OMTEX CLASSES: Dhiraj and Suraj are partners sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments,

prepare Trading and Profit and Loss account for the year ended 31st March, 2013 and balance sheet as on that date:

Trial Balance as on 31.03.2013

Particulars	Amount Rs.	Particulars	Amount Rs.
Opening Stock Purchases Plant and Machinery Furniture Carriage Wages Bills Receivable Sundry Debtors Conveyance Salaries Cash in hand Land and Building Bad debts Patents	32,000 64,000 30,000 18,500 1,500 30,000 5,000 32,000 4,000 10,500 14,750 83,500 1,750 25,000	Sales Sundry Creditors Return Outward Capital Accounts’ Dhiraj Suraj	1,93,500 16,500 2,500 90,000 50,000
	352500		352500

Adjustments :

(1) Closing stock: Cost price RS. 25,000 and market price Rs. 30,000.

(2) An amount of Rs. 3,500 spent for repairs to building is debited to building account.

(3) Depreciate plant and machinery and building at 5% p.a.

(4) Included in wages in advance given to workers Rs. 3,000.

(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.

Solution: In the books of Dhiraj and Suraj

Trading A/c For the year ended 31.3.13

Profit and Loss Account for the year ended 31.3.2013

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Conveyance		4000	By Gross Profit b/d		96500
To Salaries		10500
To Bad Debts	1750
(+) F.B.D.	1500	3250
To Repairs on Building		3500
To Depreciation on Plant and Machinery		1500
To Depreciation on Buliding		4000

To Net Profit Transfered to Partners capital A/c
Dhiraj Capital Account	46500
Suraj Capital A/c	23250	69750
		96500			96500

Partners Capital A/c

Balance sheet as on 31.3.2013

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