Question

From the following Trial Balance of M/s Sanjay and Keshav, 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 account the following additional information:

                                                          Trial Balance as on 31st March, 2013

Debit Balances	Amount (Rs.)	Credit Balances	Amount (Rs.)
Opening stock	180000	Sales	525000
Bills receivable	80000	Rent	22000
Purchase	240000	Bills payable	78000
Bad debts	20000	Sundry creditors	100000
Salary and wages	24000	Capital account           Sanjay           Keshav	500000 300000
Discount	9000
Carriage inward	12000
Travelling expenses	13000
Cash in hand	38000
Furniture	280000
Insurance	12000
Land and building	400000
Postage and telegram	7000
Sundry debtors	210000
	1525000		1525000

 

Additional information:

1. Insurance paid in advance Rs. 3,000.
2. Depreciation provided on furniture at 10%.
3. Salary and wages outstanding Rs. 6,000.
4. Rent received in advance Rs. 5,000.
5. Closing stock as on 31.03.2013 Rs. 2,00,000.

Answer 1

                                                                              In the Books of Sanjay and Keshav

                                                               Trading A/c for the year ended on 31.03.2013

Particular	Amount	Amount	Particular	Amount	Amount
To Opening Stock		180000	By Sales		525000
To Purchase		240000
To Carriage inward		12000
			By Closing Stock		200000
To Gross Profit c/d		293000
		725000			725000

 

                                                                                   Profit and loss A/c for the year ended on 314.03.2013

Particulars	Amount	Amount	Particulars	Amount	Amount
To Bad debts (+) F.B.D. (+) N.R.D.D. (-) O.R.D.D.	20000	20000	By Gross Profit b/d		293000
To Salary and wages (+)Outstanding	24000 6000	30000	By Rent (-) Prepaid	22000 5000	17000
To Discount inward		9000
To Travelling Expenses		13000
To Insurance (-) Prepaid	12000 3000	9000
To Postage and Telegram		7000
To Depreciation on furniture		28000
To Net Profit c/d      Sanjay      Keshav	97000 97000	194000
		310000			310000

 

                                                                                         Partner's Capital A/c

Particulars	Sanjay	Keshav	Particulars	Sanjay	Keshav
			By Balance b/d	500000	300000
			By Net Profit b/d	97000	97000
To Balance c/d	597000	397000
	597000	397000		597000	397000

 

                                                                                                     Balance Sheet as on 31.03.2013

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c Sanjay Keshav	597000 397000	994000	Bills Receivable		80000
Bills payable		78000	Cash in hand		38000
Sundry Creditors		100000	Furniture (-) Depreciation	280000 28000	252000
Pre-received Rent		5000	Land and Building		400000
Outstanding Salary and wages		6000	Sundry Debtors		210000
			Prepaid insurance		3000
			Closing stock		200000
		1183000			1183000

 

Working Note

1. Calculation of Depreciation on Furniture = 280000*10/100 = 28000

2. Division of Net Profit:-

Sanjay = 194000*1/2 = 97000

Keshav = 194000*1/2 = 97000