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 - Book Keeping and Accountancy

Question

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.

Ledger

Solution

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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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
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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.

Given below is the Trial Balance of M/s Roma and Mona partnership firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date

Trial Balance as on 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Stock on 1^st April, 2011	52000	Provident fund	50000
Sundry Debtors	84000	Interest on P.F. Investment	2800
Bad debts	3000	Sundry Creditors	84000
Premises	78000	Rent received	9600
Salaries	28000	Reserve for Doubtful Debts	2000
Motor Vehicles	50000	Discount received	3600
Purchases	176000	Sales	320000
Provident Fund Investment	50,000	Capital A/c-
Provident Fund contribution	5500	Roma	50000
Wages	22000	Mona	50000
Rent (for 10 months)	16,000
Office Expenses	5,000
Discount allowed	2,500
	572000		572000

Adjustments:

1) Stock on 31st March, 2012 was valued at Rs 80,000.

2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.

3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.

4) Provide reserve for discount on debtors at 2% and on creditors at 3%.

5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.

6) Depreciate Motor Vehicle at 5% p.a.

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.

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.

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.

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.

Keshav and Madhav were partners sharing the profits and losses in the ratio of 2:3. Their Balance Sheet is as follows:

Balance Sheet as on 31^st March, 2011

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Capital Accounts :		Live stock		20000
Keshav	250000	Building		138000
Madhav	260000	Investment		45000
Creditors	8500	Loose Tools		38000
		Debtors	90000	72000
		(-)R.D.D	18000	72000
		Profit and Loss A/c		15000
		Closing Stock		104500
		Cash in Hand		86000
	518500			518500

On 1^st April, 2011 they admitted Uddhav on the following terms:

1) The new profit sharing ratio is equal.

2) Uddhav brings Rs 2,00,000 as his capital and Rs 80,000 as share of goodwill in cash.

3) Prepaid insurance of Rs 7,500 was not recorded in the books.

4) Loose tools were found undervalued by 5% and Building was found overvalued by 15% in the books.

5) All debtors are considered as good and out of creditors Rs 500 is no longer payable.

6) The market Value of Investment is 50% more than its book value.

Prepare, Profit and Loss Adjustment in A/c, Capital Accounts of partners and Balance Sheet of the new firm.

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.

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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.

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