Question

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.

Answer 1

In the books of Dhiraj and Suraj

                             Trading A/c For the year ended 31.3.13

Particulars	Amount (Rs.)	Amount (Rs.)	Particulars	Amount (Rs.)	Amount (Rs.)
To Opening Stock		32,000	By Sales		193,500
To Carriage		1,500
To Wages	30,000
(-) Prepaid	(3,000)	27,000
To Purchases	64,000
(-) Return	2,500	61,500
			By Closing Stock		25000
To Gross Profit C/d		96,500
		218500			218500

 

              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 

 

Particulars	Dhiraj Rs.	Suraj Rs.	Particulars	Dhiraj Rs.	Suraj Rs.
			By Balance b/d	90000	50000
			By Net Profit B/d	46500	23250
To Balance C/d	136500	73250
	136500	73250		136500	73250

                              Balance sheet as on 31.3.2013

Liabilities	Amount Rs.	Amount Rs.	Assets	Amount Rs.	Amount Rs.
Capital A/c			Plant and Machinery	30000
Dhiraj	136500		(-) Depreciation	- 1500	28500
Suraj	73250	209750	Furniture		18500
Sundry Creditors		16500	Bills Receivable		5000
			Sundry Debtors	32000
			(-) F.B.D.	-1500	30500
			Cash in Hand		14750
			Patents		25000
			Closing Stock		25000
			Prepaid Wages		3000
			Land & Building	83500
			(-) Repairs	-3500
				80000
			(-) Depreciation	- 4000	76000
		226250			226250