Misha and Latha are partners sharing profits and losses in the ratio of 2 : 1. From the following Trial Balance prepare Trading and Profit and loss account for the year ending 31st December, 2004.

                                      Trial Balance as on 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 Misha’s capital Latha’s capital	10, 000 28, 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 . 60, 000 400 . . . . . . 60, 000 30, 000
	1, 84, 501	1, 84, 501

Adjustments:

1.   Closing stock was valued at Rs. 26,500.

2.   Provide 10% Depreciation on Plant and Machinery.

3.   Goods worth Rs. 1000 were distributed as free samples.

4.   Prepaid Insurance Rs. 300.

5.   Maintain Reserve for Doubtful debts at 10% of Sundry debtors.

6.   Outstanding rent for the current year Rs. 200.

Goods worth Rs. 100 were taken over by Latha for her personal use, but no entry is made in the books. 


ANSWER:

GROSS PROFIT 28100

NET PROFIT 12154

BALANCE SHEET TOTAL

133855