Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2 : 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date: Trial Balance as on 31st March 2016 Particulars Debit Amount (₹) Credit Amount (₹) Prepaid insurance 3,200 Insurance 8,000 R.D.D. 4,000 Discount 3,200 Postage and telephone 12,800 Debtors and creditors 2,64,000 2,72,000 Salaries 2,24,000 Wages 96,000 Opening stock 1,92,000 Carriage 4,000 Purchased and sales 7,72,800 12,06,400 Return inward/Outward 22,400 36,800 Bank Overdraft 4,83,200 Plant and Machinery 96,000 Land and Building 7,04,000 Partner's Capital accounts: Ashok 2,08,000 Sangmesh 1,92,000 24,02,400 24,02,400 Adjustment: Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors. Goods worth Rs. 16,000 were distributed as free samples. Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000. The salaries were outstanding at Rs. 8,000. Depreciation: Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.

In the books of Ashok and Sangmesh Dr. Trading A/c for the year ended 31.03.16 Cr. Particulars Amount (₹) Particulars Amount (₹) To Opening Stock 1,92,000 By Net Sales 11,84,000 To Net Purchases 7,36,000 By Closing Stock 2,24,000 To wages 96,000 By Goods distributed as free samples 16,000 To Carriage 4,000 To Gross Profit c/d 3,96,000 14,24,000 14,24,000 Dr. Profit & Loss Account for the year ended 31-03-2016 Cr. Particulars Amount (₹) Particulars Amount (₹) Amount (₹) To Discount 3,200 Gross Profit b/d 3,96,000 To Postage & Telephone 12,800 To Salaries (2,24,000 + O/S 8,000) 2,32,000 To Insurance 8,000 To Advertisement 16,000 To Bad Debts & RDD Adjustment 16,800 To Depreciation: Land & Building 35,200 Plant & Machinery 9,600 To Net Profit transferred to Partners’ Capital A/c 62,400 3,96,000 3,96,000 Net Profit = ₹ 62,400, to be shared 2:1 Ashok: ₹ 62,400 × `2/3` = ₹ 41,600 Sangmesh: ₹ 62,400 × `1/3` = ₹ 20,800 Balance Sheet as at 31-03-2016 Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹) Partners’ Capital Accounts 4,62,400 Land & Building (7,04,000 – 35,200) 6,68,800 Ashok 2,49,600 Plant & Machinery (96,000 – 9,600) 86,400 Sangmesh 2,12,800 Closing Stock 2,24,000 Sundry Creditors 2,72,000 Debtors 2,43,200 Bank Overdraft 4,83,200 Prepaid Insurance 3,200 Outstanding Salaries 8,000 12,25,600 12,25,600 Working Notes: Net Sales & Net Purchases Net Sales = Sales – Returns Inward = 12,06,400 – 22,400 = ₹ 11,84,000 Net Purchases = Purchases – Returns Outward – Free Samples = 7,72,800 – 36,800 – 16,000 = ₹ 7,20,000 Provision for Doubtful Debts Debtors after write-off = 2,64,000 – 8,000 = ₹ 2,56,000 New R.D.D. = 5% of 2,56,000 = ₹ 12,800 P&L charge = Bad Debts ₹ 8,000 + (New RDD ₹ 12,800 – Old RDD ₹ 4,000) = ₹ 16,800 Depreciation Land & Building @ 5% = 5% of 7,04,000 = ₹ 35,200 Plant & Machinery @ 10% = 10% of 96,000 = ₹ 9,600

Ashok and Sangmesh Are in Partnership Sharing Profit and Losses in the Ratio of 2 : 1. from the Following Trial Balance and Adjustments Given Below, You Are Required to Prepare Trading and Profit and

प्रश्न

Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2 : 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date:

Trial Balance as on 31st March 2016
Particulars	Debit Amount (₹)	Credit Amount (₹)
Prepaid insurance	3,200
Insurance	8,000
R.D.D.		4,000
Discount	3,200
Postage and telephone	12,800
Debtors and creditors	2,64,000	2,72,000
Salaries	2,24,000
Wages	96,000
Opening stock	1,92,000
Carriage	4,000
Purchased and sales	7,72,800	12,06,400
Return inward/Outward	22,400	36,800
Bank Overdraft		4,83,200
Plant and Machinery	96,000
Land and Building	7,04,000
Partner's Capital accounts:
Ashok		2,08,000
Sangmesh		1,92,000
	24,02,400	24,02,400

Adjustment:

Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
Goods worth Rs. 16,000 were distributed as free samples.
Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
The salaries were outstanding at Rs. 8,000.
Depreciation: Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.

खाता बही

उत्तर

In the books of Ashok and Sangmesh
Dr.	Trading A/c for the year ended 31.03.16		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	1,92,000	By Net Sales	11,84,000
To Net Purchases	7,36,000	By Closing Stock	2,24,000
To wages	96,000	By Goods distributed as free samples	16,000
To Carriage	4,000
To Gross Profit c/d	3,96,000
	14,24,000		14,24,000

Dr.	Profit & Loss Account for the year ended 31-03-2016			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Discount	3,200	Gross Profit b/d		3,96,000
To Postage & Telephone	12,800
To Salaries (2,24,000 + O/S 8,000)	2,32,000
To Insurance	8,000
To Advertisement	16,000
To Bad Debts & RDD Adjustment	16,800
To Depreciation:
Land & Building	35,200
Plant & Machinery	9,600
To Net Profit transferred to Partners’ Capital A/c	62,400
	3,96,000			3,96,000

Net Profit = ₹ 62,400, to be shared 2:1

Ashok: ₹ 62,400 × `2/3` = ₹ 41,600

Sangmesh: ₹ 62,400 × `1/3` = ₹ 20,800

Balance Sheet as at 31-03-2016
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Partners’ Capital Accounts		4,62,400	Land & Building (7,04,000 – 35,200)		6,68,800
Ashok	2,49,600		Plant & Machinery (96,000 – 9,600)		86,400
Sangmesh	2,12,800		Closing Stock		2,24,000
Sundry Creditors		2,72,000	Debtors		2,43,200
Bank Overdraft		4,83,200	Prepaid Insurance		3,200
Outstanding Salaries		8,000
		12,25,600			12,25,600

Working Notes:

Net Sales & Net Purchases

Net Sales = Sales – Returns Inward

= 12,06,400 – 22,400 = ₹ 11,84,000

Net Purchases = Purchases – Returns Outward – Free Samples

= 7,72,800 – 36,800 – 16,000 = ₹ 7,20,000

Provision for Doubtful Debts

Debtors after write-off = 2,64,000 – 8,000 = ₹ 2,56,000

New R.D.D. = 5% of 2,56,000 = ₹ 12,800

P&L charge = Bad Debts ₹ 8,000 + (New RDD ₹ 12,800 – Old RDD ₹ 4,000) = ₹ 16,800

Depreciation

Land & Building @ 5% = 5% of 7,04,000 = ₹ 35,200

Plant & Machinery @ 10% = 10% of 96,000 = ₹ 9,600

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Partnership Final Accounts

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Partnership Final Accounts

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संबंधित प्रश्न

Write a short note on E-Commerce ?

Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint Venture to purchase and sale goods and agreed to share profit and losses in the proportion of 4 : 1 respectively.

Rokadimal sent goods of Rs 4,00,000 to Gunjal for sale.

Rokadimal paid Rs 11,500 for carriage.

Rokadimal drew a bill of Rs 95,000 on Gunjal, which he accepts.

Rokadimal discounted this bill with the bank for Rs 92,000.

The amount of discount is to be treated as joint venture expenditure.

Gunjal paid Rs 13,500 got advertisement.

Gunjal sold all the goods for Rs 5,00,000.

Gunjal paid Rs 7,000 for selling expenses and he is entitled for a commission on sales at 5% Co-venturers settled their accounts.

Give Journal Entries in the books of Gunjal of Pune.

Write the word/phrase/term, which can substitute the following sentence.

Debit balance of trading account.

Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:

Trial Balance as on 31st March, 2010
Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Opening stock	20,000	Capital A/c's
Purchases	30,000	Sanjay	40,000
Debtors	12,000	Sudhir	30,000
Wages	5,000	Sales	70,000
Salaries	10,000	Sundry Creditors	21,000
Land and building	30,000	Bills Payable	20,000
Plant and machinery	25,000	Discount	5,000
Furniture	16,000	Outstanding Rent	1,500
Advertisement (for 2 years)	6,000
Bills Receivable	8,000
Insurance	2,000
Drawings:
Sanjay	2,000
Sudhir	3,000
Cash in hand	5,500
Rent	10,000
Power and Fuel	3,000
	1,87,500		1,87,500

Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.

3) Depreciate Land and Building at 5% and Machinery at 10%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

6) Provide interest on Partners Capital at 5% p.a.

From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.

Given below is the Trial Balance of M/s Seeta and Geeta as on 31^st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31^st March, 2010 and Balance Sheet on that date.

Trial Balance as on 31^st March, 2010

Debit Balance	Amount (Rs)	Credit Balance	Amount (Rs)
Current A/c-		Capital A/c-
Geeta	4000	Seeta	120000
Opening stock	88,000	Geeta	120000
Purchases	1,76,000	Current A/c- Seeta	5000
Wages	23,500	Sundry Creditors	103000
Salaries	15,000	Bank overdraft	60000
Office Expenses	8000	Sales	308000
Bank Charges	2600
Legal Charges	3000
Machinery	90000
Land and building	130000
Interest	3600
Export Duty	3800
Bad -Debts	4000
Sundry Debtors	82000
Travelling Expenses	3200
Electricity charges	2300
Furniture	37000
8% Debentures (Purchased on 1.10.2009)	40000
	716000		716000

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 80,000.

2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000.

3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400.

4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.

5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.

6) Legal charges paid in advance Rs 1,200.

7) Provide interest on capital at 8% p.a.

Mohini and Rohini are in partnership firm sharing profits and losses equally. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31^st March, 2010

Particulars	Debit Amount Rs.	Credit Amount Rs
Partner’s Capital A/c-
Mohini		120000
Rohini		90000
Purchases and Sales	220000	430000
Sundry Debtors and Creditors	45000	35000
Bills Receivable and Bills Payable	45000	50000
Discount	4000	3500
Opening stock	25000
Wages and Salaries	23000
Manufacturing Expenses	9,000
Factory Insurances	5,000
Factory Building	1,40,000
Plant and Machinery	75,000
Advertisement (for 2years w.e.f. 1^st Jan. 2010)	10,000
Salaries and Wages	45,000
Warehouse rent	6,000
Import duty	11,500
Cash in hand	5,000
10% Government Bond (Purchased on 1st July 2009)	60000
	728500	728500

Adjustments:

1) Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.

2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.

3) Depreciate Machinery at 10% p.a.

4) Outstanding Wages were Rs 2,500.

5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.

6) Maintain R.D.D at 5% on Sundry Debtors.

Following is the Balance sheet of Harsha and Versha’s firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.

Balance sheet as on 31st March, 2016
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital A/c:		Land & building	2,00,000
Harsha	2,80,000	Furniture	76,000
Varsha	2,80,000	Sundry debtors	3,00,000
Sundry creditors	4,00,000	Stock	1,60,000
		Cash at bank	2,24,000
	9,60,000		9,60,000

They decided to admit Asha on 1st April, 2016, into partnership on the following terms:

Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
A provision of 5% on debtors to be made for doubtful debts.
The stock is to be taken at a value of Rs. 2,00,000.
The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.

Prepare:

Profit and Loss Adjustment Account, Partner’s Capital Account and new Balance Sheet of the firm.

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	32,000	Sales	1,93,500
Purchases	64,000	Sundry Creditors	16,500
Plant and Machinery	30,000	Return Outward	2,500
Furniture	18,500	Capital Accounts
Carriage	1,500	Dhiraj	90,000
Wages	30,000	Suraj	50,000
Bills Receivable	5,000
Sundry Debtors	32,000
Conveyance	4,000
Salaries	10,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
	352,500		352,500

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.

Write the word/phrase/term, which can substitute the following sentence.

The account to which all adjustments are made when capital is fixed.

Write the word/phrase/term, which can substitute the following sentence.

Order in which fixed assets are recorded first in the Balance Sheet.

Write the word/phrase/term, which can substitute the following sentence.

The account in which selling expenses of the business are recorded.

State whether the following statement is True or False with reasons.

Balance Sheet is an Account.

State whether the following statement is True or False with reasons.

Wages paid for the installation of Machinery is a Revenue expenditure.

State whether the following statement is True or False with reasons.

Income received in advance is a liability.

State whether the following statement is True or False with reasons.

Bank loan is a current liability.

Find odd one.

Partners are _____ liable for the debts of the firm.

If partners Current Account shows ______ balance it is shown to the liability side of Balance sheet

Assets which are held in the business for a long period are called ______.

When goods are distributed as free samples, it is treated as ___________of the business.