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

In the books of the firm. Revaluation A/c Particulars Rs. Rs. Particulars Rs. Rs. To Stock A/c 6000 By Buildings A/c 12000 By R.D.D. [3000 - 1800] 1200 To Profit on Revaluation A/c Darshan's Capital A/c 4800 Amar's Capital A/c 2400 7200 13200 13200 Partners Capital A/c Particulars Darshan Amar Ranjit Particulars Darshan Amar Ranjit By Balance b/d 96000 64000 By General Reserve 12000 6000 By Profit and Loss A/c 4000 2000 By Cash A/c 48000 By Goodwill A/c 12000 6000 To Balance c/d 128800 80400 48000 By Profit on Revaluation A/c 4800 2400 128800 80400 48000 128800 80400 48000 Balance Sheet as on 1st April 2016 Liabilities Rs. Rs. Assets Rs. Rs. Creditors 80000 Building 100000 Pawan's Loan A/c 26000 (+) Appreciation 12000 112000 (-) Repaid - 26000 Nil Furniture 20000 Equipments 10000 Capital A/c Debtors 63000 Darshan 128800 (-) R.D.D. - 1800 61200 Amar 80400 Stock 84000 Ranjit 48000 257200 (-) Depreciation - 6000 78000 Cash Balance 38000 Goodwill 18000 337200 337200 Cash A/c Particulars Rs. Rs. Particulars Rs. Rs. To Balance b/d 16000 Pawan't Loan Repaid 26000 To Ranjit's Capital A/c 48000 By Balance c/d 38000 64000 64000 Goodwill A/c Particulars Rs. Rs. Particulars Rs. Rs. To Darshan's Capital A/c 12000 To Amar's Capital A/c 6000 By Balance c/d 18000 18000 18000

Darshan and Amar Were Partners Sharing Profit and Losses in the Proportion of 2: 1. Their Balance Sheet is as Follows:

Question

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

Journal Entry

Solution

In the books of the firm.

Revaluation A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Stock A/c		6000	By Buildings A/c		12000
			By R.D.D. [3000 - 1800]		1200
To Profit on Revaluation A/c
Darshan's Capital A/c	4800
Amar's Capital A/c	2400	7200
		13200			13200

Partners Capital A/c

Particulars	Darshan	Amar	Ranjit	Particulars	Darshan	Amar	Ranjit
				By Balance b/d	96000	64000
				By General Reserve	12000	6000
				By Profit and Loss A/c	4000	2000
				By Cash A/c			48000
				By Goodwill A/c	12000	6000
To Balance c/d	128800	80400	48000	By Profit on Revaluation A/c	4800	2400

	128800	80400	48000		128800	80400	48000

Balance Sheet as on 1st April 2016

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Creditors		80000	Building	100000
Pawan's Loan A/c	26000		(+) Appreciation	12000	112000
(-) Repaid	- 26000	Nil	Furniture		20000
			Equipments		10000
Capital A/c			Debtors	63000
Darshan	128800		(-) R.D.D.	- 1800	61200
Amar	80400		Stock	84000
Ranjit	48000	257200	(-) Depreciation	- 6000	78000
			Cash Balance		38000
			Goodwill		18000
		337200			337200

Cash A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Balance b/d		16000	Pawan't Loan Repaid		26000
To Ranjit's Capital A/c		48000


			By Balance c/d		38000
		64000			64000

Goodwill A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Darshan's Capital A/c		12000
To Amar's Capital A/c		6000


			By Balance c/d		18000
		18000			18000

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Partnership Final Accounts

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Q 3.A Q 2.B Q 3.B

2017-2018 (July) Set 1

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RELATED QUESTIONS

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.

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.

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.

A ______ is an intangible asset.

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

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

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

Profit and Loss Account is a Real Account.

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.

Goodwill is an intangible asset.

Find odd one.

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

The expenses paid for trading purpose are known as _______ expenses.

Cash receipts which are recurring in nature are called as__________ Receipts.

Expenses which are paid before due date are called as _____.

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

Trading Account is prepared on the basis of ______ expenses.

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

Answer in one sentence only.

Why wages paid for installation of machinery are not shown in Trading Account?

Answer in one sentence only.

What do you mean by indirect incomes?

Do you agree/disagree with the following statement:

Profit and Loss Account reflects the true Financial position.

Do you agree/disagree with the following statement:

Sold but undispatched goods must be part of valuation of closing stock.

Do you agree/disagree with the following statement:

Carriage Inward is a selling and distribution overhead.

Do you agree/disagree with the following statement:

Free distribution of goods is debited to the trading account.

Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and Profit and Loss Account for the year ended 31^st March 2019 and Balance Sheet as of that date.

Trial Balance as on 31^s^t March 2019

Particulars	Debit ₹	Credit ₹
Purchases and Sales	65,000	1,85,500
Works Manager's Salary	2,300
Capital:
- Sucheta		75,000
- Gayatri		40,000
Opening Stock	18,700
Debtors and Creditors	47,500	35,000
Wages and Salaries	4,000
Bills Receivable	22,000
Bills Payable		27,300
Discount		400
Motive Power	1,350
Custom duty	1,500
Interest		1,300
Unproductive Wages	3,000
Audit fees	2,500
Rent	1,800
Conveyance	2,000
Goodwill	25,000
Copyrights	20,000
Building	88,000
Partner (Sucheta's) Loan		6,150
Investments	40,000
Cash at Bank	26,000
	3,70,650	3,70,650

Adjustments:

Stock on 31st March 2019 was valued at ₹ 19,700.
Goods costing ₹ 3,000 distributed as a free sample.
Motive Power includes ₹ 500 paid for the deposit of the Power Meter.
Depreciate Building @ 5%.
Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors.
Bills Receivable included dishonored of Bill of ₹ 4,000.

Archana and Prerana are partners, sharing Profits and Losses in the ratio 2: 1 with the help of 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 31^s^t March 2019

Debit Balance	Amount ₹	Credit Balance	Amount ₹
Stock (1/4/2018)	8,560	Capital:
Patents	2,000	Archana	40,000
Sundry Debtors	18,500	Prerana	20,000
Stock of Stationary	3,000	Other Loans	3,000
Trade Mark	2,000	Reserve fund	1,000
Bills Receivable	6,300	Sundry Creditors	17,500
Electricity charges	1,450	Bills Payable	5,000
Wages	950	Purchase Return	1,000
Heating & Lighting	1,000	R.D.D	500
Trade Expenses	850	Sales	30,200
Sales Return	400	Interest	310
Land & Building	22,000
Furniture	13,000
Cash at Bank	5,000
Investments	7,500
Drawings :
Archana	1,200
Prerana	900
Bad debts	200
Purchases	23,700
	1,18,510		1,18,510

Adjustments:

1) Stock on 31^st March 2019 is valued at Cost Price ₹ 12,000 and Market Price ₹ 17,000.

2) Our customer Mr. Shekhar failed to pay his dues of ₹ 800.

3) 1/8^th of Patents are to be written off.

4) A part of Furniture ₹ 5,000 is purchased on 1^st Oct 2018.

5) Depreciation on Land & Building 10% and on Furniture 5%.

6) Outstanding Expenses Wages ₹ 300 and Electricity Charges ₹ 200.

7) Allow Interest on Capital 3%.

Nana and Nani are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments in Profit & Loss A/c and Balance Sheet with the help of the following information.

Trial Balance as on 31st March 2019

Debit Balance	Amount ₹	Credit Balance	Amount ₹
Insurance	15,000	Capital A/c
Land and building	50,000	Nana	50,000
(Addition of 20,000 w.e.f 1^st July 2018)		Nani	50,000
Salaries	5,000	10% Bank loan taken on 1^st Oct. 2018	30,000
Export Duty	2,500	Interest	1,500
Interest	1,000	Bills Payable	8,000
Furniture	40,000
Debtors	26,000
	1,39,500		1,39,500

Adjustments :

1) Gross profit amounted to ₹ 34,500.

2) Insurance Paid for 15 months w.e.f. 1. 4. 2018.

3) Depreciate Land and Building at 10% p.a. and Furniture at 5% p.a.

4) Write off ₹ 1,000 for Bad Debts and maintain R.D.D at 5% on Sundry Debtors.

5) Closing Stock is valued at ₹ 34,500.

Asha and Nisha are partners sharing profits and losses in equal ratio. From the following Trial Balance and adjustments you are required to prepare Final Accounts:

Trial Balance as on 31st March, 2019
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Purchases	48,000	Capital accounts:
Salaries	7,500	Asha	80,000
Wages	2,800	Nisha	40,000
Advertisement (2 years)	4,000	Bank Overdraft	34,000
Sales Return	8,000	Sales	1,48,000
Motor Van	63,000	R.D.D.	1,200
Stock (1. 4. 2018)	94,500	Purchase Return	6,000
Sundry Debtors	62,800
Coal, Gas and Fuel	1,000
Plant and Machinery	17,600
	3,09,200		3,09,200

Adjustments:

Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
Asha and Nisha withdrew goods from business ₹ 3,000 and ₹ 2,000 respectively for their personal use.
Depreciate Motor Van by 5% and Plant and Machinery by 7%.
Reserve for Doubtful debts on Debtors at 5% is to be created.
Outstanding Wages ₹ 800.

Kranti & Sumangala are Partners sharing Profits and Losses in their Capital ratio. From the Trial Balance given below and Adjustments, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as of that date.

Trial Balance as on 31st March, 2019
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Stock (1/4/2018)	32,500	Capital:
Purchases	40,000	Kranti	1,20,000
Sundry Debtors	1,00,000	Sumangala	40,000
Bills Receivable	8,500	Sales	60,000
Wages	3,000	Sundry Creditors	30,000
Investment	32,000	Bills Payable	15,000
Postage	2,700	Commission	325
Insurance	7,500	Purchases Returns	1,000
Plant & Machinery	15,000
Salaries	4,850
Prepaid Rent	2,000
Bad-debts	500
Furniture	12,500
Cash in Hand	3,775
Sales Return	1,500
	2,66,325		2,66,325

Adjustments:

Closing Stock is valued at Cost Price ₹ 28,000 and Market Price ₹ 32,000.
Insurance is paid up to 30th June 2019.
Outstanding Expenses - Wages ₹ 800, Salaries ₹ 700.
Book value of Plant and Machinery is reduced to ₹ 13,000.
Depreciate Furniture by 5% p.a.
Provide further Bad debts of ₹ 800.
Goods of ₹ 3,000 distributed as a free sample.

Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended 31st march 2020 and balance sheet as on that date.

Trial Balance as on 31st March, 2020
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Stock (1/4/2019)	65,000	General Reserve	14,500
Bills Receivable	28,000	Capital:
Wages and Salaries	9,000	Sun	1,60,000
Sundry Debtors	1,32,500	Moon	1,20,000
Bad-debts	1,000	Creditors	98,000
Purchases	1,48,000	R.D.D.	1,800
Motor car	68,000	Sales	2,85,500
Machinery	1,14,800	Outstanding Wages	700
Audit Fees	1,200	Purchases Returns	4,000
Sales Return	2,000	Discount	1,800
Discount	2,300
Building	75,000
Cash at Bank	12,000
10% Investment	20,000
Advertisement (Paid for 9 months)	4,500
Royalties	3,000
	6,86,300		6,86,300

Adjustment and Additional Information:

Closing Stock ₹ 40,000.
Depreciate Building and Machinery @ 5% and 3% respectively.
Bills Receivable included dishonoured bill of ₹ 3000.
Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts.
Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
Goods of ₹ 6000 were sold but no entry was made in the books of accounts.

From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below.

Trial Balance as on 31st March, 2020
Debit Balance	Debit (₹)	Credit (₹)
Stock (1/4/2018)	48,000
Capital - Riddhi		50,000
Siddhi		30,000
Purchases	22,500
Wages	800
Carriage Inward	1,000
Sundry Creditors		27,600
Bills Payable		20,000
Cash in hand	2,850
Insurance	1,200
Sundry Debtors	32,000
Bank Overdraft		18,000
Carriage outward	900
Land and Building	42,500
Furniture	38,700
Sales		47,000
Purchase Return		500
Sales Return	400
Rent		1,800
Bad-debts	300
R.D.D		350
Discount	700	1,000
Travelling Expenses	250
Advertisements	4,150
	1,96,250	1,96,250

Adjustments:

Closing stock ₹ 48,700.
Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200.
Depreciate Land and Building by 10% and Furniture by 5%.
Insurance Paid in Advance ₹ 300.
Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

From the following information, calculate Current Assets:

Debtors ₹ 60,000, Creditors ₹ 30,000, Bills payable ₹ 20,000, Stock ₹ 30,000, Loose tools ₹ 10,000, Bank overdraft ₹ 10,000.

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

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

State whether the following statement is True or False with reason:

Profit and Loss Account is a Real Account.

Registration of Partnership is ______ in India.

Complete the following Table:

Creditors	Bills Payable	Third-Party Liabilities
16,000	12,000	?

Find the odd one:

Building, capital, reserve fund, bank loan

Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.

From the following Trial Balance and Adjustments of Rushabh and Yesha, you are required to prepare final accounts as on 31st March, 2023. Profit and Loss sharing ratio of partners is their capital ratio.

Trial Balance as on 31st March, 2023
Particulars (Name of Accounts)	Debit (₹)	Credit (₹)
Capital and Drawings :
Rushabh	40,000	2,00,000
Yesha	28,000	1,00,000
Purchases and Sales	2,80,000	5,21,000
Debtors and Creditors	1,80,000	1,20,000
Sales Return and Purchase Return	4,000	6,000
Bills Receivable and Bills Payable	30,000	41,600
Cash Balance and Bank Overdraft	2,000	28,000
Bad Debts and Provision for Doubtful Debts	800	2,600
Wages and Outstanding Wages	70,000	4,000
Machinery	80,000
Furniture	24,000
Opening Stock of Goods	92,200
Prepaid Insurance	400
Salaries	46,000
Insurance Premium	4,000
Rent -Taxes	24,000
Advertisement Expenses	5,800
Goodwill	1,44,000
Leasehold Building	28,000
8 % Loan (From 1111/22)		60,000
	10,83,200	10,83,200

Adjustments :

(1) Closing stock is of ₹ 2,20,000. Its market value is 20 % more than its value.

(2) Calculate interest on capital @ 6 % p.a.

(3) Interest on drawings to be charged from partners: Rushabh ₹ 1,800, Yesha ₹ 1,200

(4) Provision for doubtful debts is to be kept at 5 %.

(5) Outstanding expenses at the end of the year: Rent ₹ 600, Salary ₹ 1,900.

(6) Provide depreciation at 10 % on machinery and at 5 % on furniture.

(7) Write off ₹ 8,000 from Leasehold Building.

Credit balance of Profit and Loss Suspense Account is shown in the Balance Sheet on ______ side.

From the following Trial Balance and Adjustments given below of Rutul and Atul, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2023
Debit Balances	Amount (₹)	Credit Balances	Amount (₹)
Purchases	71,000	Sales	1,16,400
Sundry Debtors	80,000	Sundry Creditors	51,400
Sales Returns	2,000	Purchase Returns	1,000
Opening Stock	36,200	R.D.D.	1,600
Bad Debts	1,000	Discount	100
Land & Building	50,000	Commission	500
Furniture	40,000	Capital A/cs:
Discount	2,000	Rutul	1,00,000
Royalties	1,400	Atul	60,000
Rent	3,800
Salaries	6,000
Wages	1,600
Insurance	3,000
Drawing:
Rutul	4,000
Atul	2,000
Cash at Bank	23,000
Cash in Hand	4,000
	3,31,000		3,31,000

Adjustments:

(1) Closing stock valued at ₹ 44,000.

(2) Write off ₹ 1,800 for bad and doubtful debts and create a provision for reserve for doubtful debts ₹ 2,000.

(3) Create a provision for discount on debtors @ 3% and on creditors @ 5%.

(4) Outstanding expenses: Wages ₹ 1,400 and Salaries ₹ 1,600.

(5) Insurance is paid for 15 months, w.e.f. 1st April, 2022.

(6) Depreciate Land and Building @ 5%.

(7) Rutul and Atul are sharing Profits and Losses in their Capital Ratio.

Find the odd one:

From the following Trial Balance of Hira and Manek, prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2023
Debit Balances	Amount (₹)	Credit Balances	Amount (₹)
Stock (1 /4/2022)	50,000	Bank Overdraft	10,000
Debtors	1,61,000	Bills Payable	25,000
Bills Receivable	20,000	Creditors	1,36,000
Purchases	4,17,000	Sales	6,50,000
Sales Returns	2,000	Outstanding Rent	4,000
Carriage Inward	6,000	Unpaid Wages	3,000
Carriage Outward	9,000	Capital A/cs:
Motor Vehicle	1,10,000	Hira	1,50,000
General Expenses	3,600	Manek	1,50,000
Export Duty	1,800	Purchase Returns	2,000
Advertisement (For 3 years from 1/10/2022)	9,600
Printing and Stationery	2,400
Drawings:
Hira	7,000
Manek	4,000
Leasehold Premises	2,20,000
Cash at Bank	90,000
Furniture	16,600
	11,30,000		11,30,000

Adjustments:

(1) Closing stock is valued at ₹ 64,000.

(2) Provide provision for doubtful debts ₹ 4,000.

(3) Create reserve for discount on debtors @ 3%

(4) Value of leasehold premises on 31st March, 2023 ₹ 2,00,000.

(5) Outstanding expenses: Printing and Stationery ₹ 1,000.

Find an odd one.

Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare 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 Balances	Amount (₹)	Cebit Balances	Amount (₹)
Insurance	30,000	Capital Accounts:
Land and Building ((Addition of ₹ 40,000 wef. 1st July, 2018))	1,00,000	Mama	1,00,000
Salaries	10,000	Kaka	1,00,000
Export duty	5,000	10% Bank Loan (taken on1st Oct. 2018)	60,000
Interest	2,000	Interest	3,000
Furniture	80,000	Bills payable	16,000
Debtors	52,000		-
	2,79,000		2,79,000

Adjustment:

Gross profit amounted to ₹ 69,000.
Prepaid insurance ₹ 7,500.
Depreciate Land and Building at 10% p.a. and Furniture 5% p.a.
Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
Closing stock is valued at ₹ 69,000.

Find odd one.

Darshan and Amar Were Partners Sharing Profit and Losses in the Proportion of 2: 1. Their Balance Sheet is as Follows:

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