From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date Trial Balance as on 31st March , 2009 Particulars Debit Amount Rs. Credit Amount Rs. Capital A/c's Ajay Vijay 60000 35000 Purchases and Sales 46,700 85,000 Sundry Debtors and Creditors 28000 25000 Bills Receivable and payable 5000 6000 Commission 4600 1800 Opening stock 18000 Wages 9900 Investment 13500 Postage and Telegrams 3600 Insurance 1200 Plant and Machinery 40700 Furniture 18000 Cash in hand 2500 Carriage 3200 Bad debts 400 Prepaid Rent 7000 Salaries 10500 Adjustments: 1) The closing stock is valued at Rs 31,000. 2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800. 3) Depreciate Plant and Machinery by 10%. 4) Insurance at Rs 500 is paid in advance. 5) Provide for further bad debts of Rs 1,500. 6) Commission due but not received Rs 1,200.

Trading Account For the year ended Mar. 31 2009Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 18000 Sales 85000 Purchases 46700 Closing Stock 31000 Carriage 3200 Wages 9900 11300 Add: Outstanding wages 1400 Gross Profit (Balancing Figure) 36800 116000 116000 Profit and loss Account for the year ended March 31, 2009Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Commission 4,600 Gross Profit 36800 Salaries 10,500 11,300 Commission received 1,800 3,000 Add: Outstanding Salaries 800 Add: Accrued Commission 1,200 Postage and telegram 3,600 Insurance 1,200 700 Less: Prepaid Insurance (500) Depreciation on Plant and Machinery 4,070 Bad-Debts 400 1,900 Add: Further Bad-Debts 1,500 Net Profit (Balancing Figure) Ajay 6,815 13,630 Vijay 6,815 39800 39800 Balance Sheet as on March 31, 2009 Liabilities Amount(Rs) Assets Amount(Rs) Capital of Ajay 60000 66815 Fixed Assets Add: Net Profit 6815 Investment 13500 Capital of Vijay 35000 41815 Furniture 18000 Add: Net Profit 6815 Plant and Machinery 40700 36630 Current Liabilities Less : Depreciation (4070) Creditors 25000 Current Assets Bills payable 6000 Closing Stock 31000 Outstanding Wages 1400 Debtors 28000 26500 Outstanding Salaries 800 Less: Further Bad-Debts (1500) Bills Receivable 5000 Prepaid Rent 7000 Accrued Commission 1200 Prepaid Insurance 500 Cash in Hand 2500 141830 141830

From the Following Trading Balance of M/S Ajay and Vijay You Are Required to Prepared Trading and Profit and Loss Account for the Year Ended 31st March, 2009 and Balance Sheet as on that Date

Question

From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date

Trial Balance as on 31st March , 2009

Particulars	Debit Amount Rs.	Credit Amount Rs.
Capital A/c's Ajay Vijay		60000 35000
Purchases and Sales	46,700	85,000
Sundry Debtors and Creditors	28000	25000
Bills Receivable and payable	5000	6000
Commission	4600	1800
Opening stock	18000
Wages	9900
Investment	13500
Postage and Telegrams	3600
Insurance	1200
Plant and Machinery	40700
Furniture	18000
Cash in hand	2500
Carriage	3200
Bad debts	400
Prepaid Rent	7000
Salaries	10500

Adjustments:

1) The closing stock is valued at Rs 31,000.

2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800.

3) Depreciate Plant and Machinery by 10%.

4) Insurance at Rs 500 is paid in advance.

5) Provide for further bad debts of Rs 1,500.

6) Commission due but not received Rs 1,200.

Ledger

Solution

Trading Account
For the year ended Mar. 31 2009
Dr. Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		18000	Sales	85000
Purchases		46700	Closing Stock	31000
Carriage		3200
Wages	9900	11300
Add: Outstanding wages	1400
Gross Profit (Balancing Figure)		36800
		116000		116000

Profit and loss Account
for the year ended March 31, 2009
Dr. Cr.

Particulars		Amount (Rs)	Particulars		Amount (Rs)
Commission		4,600	Gross Profit		36800
Salaries	10,500	11,300	Commission received	1,800	3,000
Add: Outstanding Salaries	800		Add: Accrued Commission	1,200
Postage and telegram		3,600
Insurance	1,200	700
Less: Prepaid Insurance	(500)
Depreciation on Plant and Machinery		4,070
Bad-Debts	400	1,900
Add: Further Bad-Debts	1,500
Net Profit (Balancing Figure)
Ajay	6,815	13,630
Vijay	6,815
		39800			39800

Balance Sheet

as on March 31, 2009

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital of Ajay	60000	66815	Fixed Assets
Add: Net Profit	6815		Investment		13500
Capital of Vijay	35000	41815	Furniture		18000
Add: Net Profit	6815		Plant and Machinery	40700	36630
Current Liabilities			Less : Depreciation	(4070)
Creditors		25000	Current Assets
Bills payable		6000	Closing Stock		31000
Outstanding Wages		1400	Debtors	28000	26500
Outstanding Salaries		800	Less: Further Bad-Debts	(1500)
			Bills Receivable		5000
			Prepaid Rent		7000
			Accrued Commission		1200
			Prepaid Insurance		500
			Cash in Hand		2500
		141830			141830

shaalaa.com

Partnership Final Accounts

Is there an error in this question or solution?

Q 1 Q 15 Q 2

Chapter 2: Partnership Final Accounts - Practical Problems [Page 66]

APPEARS IN

Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board

Chapter 2 Partnership Final Accounts
Practical Problems | Q 1 | Page 66

Video TutorialsVIEW ALL [1]

view
Video Tutorials For All Subjects
Partnership Final Accounts

video tutorial01:23:03

RELATED QUESTIONS

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

Return outward are deducted from __________________.

What do you mean by intangible asset?

Surekha and Sangita decided to undertake a venture jointly. They agreed to share profits and losses in the ratio of 3 : 2. Surekha supplied from her own stock goods worth Rs. 4,00,000 and paid Rs. 9,900 for freight and Rs. 2,400 for insurance. Sangita purchased goods of Rs. 3,90,000 for the venture and paid Rs 14,000 for selling expenses. Sangita accepted a bill for 3 months of Rs. 1,90,000 drawn by Surekha as an advance. The bill was discounted immediately by Surekha for Rs. 1,84,000 and the amount of discount was charged to Joint Venture Account. Sangita sold all the goods for Rs. 10,00,000. At end of the venture, the accounts were settled. Give journal entries in the books of Surekha.

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

Credit balance of Profit and Loss Account.

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 Mahesh and Umesh, 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. Profit sharing ratio of Mahesh and Umesh was 3/5th and 2/5th respectively.

Trial Balance as on 31^st March, 2013
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Investments	56,000	Capital A/c:
Carriage	7,000	Mahesh	1,62,000
Loose Tools	17,000	Umesh	1,08,000
Building	1,50,000	Current A/c:
Salary	13,000	Mahesh	16,200
Audit fees	8,500	Umesh	10,800
Opening stock	83,000	Sundry Creditors	99,000
Wages	7,500	Sales	4,20,000
Purchases	1,97,000	Bank Overdraft	56,400
Motive Power	15,000
Bad Debts	6,400
Printing and Stationery	4000
Debtors	96,000
Cash at Bank	52,000
Machinery	72,000
Motor Van	88,000
	8,72,400		8,72,400

Adjustments:

1) Stock on hand on 31st March, 2013 was valued at Rs 76,000.

2) Interest on partner’s capital at 5% p.a. was allowed.

3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use.

4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales.

5) Rs. 2,500 due from customer is not recoverable.

6) Depreciate Motor Van at 8% p.a. and Building at 7% p.a.

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.

A ______ is an intangible asset.