OMTEX CLASSES: Following is the Trial Balance of Devi and Sridevi sharing profits and losses equally. Prepare a Trading and Profit & Loss account for the year ending 31st March, 2014 and a Balance Sheet as on that date after considering the adjustment given below.

Trial Balance as on 31^st March, 2014

Particulars (Debit)	Rs.	Particulars (Credit)	Rs.
Stock (1-4-2013) Purchases Returns Inwards Carriage Motive Power Wages Trade Expenses Sundry Debtors Salaries Insurance Postage Commission Plant & Machinery Furniture Advertising Office Rent (10 months) Drawings Devi Sridevi Building Cash in Hand	44000 170000 10000 4000 6000 56000 4000 72000 38000 2400 3600 5000 60000 16000 8000 10000 14000 6000 24000 3000	Capital A/c Devi Sridevi Sales Creditors Commission Bank Loan	80000 80000 320000 40000 4000 32000
	556000		556000

Adjustments

1. Stock on 31.3.2014 was valued at cost price Rs. 80,000 and market price Rs. 72,000.

2. Insurance has been paid for one year ending 30.6.2014.

3. Goods withdrawn by Devi amounting to Rs. 10,000 during the year were not recorded in the books.

4. Bad debts were Rs. 2000 and an R.D.D. is to be created at 5% on debtors.

5. Goods of Rs. 6000 were purchased on 30.3.2014 and also included in the closing stock, but the purchase was not recorded in the books of account

Solution: In the books of Devi & Sridevi

Trading A/c for the year ended 31.03.14

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		44000	By Sales	320000
To Purchases	170000		(-) Return	-10000	310000
(+) Unrecorded	6000	176000	By Goods withdrawn by partner Devi		10000
To Carriage		4000
To Motive Power		6000
To Wages		56000
To Gross Profit C/d		106000	By Closing Stock		72000
		392000			392000

Profit and Loss A/c for the year ended 31 – 3 – 14

Partners Current A/c

Balance Sheet as on 31.3.14

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