OMTEX CLASSES: From the following Trial Balance of M/s Bheem and Raju, you are required to prepare Trading Profit and Loss Account for the year ended 31st March, 2014 and the Balance sheet as on that date. Trial Balance as on 31.3.2014.

Particulars	Debit (Rs.)	Credit (Rs.)
Bheem’s Capital Raju’s capital Bheem’s Drawing Raju’s Drawing Opening Stock Bills Receivable Purchases Sales Bills Payable Return In ward Return Outward Plant and Machinery Loose Tools Patents Sundry Debtors Sundry Creditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Stationery Power and Fuel	15, 000 10, 000 1, 00, 000 25, 000 3, 75, 000 5, 000 1, 00, 000 25, 000 25, 000 1, 25, 000 77, 500 19, 000 17, 000 7, 500 3, 000 2, 000 3, 500	2, 00, 000 2, 00, 000 4, 00, 000 10, 000 4, 500 1, 20, 000
	9, 34, 500	9, 34, 500

Adjustments:

1. Stock as on 31^st March, 2014 Rs. 30,000 and its market value were Rs. 40,000.

2. Write off Rs. 1000 for bad & Provide for Bad and Doubtful debts at 5% on Sundry Debtors.

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

4. Prepaid Insurance Rs. 750.

5. Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a.

6. Outstanding Salaries Rs. 2,500, Rent Rs. 2,500, Printing Rs. 3000.

7. Uninsured goods worth Rs 10000 were lost by fire.

Solution: In the books of Bheem and Raju

Trading A/c for the year ended 31.03.14

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		100000	By Sales	400000
To Purchases	375000		(-) Returns	(5000)	395000
(-) Returns	(4500)	370500	By Goods distributed as free samples		1000
To wages		19000	By Goods lost by fire		10000
			By Closing stock		30000
			By Gross loss c/d		57000
		493000			493000

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

Particulars	Amount	Amount	Particulars	Amount	Amount
To Gross loss b/d		57000
To Salaries	17000
(+) Outstanding	2500	19500
To Rent & Taxes	7500
(+) Outstanding	2500	10000
To Insurance	3000
(-) Prepaid	750	2250
To Printing & Stationery	2000
(+) Outstanding	3000	5000
To Bad debts	-
(+) F.B.D.	1000
(+) N.R.D.D.	6200
(-) O.R.D.D.	-	7200
To Advertisement		1000
To Depreciation on Plant and Machinery	10000
On Patent	3750	13750
To Goods lost by fire		10000	By Net loss C/d
			Bheem	62850
			Raju	62850	125700
		125700			125700

Partners Capital A/c

Balance Sheet as on 31.3.14

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