Debit Balance
|
Amount
|
Credit Balance
|
Amount
|
Land and Building
|
44500
|
Capital : Kamesh
|
60000
|
Plant
|
9750
|
Mani
|
40000
|
Drawings: Kamesh
|
3000
|
Sales
|
57000
|
Mani
|
2000
|
Sundry Creditors
|
9500
|
Opening Stock
|
26000
|
Reserve for Doubtful Debts
|
500
|
Wages
|
5000
|
Outstanding Expenses
|
500
|
Purchases
|
34500
|
||
Carriage inwards
|
700
|
||
Office expenses
|
2270
|
||
Rent, Rates and Taxes
|
1750
|
||
Insurance
|
480
|
||
Motor Van (addition on 1st July Rs. 10,000)
|
20,000
|
||
Salaries
|
1750
|
||
Bad debts
|
950
|
||
Debtors
|
14600
|
||
Cash at Bank
|
250
|
||
167500
|
167500
|
Additional Information:
1. Closing stock on 31st December, 2005 was
at cost Rs, 40, 000/- and Market price Rs. 50,000/-
2. Depreciate Plant at 10% p.a. and Land and Building @
20% p.a. Depreciate Motor van by 10% p.a.
3. The goods for Rs. 5, 600 purchases and received on
25th December, 2002 were not recorded in the purchase book.
4.
Insurance is paid for the year ended 31st March 2005.
Solution:
In the books
of M/s Kamesh and Mani
Trading
Account for the year ended 31.12.2005
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Opening Stock
|
26000
|
By Sales
|
57000
|
||
To Purchases
|
34500
|
||||
(+) Unrecorded
|
5600
|
40100
|
|||
To Wages
|
5000
|
||||
To Carriage Inward
|
700
|
||||
To Gross Profit C/d
|
25200
|
By Closing Stock
|
40000
|
||
97000
|
97000
|
Profit and Loss Account for the year
ended 31.12.2005
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
To Office Expenss
|
2270
|
By Gross Profit b/d
|
25200
|
||
To Rent, Rates and Taxes
|
1750
|
||||
To Insurance
|
480
|
||||
(+) Outstanding for 9 months
|
360
|
840
|
|||
To Salaries
|
1750
|
||||
To Bad debts
|
950
|
||||
(+) F.D.D.
|
-
|
||||
(+) N.R.D.D.
|
-
|
||||
(-) O.R.D.D.
|
-500
|
450
|
|||
To Depreciation
|
|||||
Plant
|
975
|
||||
Land & Building
|
8900
|
||||
Motor Van
|
1500
|
11375
|
|||
To Net Profit C/d
|
|||||
Kamesh
|
3383
|
||||
Mani
|
3382
|
6765
|
|||
25200
|
25200
|
Partners Current Account
Particulars
|
Kamesh
|
Mani
|
Particulars
|
Kamesh
|
Mani
|
To Drawings
|
3000
|
2000
|
By Balance b/d
|
60000
|
40000
|
To Balance c/d
|
60383
|
41382
|
By Net Profit b/d
|
3383
|
3382
|
63383
|
43382
|
63383
|
43382
|
Balance Sheet as on 31.12.1997
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
Capital A/c
|
Land & Building
|
44500
|
|||
Kamesh
|
60383
|
(-) Depreciation
|
-8900
|
3600
|
|
Mani
|
41382
|
101765
|
Plant
|
9750
|
|
Sundry Creditors
|
9500
|
(-) Depreciation
|
-975
|
8775
|
|
(+) Unrecorded
|
5600
|
15100
|
Motor Van
|
20000
|
|
Outstanding Expenses
|
500
|
(-) Depreciation
|
-1500
|
18500
|
|
Outstanding Insurance
|
360
|
Debtors
|
14680
|
||
Cash at Bank
|
250
|
||||
Closing Stock
|
40000
|
||||
117725
|
117725
|