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 31st 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.

Trading Account for the year ended March 31,2013 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 23500 Sales 110000 Purchases 98500 Closing Stock 30000 Import Duty 2100 Goods distributed as Free Sample 2500 Wages and Salaries 14000 Gross Profit (Balancing Figure) 4400 142500 142500 Profit and Loss Account for the year ended March 31, 2013 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salaries and Wages 12000 Gross Profit 4400 Postage and Telegram 1750 1500 Net Loss (Balancing Figure) 39100 Less : Unused 250 Advertisement 5000 7500 Add : Free Sample 2500 Bad debts 1000 2500 Add : Further Bad-Debts 1500 Carriage outward 1800 Printing and stationery 4600 4200 Less : Unused 400 Depreciation on: Leasehold Premises 4000 11000 Plant and Machinery 7000 Outstanding Interest on Loan 3000 43500 43500 Balance Sheet as on March 31, 2013 Liabilities Amount (Rs) Assets Amount (Rs) Capital Fixed Assets Sanjay 45000 50900 Plant and Machinery 70000 63000 Vijay 45000 Less : Depreciation 7000 Less : Net loss (39100) Leasehold Premises 80000 76000 Current Liabilities Less: Depreciation 4000 Creditors 72700 Current Assets Bills Payable 40000 Closing Stock 30000 10% Bank Loan 60000 63000 Debtors 45800 44300 Add : Outstanding Interest 3000 Less : Further Bad-Debts 1500 Outstanding Audit fees 5900 Bills Receivable 16700 Unused stock of Printing and Stationery 400 Unused Stock of Postage and Telegram 250 Cash in Hand 1850 232500 232500 Note 1: As per the textbook, the Gross Profit, the Net Loss and the total of Balance Sheet are Rs 15,900, Rs 27,600 and Rs 2,44,000, respectively, however, as per the above solution these should be Rs 4,400, Rs 39,100 and Rs 2,32,500 respectively. Note 2: It should be Wages and Salaries instead of Wages and stationery

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

Question

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.

Ledger

Solution

Trading Account

for the year ended March 31,2013

Dr. Cr.

Particulars	Amount (Rs)	Particulars	Amount (Rs)
Opening Stock	23500	Sales	110000
Purchases	98500	Closing Stock	30000
Import Duty	2100	Goods distributed as Free Sample	2500
Wages and Salaries	14000
Gross Profit (Balancing Figure)	4400
	142500		142500

Profit and Loss Account

for the year ended March 31, 2013

Dr. Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Salaries and Wages		12000	Gross Profit	4400
Postage and Telegram	1750	1500	Net Loss (Balancing Figure)	39100
Less : Unused	250	1500
Advertisement	5000	7500
Add : Free Sample	2500	7500
Bad debts	1000	2500
Add : Further Bad-Debts	1500	2500
Carriage outward		1800
Printing and stationery	4600	4200
Less : Unused	400	4200
Depreciation on:
Leasehold Premises	4000	11000
Plant and Machinery	7000	11000
Outstanding Interest on Loan		3000
		43500		43500

Balance Sheet

as on March 31, 2013

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital			Fixed Assets
Sanjay	45000	50900	Plant and Machinery	70000	63000
Vijay	45000		Less : Depreciation	7000
Less : Net loss	(39100)		Leasehold Premises	80000	76000
Current Liabilities			Less: Depreciation	4000
Creditors		72700	Current Assets
Bills Payable		40000	Closing Stock		30000
10% Bank Loan	60000	63000	Debtors	45800	44300
Add : Outstanding Interest	3000		Less : Further Bad-Debts	1500
Outstanding Audit fees		5900	Bills Receivable		16700
			Unused stock of Printing and Stationery		400
			Unused Stock of Postage and Telegram		250
			Cash in Hand		1850
		232500			232500

Note 1: As per the textbook, the Gross Profit, the Net Loss and the total of Balance Sheet are Rs 15,900, Rs 27,600 and Rs 2,44,000, respectively, however, as per the above solution these should be Rs 4,400, Rs 39,100 and Rs 2,32,500 respectively.

Note 2: It should be Wages and Salaries instead of Wages and stationery

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Partnership Final Accounts

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Chapter 2: Partnership Final Accounts - Practical Problems [Page 72]

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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 10 | Page 72

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RELATED QUESTIONS

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.

Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint Venture to purchase and sale goods and agreed to share profit and losses in the proportion of 4 : 1 respectively.

Rokadimal sent goods of Rs 4,00,000 to Gunjal for sale.

Rokadimal paid Rs 11,500 for carriage.

Rokadimal drew a bill of Rs 95,000 on Gunjal, which he accepts.

Rokadimal discounted this bill with the bank for Rs 92,000.

The amount of discount is to be treated as joint venture expenditure.

Gunjal paid Rs 13,500 got advertisement.

Gunjal sold all the goods for Rs 5,00,000.

Gunjal paid Rs 7,000 for selling expenses and he is entitled for a commission on sales at 5% Co-venturers settled their accounts.

Give Journal Entries in the books of Gunjal of Pune.

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.

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.

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.

Following is the Balance sheet of Harsha and Versha’s firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.

Balance sheet as on 31st March, 2016
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital A/c:		Land & building	2,00,000
Harsha	2,80,000	Furniture	76,000
Varsha	2,80,000	Sundry debtors	3,00,000
Sundry creditors	4,00,000	Stock	1,60,000
		Cash at bank	2,24,000
	9,60,000		9,60,000

They decided to admit Asha on 1st April, 2016, into partnership on the following terms:

Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
A provision of 5% on debtors to be made for doubtful debts.
The stock is to be taken at a value of Rs. 2,00,000.
The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.

Prepare:

Profit and Loss Adjustment Account, Partner’s Capital Account and new Balance Sheet of the firm.

Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:

Balance sheet as on 31st March 2016

Liabilities	Amt(Rs)	Amt(Rs)	Assets	Amt(Rs)	Amt(Rs)
Capital A/cs:			Building		1,00,000
Darshan	96,000		Furniture		20,000
Amar	64,000	1,60,000	Equipments		10,000
General reserve		18,000	Debtors	63,000
Profit and Loss A/c		6,000	Less: R.D.D	3,000	60,000
Creditors		80,000	Stock		84,000
Pawans loan A/c		26,000	Cash		16,000
		2,90,000			2,90,000

On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.

(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.

Prepare:
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(2) Capital A/cs of partners and
(3) Balance sheet of the new firm

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