Question

Snehal and Deepali are partners sharing profits and losses in their capital ratio. Following is the Trial Balance as on 31st March 2021:

Trial Balance As on 31st March 2021
Particulars	Debit Amount	Particulars	Credit Amount (१)
Plant and Machinery	27,600	Capital Accounts:
Carriage Outward	2,600	Snehal	1,60,000
Wages and Salary	15,200	Deepali	80,000
Sundry Debtors	1,24,000	Sundry Creditors	68,000
General Expenses	5,000	Sales	2,96,000
Stock (1st April 2020)	1,79,000	R.D.D.	2,400
Motor Van	80,000	Purchase Return	12,000
Office Rent	10,000
Freehold Property	46,000
Sales Return	16,000
Advertisement (For 2 Years)	8,000
Salaries	9,000
Purchases	96,000
	6,18,400		6,18,400

Adjustments:

1. Closing stock is valued at 1,76,000.
2. Outstanding wages 1,600.
3. Reserve for doubtful debts on Debtors at 5% is to be created.
4. Depreciate motor van by 5% and plant and machinery by 10% p.a.

Prepare:

1. Trading Account
2. Profit and Loss Account
3. Balance Sheet as on 31st March 2021

Answer 1

Dr.	Trading and Profit and Loss Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock		1,79,000	By Sales	2,96,000	2,80,000
To Purchases	96,000	84,000	Less: Sales Return	16,000
Less: Purchase Return	12,000		By Closing Stock		1,76,000
To Wages and Salary	15,200	16,800
Add: Outstanding	1,600
To Gross Profit c/d		1,76,200
		4,56,000			4,56,000
To Carriage Outward		2,600	By Gross Profit b/d		1,76,200
To General Expenses		5,000
To Office Rent		10,000
To Advertisement	8,000	4,000
Less: prepaid	4,000
To Salaries		9,000
To New R.D.D	6,200	3,800
Less: Old R.D.D	2,400
To Depreciation:		6,760
Motor van 5%	4,000
Plant and machinery 10%	2,760
To Net Profit transferred to capital A/c		1,35,040
Snehal	90,027
Deepali	45,013
		1,76,200			1,76,200

 

Balance Sheet as on 31st March 2021
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Accounts:			Freehold Property		46,000
Snehal	1,60,000	2,50,027	Plant & Machinery	27,600	24,840
Add: Net Profit	90,027		Less: Depreciation	2,760
Deepali	80,000	1,25,013	Motor Van	80,000	76,000
Add: Net Profit	45,013		Less: Depreciation	4,000
Sundry Creditors		68,000	Sundry Debtors	1,24,000	1,17,800
Outstanding Wages		1,600	Less: New RDD (5%)	6,200
			Closing Stock		1,76,000
			Prepaid Advertisement		4,000
		4,44,640			4,44,640