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was valued at Rs 76,000. 2) Interest on partner’s capital at 5% p.a. was allowed. 3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use. 4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales. 5)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

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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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.

Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:

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
Wages	5,000	Sales	70,000
Salaries	10,000	Sundry Creditors	21,000
Land and building	30,000	Bills Payable	20,000
Plant and machinery	25,000	Discount	5,000
Furniture	16,000	Outstanding Rent	1,500
Advertisement (for 2 years)	6,000
Bills Receivable	8,000
Insurance	2,000
Drawings:
Sanjay	2,000
Sudhir	3,000
Cash in hand	5,500
Rent	10,000
Power and Fuel	3,000
	1,87,500		1,87,500

Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.

3) Depreciate Land and Building at 5% and Machinery at 10%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

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

6) Provide interest on Partners Capital at 5% p.a.

From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.

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.

Dhiraj and Suraj are partners 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, 2013 and balance sheet as on that date :
Trial Balance as on 31.03.2013

Particulars	Amount Rs.	Particulars	Amount Rs.
Opening Stock	32,000	Sales	1,93,500
Purchases	64,000	Sundry Creditors	16,500
Plant and Machinery	30,000	Return Outward	2,500
Furniture	18,500	Capital Accounts
Carriage	1,500	Dhiraj	90,000
Wages	30,000	Suraj	50,000
Bills Receivable	5,000
Sundry Debtors	32,000
Conveyance	4,000
Salaries	10,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
	352,500		352,500

Adjustments :

(1) Closing stock : Cost price RS. 25,000 and market price Rs. 30,000.

(2) An amount of Rs. 3,500 spent for repairs to building is debited to building account.

(3) Depreciate plant and machinery and building at 5% p.a.

(4) Included in wages in advance given to workers Rs. 3,000.

(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.

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The account to which all adjustments are made when capital is fixed.

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