Maharashtra State BoardHSC Arts 12th Board Exam
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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 - Book Keeping and Accountancy

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Ledger

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 1,80,000 Sales 5,25,000
Bills receivable 80,000 Rent 22,000
Purchase 2,40,000 Bills payable 78,000
Bad debts 20,000 Sundry creditors 1,00,000
Salary and wages 24,000 Capital account:  
Discount 9,000 Sanjay 5,00,000
Carriage inward 12,000 Keshav 3,00,000
Travelling expenses 13,000    
Cash in hand 38,000    
Furniture 2,80,000    
Insurance   12,000    
Land and building  4,00,000     
Postage and telegram  7,000     
Sundry debtors 2,10,000    
  15,25,000   15,25,000

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.
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Solution

Financial Statements of Sanjay and Keshav

Dr. Trading Account for the year ended March 31, 2013 Cr.
Particulars  Amount 
(Rs)
Particulars  Amount 
(Rs)
Opening Stock 1,80,000 Sales 5,25,000
Purchases 2,40,000 Closing Stock 2,00,000
Carriage Inward 12,000    
Gross Profit (Balancing Figure) 2,93,000    
  7,25,000   7,25,000

 

Dr. Profit and Loss Account for the year ended March 31, 2013 Cr.
Particulars Amount 
(Rs)
Amount 
(Rs)
Particulars Amount 
(Rs)
Amount 
(Rs)
Discount   9,000 Gross Profit   2,93,000
Travelling Expenses   13,000 Rent 22,000  
Salary and Wages 24,000   LessUnearned Rent 5,000 17,000
Add: Outstanding 6,000 30,000      
Depreciation on Furniture   28,000      
Insurance 12,000        
Less: Prepaid Insurance 3,000 9,000      
Postage & Telegram   7,000      
Bad Debts   20,000      
Net Profit (Balancing Figure)          
Sanjay 97,000        
Keshav 97,000 1,94,000      
    3,10,000     3,10,000

 

Dr. Balance Sheet  as on March 31, 2013 Cr.
Liabilities  Amount 
(Rs)
Amount 
(Rs)
Assets  Amount 
(Rs)
Amount 
(Rs)
Capital:     Fixed Assets   4,00,000
Sanjay 5,00,000   Land & Building    
Add: Net Profit  97,000 5,97,000 Furniture 2,80,000  
Keshav 3,00,000   Less: Depreciation 28,000 2,52,000
Add: Net Profit 97,000 3,97,000      
      Current Assets:    
Current Liabilities:     Closing Stock   2,00,000
Creditors   1,00,000 Debtors   2,10,000
Outstanding Salary and Wages   6,000 Cash   38,000
Unearned Rent   5,000 Bills Receivable   80,000
Bills Payable   78,000 Prepaid Insurance   3,000
    11,83,000     11,83,000 

Working Notes:
WN1: Calculation of Depreciation

Depreciation on Furniture = 2,80,000 × `10/100` = Rs. 28,000.

WN2: Calculation of Share in Profit

Sanjay's Share in Profit = 1,94,000 × `1/2` = Rs. 97,000.
Keshav's Share in Profit = 1,94,000 × `1/2` = Rs. 97,000.
Concept: Preparation of Final Accounts
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