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 31st 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was valued at Rs 76,000. 2) Interest on partner’s capital at 5% p.a. was allowed. 3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use. 4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales. 5)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.

Dr. Trading Account for the year ended March 31,2013 Cr. Particulars Amount (Rs) Amount (Rs) Particulars Amount (Rs) Amount (Rs) Opening Stock 83,000 Sales 4,20,000 Purchases 1,97,000 Closing Stock 76,000 (-) Drawings by Mahesh (2,000) (-) Drawings by Umesh (1,500) 1,93,500 Carriage 7,000 Wages 7,500 Motive Power 15,000 Gross Profit (Balancing Figure) 1,90,000 4,96,000 4,96,000 Dr. Profit and Loss Account for the year ended March 31, 2013 Cr. Particulars Amount (Rs) Amount (Rs) Particulars Amount (Rs) Amount (Rs) Interest on Capital: Gross Profit 1,90,000 Mahesh 8,100 Umesh 5,400 13,500 Depreciation on: Motor Van 7,040 Building 10,500 17,540 Bad Debts 6,400 (+) Further Bad Debts 2,500 8,900 Salary to Mahesh 6,500 Commission to Umesh 8,400 Salary 13,000 Audit fees 8,500 Printing and Stationery 4,000 Net Profit (Balancing Figure) Umesh 65,796 Mahesh 43,864 1,09,660 1,90,000 1,90,000 Balance Sheet as on March 31, 2013 Liabilities Amount (Rs) Amount (Rs) Assets Amount (Rs) Amount (Rs) Capital: Fixed Assets: Mahesh 1,62,000 Building 1,50,000 Umesh 1,08,000 2,70,000 (-) 7% Depreciation (10,500) 1,39,500 Current A/c: Motor Van 88,000 Umesh 94,596 (-) 8% Depreciation (7,040) 80,960 Mahesh 66,964 1,61,560 Investment 56,000 Current Liabilities: Machinery 72,000 Creditors 99,000 Current Assets: Bank Overdraft 56,400 Closing Stock 76,000 Debtors 96,000 (-) Further Bad Debts (2,500) 93,500 Loose Tools 17,000 Cash at Bank 52,000 5,86,960 5,86,960 Working Notes: Dr. Partners’ Current Accounts Cr. Particulars Umesh Mahesh Particulars Umesh Mahesh Drawings 2,000 1,500 Balance b/d 16,200 10,800 Balance c/d 94,596 66,964 Salary to Umesh 6,500 - Commission to Mahesh - 8,400 Interest on Capital A/c 8,100 5,400 Profit and Loss A/c 65,796 43,864 96,596 68,464 96,596 68,464

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. - Book Keeping and Accountancy

Question

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.

Ledger

Solution

Dr.	Trading Account for the year ended March 31,2013				Cr.
Particulars	Amount (Rs)	Amount (Rs)	Particulars	Amount (Rs)	Amount (Rs)
Opening Stock		83,000	Sales		4,20,000
Purchases	1,97,000		Closing Stock		76,000
(-) Drawings by Mahesh	(2,000)
(-) Drawings by Umesh	(1,500)	1,93,500
Carriage		7,000
Wages		7,500
Motive Power		15,000
Gross Profit (Balancing Figure)		1,90,000
		4,96,000			4,96,000

Dr.	Profit and Loss Account for the year ended March 31, 2013				Cr.
Particulars	Amount (Rs)	Amount (Rs)	Particulars	Amount (Rs)	Amount (Rs)
Interest on Capital:			Gross Profit		1,90,000
Mahesh	8,100
Umesh	5,400	13,500
Depreciation on:
Motor Van	7,040
Building	10,500	17,540
Bad Debts	6,400
(+) Further Bad Debts	2,500	8,900
Salary to Mahesh		6,500
Commission to Umesh		8,400
Salary		13,000
Audit fees		8,500
Printing and Stationery		4,000
Net Profit (Balancing Figure)
Umesh	65,796
Mahesh	43,864	1,09,660
		1,90,000			1,90,000

Balance Sheet as on March 31, 2013
Liabilities	Amount (Rs)	Amount (Rs)	Assets	Amount (Rs)	Amount (Rs)
Capital:			Fixed Assets:
Mahesh	1,62,000		Building	1,50,000
Umesh	1,08,000	2,70,000	(-) 7% Depreciation	(10,500)	1,39,500
Current A/c:			Motor Van	88,000
Umesh	94,596		(-) 8% Depreciation	(7,040)	80,960
Mahesh	66,964	1,61,560	Investment		56,000
Current Liabilities:			Machinery		72,000
Creditors		99,000	Current Assets:
Bank Overdraft		56,400	Closing Stock		76,000
			Debtors	96,000
			(-) Further Bad Debts	(2,500)	93,500
			Loose Tools		17,000
			Cash at Bank		52,000
		5,86,960			5,86,960

Working Notes:

Dr.	Partners’ Current Accounts				Cr.
Particulars	Umesh	Mahesh	Particulars	Umesh	Mahesh
Drawings	2,000	1,500	Balance b/d	16,200	10,800
Balance c/d	94,596	66,964	Salary to Umesh	6,500	-
			Commission to Mahesh	-	8,400
			Interest on Capital A/c	8,100	5,400
			Profit and Loss A/c	65,796	43,864
	96,596	68,464		96,596	68,464

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Partnership Final Accounts

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Chapter 2: Partnership Final Accounts - Practical Problems [Page 70]

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

Chapter 2 Partnership Final Accounts
Practical Problems | Q 8 | Page 70

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Trial Balance as on 31st March, 2010
Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Opening stock	20,000	Capital A/c's
Purchases	30,000	Sanjay	40,000
Debtors	12,000	Sudhir	30,000
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Adjustments:

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5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

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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.

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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.

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Balance sheet as on 31st March, 2016
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Varsha	2,80,000	Sundry debtors	3,00,000
Sundry creditors	4,00,000	Stock	1,60,000
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Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
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Profit and Loss Adjustment Account, Partner’s Capital Account and new Balance Sheet of the firm.

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Balance Sheet as on 31st March, 2013.
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts	11,000	Building	10,000
Anita	15,000	Machinery	10,700
Sunita	8,000	Furniture	10,000
Kavita	10,000	Debtors	5,000
Creditors	10,900	Stock	6,600
Reserve fund	4,000	Cash	6,600

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Goodwill of the firm is to be valued at ₹4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.
Assets to be revalued as under:
Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200.
R.D.D. to be maintained at 10% on debtors.
₹100 to be written off from creditors.
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Partner’s capital account, and
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