Amit bhai and Narendra bhai are in Partnership 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 2019 and Balance Sheet as on that date. Trial Balance as on 31st March 2019 Debit Balance Amount ₹ Credit Balance Amount ₹ Plant & Machinery 2,80,000 Capital A/c: Factory Building 75,000 Amitbhai 3,50,000 Sundry Debtors 28,700 Narendrabhai 3,00,000 Purchases 85,500 Sales 1,80,000 Bad Debts 500 Bills Payable 8,500 Sales Return 2,200 Discount 1,200 10% Govt. Bond(Purchased on 1st Oct 2018) 40,000 Creditors 38,500 Import Duty 1,800 R.D.D. 2,700 Legal Charges 2,000 Bank Loan 15,000 Motive Power 12,000 Purchases Return 2,000 Warehouse Rent 1,800 Cash in Hand 20,000 Cash at Bank 70,000 Advertisement (for 2 years, w.e.f 1st Jan 2019) 10,000 Salaries 3,800 Rent 1,500 Drawings : Amitbhai 2,400 Narendrabhai 3,200 Furniture 1,95,800 Bills Receivable 20,700 Freehold Property 41,000 8,97,900 8,97,900 Adjustments: 1) Stock on hand on 31st March 2019 was valued at ₹ 43,000. 2) Uninsured goods worth ₹ 8,000 were stolen. 3) Create R.D.D at 2% on Sundry debtors. 4) Mr. Patil, our customer becomes insolvent and could not pay his debts of ₹ 500. 5) Outstanding Expenses - Rent ₹ 800 and Salaries ₹ 300 6) Depreciate Factory Building by ₹ 2,500 and Furniture by ₹ 1,800

In the books of Amitbhai and Narendrabhai Dr. Trading and Profit and Loss Account for the year ended on 31st March 2019 Particulars Amount (₹) Amount(₹) Particulars Amount (₹) Amount (₹) To Purchases 85,500 By Sales 1,80,000 (-) Purchase Return 2,000 83,500 (-) Sales Return 2,200 1,77,800 To Import Duty 1,800 By Goods Stolen Away 8,000 To Motive Power 12,000 By Closing Stock 43,000 To Gross Profit c/d 1,31,500 2,28,800 2,28,800 To Warehouse Rent 1,800 By Gross Profit b/d 1,31,500 To R.B.D.D. A/C By Discount 1,200 Bad debts 500 By O/s Interest on Govt. Bonds 2,000 (+) New Bad debts 500 By R.D.D. A/c (Excess Reserve)(2,700 – 1,564) 1,136 (+) New R.D.D. 564 1564 (-) Old Reserve 2700 To Legal Charges 2,000 To Advertisement Expenses 10,000 (-) Prepaid Adv. Exp. 8,750 1,250 To Salaries 3,800 (+) O/s Salaries 300 4,100 To Rent 1,500 (+) O/s Rent 800 2,300 To Depreciation on: Furniture 1,800 Factory Building 2,500 4,300 To Loss due to Theft 8,000 To Net Profit Transferred to Capital A/c: Amitbhai 56,043 Narendrabhai 56,043 1,12,086 1,35,836 1,35,836 Balance Sheet as on 31st March 2019 Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹ Capital Account: Plant & Machinery 2,80,000 Amit bhai: Factory Building 75,000 Opening Balance 3,50,000 (-) Depreciation 2,500 72,500 (+) Net Profit 56,043 Furniture 1,95,800 (-) Drawings 2,400 4,03,643 (-) Depreciation 1,800 1,94,000 Narendra bhai: Closing Stock 43,000 Opening Balance 3,00,000 Sundry Debtors 28,700 (+) Net Profit 56,043 (-) B.D. (New) 500 (-) Drawings 3,200 3,52,843 28,200 Bills Payable 8,500 (-) R.D.D. (New) 564 27,636 Creditors 38,500 10 % Govt. Bond 40,000 Bank Loan 15,000 O/s Interest on Govt. Bond 2,000 O/s expenses: Cash in Hand 20,000 Rent 800 Cash at Bank 70,000 Salaries 300 1,100 Prepaid Advertisement Expense 8,750 Bills Receivable 20,700 Freehold property 41,000 8,19,586 8,19,586 Notes : (1) Import duty and Motive power are recorded in the Trading A/c. (2) 10% govt. bond is an investment. It was purchased on 1.10.2018. &there4; Interest is calculated for six months. Interest on Govt. Bond = `40,000 × 6/12 × 10/100` = ₹ 2,000 (3) Adv. exp. paid for 2 years from 01.01.2019. Up to 31.3.2019, 3 months adv. exp. is written off to Profit and Loss A/c. It is calculated as below: `10,000 × 3/24` = ₹ 1,250 Prepaid adv. exp. = 10,000 – 1,250 = ₹ 8,750

Amitbhai and Narendrabhai are in Partnership Sharing Profits and Losses equally.ar ended 31st March, 2019 and BalanceSheet as on that date.Trial Balance as on 31st March, 2019

प्रश्न

Amit bhai and Narendra bhai are in Partnership 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 2019 and Balance Sheet as on that date.

Trial Balance as on 31st March 2019

Debit Balance	Amount ₹	Credit Balance	Amount ₹
Plant & Machinery	2,80,000	Capital A/c:
Factory Building	75,000	Amitbhai	3,50,000
Sundry Debtors	28,700	Narendrabhai	3,00,000
Purchases	85,500	Sales	1,80,000
Bad Debts	500	Bills Payable	8,500
Sales Return	2,200	Discount	1,200
10% Govt. Bond (Purchased on 1^st Oct 2018)	40,000	Creditors	38,500
Import Duty	1,800	R.D.D.	2,700
Legal Charges	2,000	Bank Loan	15,000
Motive Power	12,000	Purchases Return	2,000
Warehouse Rent	1,800
Cash in Hand	20,000
Cash at Bank	70,000
Advertisement (for 2 years, w.e.f 1^st Jan 2019)	10,000
Salaries	3,800
Rent	1,500
Drawings :
Amitbhai	2,400
Narendrabhai	3,200
Furniture	1,95,800
Bills Receivable	20,700
Freehold Property	41,000
	8,97,900		8,97,900

Adjustments:

1) Stock on hand on 31^st March 2019 was valued at ₹ 43,000.

2) Uninsured goods worth ₹ 8,000 were stolen.

3) Create R.D.D at 2% on Sundry debtors.

4) Mr. Patil, our customer becomes insolvent and could not pay his debts of ₹ 500.

5) Outstanding Expenses - Rent ₹ 800 and Salaries ₹ 300

6) Depreciate Factory Building by ₹ 2,500 and Furniture by ₹ 1,800

खातेवही

उत्तर

In the books of Amitbhai and Narendrabhai

Dr.	Trading and Profit and Loss Account for the year ended on 31^st March 2019
Particulars		Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Purchases		85,500		By Sales	1,80,000
(-) Purchase Return		2,000	83,500	(-) Sales Return	2,200	1,77,800
To Import Duty			1,800	By Goods Stolen Away		8,000
To Motive Power			12,000	By Closing Stock		43,000
To Gross Profit c/d			1,31,500
			2,28,800			2,28,800
To Warehouse Rent			1,800	By Gross Profit b/d		1,31,500
To R.B.D.D. A/C				By Discount		1,200
Bad debts		500		By O/s Interest on Govt. Bonds		2,000
(+) New Bad debts		500		By R.D.D. A/c (Excess Reserve)(2,700 – 1,564)		1,136
(+) New R.D.D.		564
		1564
(-) Old Reserve		2700
To Legal Charges			2,000
To Advertisement Expenses		10,000
(-) Prepaid Adv. Exp.		8,750	1,250
To Salaries		3,800
(+) O/s Salaries		300	4,100
To Rent		1,500
(+) O/s Rent		800	2,300
To Depreciation on:
Furniture		1,800
Factory Building		2,500	4,300
To Loss due to Theft			8,000
To Net Profit Transferred to Capital A/c:
Amitbhai		56,043
Narendrabhai		56,043	1,12,086
			1,35,836			1,35,836

Balance Sheet as on 31st March 2019

Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital Account:			Plant & Machinery		2,80,000
Amit bhai:			Factory Building	75,000
Opening Balance	3,50,000		(-) Depreciation	2,500	72,500
(+) Net Profit	56,043		Furniture	1,95,800
(-) Drawings	2,400	4,03,643	(-) Depreciation	1,800	1,94,000
Narendra bhai:			Closing Stock		43,000
Opening Balance	3,00,000		Sundry Debtors	28,700
(+) Net Profit	56,043		(-) B.D. (New)	500
(-) Drawings	3,200	3,52,843		28,200
Bills Payable		8,500	(-) R.D.D. (New)	564	27,636
Creditors		38,500	10 % Govt. Bond		40,000
Bank Loan		15,000	O/s Interest on Govt. Bond		2,000
O/s expenses:			Cash in Hand		20,000
Rent	800		Cash at Bank		70,000
Salaries	300	1,100	Prepaid Advertisement Expense		8,750
			Bills Receivable		20,700
			Freehold property		41,000
		8,19,586			8,19,586

Notes :

(1) Import duty and Motive power are recorded in the Trading A/c.

(2) 10% govt. bond is an investment. It was purchased on 1.10.2018.

∴ Interest is calculated for six months.

Interest on Govt. Bond = `40,000 × 6/12 × 10/100` = ₹ 2,000

(3) Adv. exp. paid for 2 years from 01.01.2019. Up to 31.3.2019, 3 months adv. exp. is written off to Profit and Loss A/c. It is calculated as below:

`10,000 × 3/24` = ₹ 1,250

Prepaid adv. exp. = 10,000 – 1,250 = ₹ 8,750

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Partnership Final Accounts

या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?

Q 1.Q I. H. 5.Q 2.

पाठ 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.2 (Practical Problems) [पृष्ठ ५४]

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बालभारती Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board

पाठ 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.2 (Practical Problems) | Q 1. | पृष्ठ ५४

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Partnership Final Accounts

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संबंधित प्रश्‍न

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.

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.

Credit balance of Profit and Loss 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.

Rohan and Roshan are partners in ‘Shan Traders’ 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, 2011 and Balance Sheet as on that date

Trial Balance as on 31st March, 2011
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening stock	32,000	Sales	1,93,500
Purchases	64,000	Sundry Creditors	15,000
Plant and Machinery	30,000	Unpaid Wages	1,500
Furniture	18,500	Return outward	2,500
Carriage	1,500	Capital A/c:
Wages and Salaries	35,000	Rohan	90,000
Bills Receivable	5,000	Roshan	50,000
Sundry Debtors	32,000
Conveyance	4,000
Rent, Rates and Taxes	2,000
Return Inward	3,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
	3,52,500		3,52,500

Adjustments:

Closing stock: Cost price Rs 25,000 and market price Rs 30,000.
An amount of Rs 3,500 spent for repairs to Building is debited to Building account.
Depreciate plant and Machinery and Building at 5% p.a.
Goods of Rs 750 taken by Roshan for this personal use.
Included in wages advances given to workers Rs 3,000.
Provide Rs 1,500 for bad and doubtful debts on Debtors.

Madhuri and Minakshi are in partnership sharing profits and losses in the ratio 3:2. 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, 2012 and Balance Sheet on that date.

Trial Balance as on 31st March, 2012
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Building	4,00,000	Capital A/cs -
Plant and Machinery	1,20,000	Madhuri	3,00,000
Purchases	6,50,000	Minakshi	2,00,000
Carriage	7,000	Sales	8,10,000
Opening stock	90,000	Sundry Creditors	1,00,000
Wages	35,000	Outstanding salaries	4,200
Sundry Debtors	1,50,000	8% Bank loan (Taken on 1.10.2011)	1,00,000
Salaries	28,000
Postage and Telegram	4,000
Insurance	5,000
Bad debts	3,000
Rent	4,000
Discount	3,200
Drawing A/c-
Madhuri	10,000
Minakshi	5,000
	15,14,200		15,14,200

Adjustments:

Stock on hand on 31st March, 2010 was valued at Rs 1,10,000.
Depreciate Plant and Machinery at 10% p.a. and Building at 5% p.a.
Prepaid Insurance Rs 1,500.
Create R.D.D at 5% on Sundry Debtors.
Partners are allowed interest at 5% p.a. on their capitals.
Salaries include Rs 2,500 as advance to workers.

From the following Trial Balance of M/s Sanjay and Vijay, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date after taking into consideration the adjustments given below.

Trial Balance as on 31^st March, 2013

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Salaries and wages	12000	Sales	110000
Postage and Telegram	1,750	Sundry Creditors	72700
Opening Stock	23,500	Bills Payable	40000
Plant and Machinery	70,000	10% Bank loan (Taken on 1st Oct 2012)	60000
Advertisement	5,000	Outstanding Audit fees	5900
Import duty	2,100	Capital A/c-
Bad debts	1000	Sanjay	45000
Purchases	98500	Vijay	45000
Sundry Debtors	45800
Bills Receivable	16700
Carriage outward	1800
Wages and stationery (Note 2)	14000
Printing and stationery	4600
Cash in hand	1850
Leasehold Premises	80000
	378600		378600

Adjustments:
1) Closing stock was valued at Rs 30,000.

2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.

3) Goods of Rs 2,500 distributed as free samples.

4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.

5) Depreciate Plant and Machinery at 10% p.a.

6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.

Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:

Balance sheet as on 31st March 2016

Liabilities	Amt(Rs)	Amt(Rs)	Assets	Amt(Rs)	Amt(Rs)
Capital A/cs:			Building		1,00,000
Darshan	96,000		Furniture		20,000
Amar	64,000	1,60,000	Equipments		10,000
General reserve		18,000	Debtors	63,000
Profit and Loss A/c		6,000	Less: R.D.D	3,000	60,000
Creditors		80,000	Stock		84,000
Pawans loan A/c		26,000	Cash		16,000
		2,90,000			2,90,000

On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.

(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.

Prepare:
(1) Revaluation A/c
(2) Capital A/cs of partners and
(3) Balance sheet of the new 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.

Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below:

Balance Sheet as on 31st March, 2013.
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts	11,000	Building	10,000
Anita	15,000	Machinery	10,700
Sunita	8,000	Furniture	10,000
Kavita	10,000	Debtors	5,000
Creditors	10,900	Stock	6,600
Reserve fund	4,000	Cash	6,600

On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms:

Goodwill of the firm is to be valued at ₹4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.
Assets to be revalued as under:
Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200.
R.D.D. to be maintained at 10% on debtors.
₹100 to be written off from creditors.
The amount payable to Mrs. Kavita is to be transferred to her loan account.

Prepare:

Profit and loss adjustment account.
Partner’s capital account, and
Balance Sheet of new firm as on 01.04.2013.

A ______ is an intangible asset.

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

The accounts that are prepared at the end of each accounting year.

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.

Goodwill is an intangible asset.

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

Indirect expenses are debited to Trading Account.

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.

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