
To
Gross Profit c/d
|
51,200
|
By
Closing Stock
|
15,000
|
||
|
1,73,000
|
1,73,000
|
Profit & Loss A/c for the year ended 31st March
2007
|
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
|
To
Printing & Stationery
|
1,750
|
To
Gross Profit b/d
|
51,200
|
||
|
Less:
Stock
|
500
|
1,250
|
|||
|
To
Audit Fees
|
700
|
||||
|
To
Sundry Expenses
|
3,500
|
||||
|
To
Provident Fund Contribution
|
800
|
||||
|
To
Travelling Expenses
|
2,700
|
||||
|
To
Bad Debts
|
-
|
||||
|
Add:
New Bad debts
|
-
|
||||
|
Add:
New R.D.D.
|
1,750
|
||||
|
Less:
Old R.D.D.
|
1,750
250
|
1,500
|
|||
|
To Depreciation
on
Patent
Right
Building
|
400
5,000
|
5,400
|
|||
|
To Interest
on Capital
Ashok
Tanaji
|
1,500
2,000
|
3,500
|
|||
|
To
Interest on loan
|
1,200
|
||||
|
To Net
Profit
Ashok
(2/5)
Tanaji
(3/5)
|
12260
18390
|
30650
|
|||
|
51,200
|
51,200
|
Partner’s Capital A/c
|
Particulars
|
Ashok
|
Tanaji
|
Particulars
|
Ashok
|
Tanaji
|
|
By
Balance b/d
|
30,000
|
40,000
|
|||
|
By
Interest on Capital
|
1,500
|
2,000
|
|||
|
To
Balance c/d
|
43,760
|
60,390
|
By
Net Profit
|
12,260
|
18,390
|
|
43,760
|
60,390
|
43,760
|
60,390
|
Balance Sheet as on 31-3-2007
|
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
|
Partners
Capital
Ashok
Tanaji
|
43,760
60,390
|
1,04,150
|
Patents
Right
(-)
10% Depreciation
|
4,000
400
|
3,600
|
|
Building
Less:
5% Depreciation
|
1,00,000
5,000
|
95,000
|
|||
|
Provident
Fund
Creditors
|
7,000
45,000
|
Sundry
Debtors
Less:
New R.D.D.
|
35,000
1,750
|
33,250
|
|
|
Bank
Loan (10%)
Add:
Interest
|
12,000
1,200
|
13,200
|
Furniture
Investment
|
8,000
10,000
|
|
|
Cash
|
4,000
|
||||
|
Closing
Stock
|
15,000
|
||||
|
Stock
of Stationery
|
500
|
||||
|
1,69,350
|
1,69,350
|
