Adjustments:
1. Partners share Profits and Losses in the ratio of
their capitals.
2.
Write off Rs.
450 for Bad debts & Reserve for Bad and Doubtful Debts is to be maintained
at 5% on the Debtors.
3. Goods worth Rs. 1, 000 were destroyed by fire and the
insurance company admitted a claim for Rs. 800.
4. Stock as on 31st December, 2004 was valued at Rs. 8,
000.
5. Goods worth Rs. 1000 were distributed as free samples.
6. Wages outstanding Rs. 1000.
Prepare Trading and Profit & Loss account for the year ended 31st
December, 2004 and a Balance sheet as on that date.
ANSWER
GROSS PROFIT 19150 | NET PROFIT 13692 | BALANCE SHEET TOTAL | 51692 |
Solution:
In the books
of M/s Surya and Abhijeet
Trading
Account for the year ended 31.03.2014
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Opening Stock
|
|
11000
|
By Sales
|
75500
|
|
|
To Purchases
|
47500
|
|
(-) Return
|
(1500)
|
74000
|
|
(-) Return
|
(1000)
|
46500
|
By Goods distributed as free samples
|
|
1000
|
|
To Carriage
|
|
350
|
By Goods destroyed by fire
|
|
1000
|
|
To Wages
|
6000
|
|
By Closing Stock
|
|
8000
|
|
(+) Out standing
|
1000
|
7000
|
|
|
|
|
To Gross Profit C/d
|
|
19150
|
|
|
|
|
|
|
84000
|
|
|
84000
|
Profit and Loss Account for the year
ended 31.03.2014
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Salaries
|
|
2500
|
By Gross Profit b/d
|
|
19150
|
|
To Rent and Insurance
|
|
400
|
By Discount
|
|
50
|
|
To Postage and Telegram
|
|
200
|
|
|
|
|
To Bad debts
|
250
|
|
|
|
|
|
(+) F.B.D.
|
450
|
|
|
|
|
|
(+) N.R.D.D.
|
858
|
|
|
|
|
|
(-) O.R.D.D.
|
(750)
|
808
|
|
|
|
|
To Discount
|
|
100
|
|
|
|
|
To Trade expenses
|
|
300
|
|
|
|
|
To Goods lost on fire
[1000 – 800]
|
|
200
|
|
|
|
|
To Advertisement
|
|
1000
|
|
|
|
|
To Net Profit C/d
|
|
|
|
|
|
|
Surya
|
8215
|
|
|
|
|
|
Abhijeet
|
5477
|
13692
|
|
|
|
|
|
|
19200
|
|
|
19200
|
Partners Capital Account
|
Particulars
|
Surya
|
Abhijeet
|
Particulars
|
Surya
|
Abhijeet
|
|
To Drawings
|
500
|
200
|
By balance b/d
|
15000
|
10000
|
|
|
|
|
By Net Profit b/d
|
8215
|
5477
|
|
To Balance c/d
|
22715
|
15277
|
|
|
|
|
|
23215
|
15477
|
|
23215
|
15477
|
Balance Sheet as on 31.03.2014
|
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
|
Capital A/c
|
|
|
Buildings
|
|
20000
|
|
Surya
|
22715
|
|
Plant and Machinery
|
|
6000
|
|
Abjijeet
|
15277
|
37992
|
Cash at bank
|
|
600
|
|
Creditors
|
|
12600
|
Debtors
|
17600
|
|
|
Outstanding Salaries
|
|
100
|
(-) F.B.D.
|
(450)
|
|
|
Outstanding Wages
|
|
1000
|
|
17150
|
|
|
|
|
|
(-) N.R.D.D.
|
(858)
|
16292
|
|
|
|
|
Insurance Claim
|
|
800
|
|
|
|
|
Closing Stock
|
|
8000
|
|
|
|
51692
|
|
|
51692
|
