Question

From the following Trial Balance and adjustments of M/s Apeksha and Pratiksha; 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:

Trial Balance as on 31.03.2013

Particulars	Debit Amount (Rs.)	Credit Amount (Rs.)
Capital Accounts
Apeksha		60000
Pratiksha		35000
Purchases and Sales	46700	85000
Sundry Debtors and Creditors	28000	25000
Bills Receivable and Bills Payable.	9600	7800
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
	212800	212800

Adjustments:

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

(2) Outstanding wages Rs. 1,400.

(3) Depreciate furniture at 10% p.a.

(4) Insurance Rs. 500 is paid in advance.

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

(6) Goods worth Rs. 2,000 withdrawn by Apeksha for her domestic use but not recorded in the books of account.

Answer 1

M/s Apeksha and Pratiksha

Trading A/c for the year ended 31.03.2013

 

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Opening Stock		18000	By Sales		85000
To Purchases		46700	By Drawing of Goods by Apeksha		2000
To Wages	9900		By Closing Stock		31000
Add: Outstanding	1400	11300
To Carriage		3200
To Gross Profit C/d		38800
		118000			118000

Profit and Loss A/c for the year ended 31.03.2013

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Salaries		10500	By Gross Profit b/d		38800
To Postage and Telegram		3600
To Insurance	1200
Less: Prepaid	500	700
To Bad debts	400
Add: N.R.D.D.	1500	1900
To Depreciation on Furniture		1800
To Net Profit Transferred to partners’s Capital Account.
Apeksha Capital A/c	10150
Pratiksha Capital A/c	10150	20300
		38800			38800

Partners’ Capital Accounts

Particulars	Apeksha	Pratiksha	Particulars	Apeksha	Pratiksha
To Drawings	2000	-	By Balance b/d	60000	35000
To Balance c/d	68150	45150	By Profit & Loss Account. [Net Profit]	10150	10150
	70150	45150		70150	45150

Balance Sheet as on 31.03.2013

Liabilities	Amount Rs.	Amount Rs.	Assets	Amount Rs.	Amount Rs.
Capital :			Plant and Machinery		40700
Apeksha	68150		Furniture	18000
Pratiksha	45150	113300	Less: Depreciation	1800	16200
Sundry Creditors		25000	Investment		13500
Bills Payable		7800	Bills Receivable		9600
Outstanding Wages		1400	Sundry Debtors	28000
			Less: R.D.D.	1500	26500
			Cash in Hand		2500
			Prepaid Rent		7000
			Closing Stock		31000
			Prepaid Insurance		500
		147500			147500