Following is the Trial Balance of Jitesh and Pritesh. The partners share profits and losses equally. [March 2012]

Trial balance as on 31^st March, 2010

Particulars	Debit balances	Credit balances
Capital – Jitesh Pritesh Bills Receivable and Bills Payable Opening Stock Purchases and Sales Returns Salaries Wages Conveyance Commission Miscellaneous Expenses Warehouse Rent [P/L A/c ] Brokerage Dock charges [Tr. A/c] Insurance Goodwill Land and Building Shares in Bajaj Ltd. Cash in hand Sundry Debtors and Creditors Motor van	40000 70000 194000 3000 15600 28400 2200 3200 9000 3000 4200 4800 76000 180000 50000 3600 56000 60000	200000 120000 50000 4000 6000 60000
	803000	803000

Adjustments

1.   Closing stock was valued at Rs. 75000.

2.   Depreciate land and building and motor van at 5% p.a.

3.   Insurance is paid for the year ended 31^st May, 2010.

4.   Jitesh has taken goods of Rs. 3000 for his personal use.

5.   Gooks of Rs. 8,000 were destroyed by fire and the Insurance Company admitted a claim of Rs. 6,400 only.

6.   Commission due but not received Rs. 1600

Prepare after taking into account the adjustments. Trading and Profit and Loss account for the year ended 31^st March 2010 and Balance sheet as on that date.

153400	110400	252200-175200	537400
GROSS PROFIT	NET PROFIT	PARTNERS CAPITAL ACCOUNT BALANCE	BALANCE SHEET TOTAL

Solution: In the books of Jitesh & Pritesh

Trading A/c for the year ended 31.03.10

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		70000	By Sales	363000
To Purchases	194000		(-) Return	-3000	360000
(-) Return	-4000	190000	By Goods taken over by Jitesh		3000
To Wages		28400	By Goods destroyed by fire		8000
To Dock Charges		4200
			By Closing Stock		75000
To Gross Profit C/d		153400
		446000			446000

Profit and Loss A/c for the year ended 31 – 3 – 10

Particulars	Amount	Amount	Particulars	Amount	Amount
To Salaries		15600	By Gross Profit b/d		153400
To Miscellaneous Expenses		3200	By Commission	6000
To Warehouse Rent		9000	(+) Outstanding	1600	7600
To Brokerage		3000
To Insurance	4800
(-) Prepaid	-800	4000
To Depreciation
Land and Building	9000
Motor Van	3000	12000
To Loss by Fire		1600
To Conveyance		2200
To Net Profit C/d
Jitesh	55200
Pritesh	55200	110400
		161000			161000

Partners Current A/c

Particulars	Jitesh	Pritesh	Particulars	Jitesh	Pritesh
To Drawings [Goods]	3000		By Balance b/d	200000	120000
			By Net Profit b/d	55200	55200
To Balance c/d	252200	175200
	255200	175200		255200	175200

Balance Sheet as on 31.3.10

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c			Bills Receivable		40000
Jitesh	252200		Outstanding Commission		1600
Pritesh	175200	427400	Goodwill		76000
Bills Payable		50000	Land & Building	180000
Sundry Creditors		60000	(-) Depreciation @ 5%	-9000	171000
			Shares in Bajaj Ltd.		50000
			Cash in hand		3600
			Sundry Debtors		56000
			Motor Van	60000
			(-) Depreciation @5%	-3000	57000
			Closing Stock		75000
			Prepaid Insurance		800
			Insurance Claim		6400
		537400			537400