From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below. Trial Balance as on 31st March, 2020 Debit Balance Debit (₹) Credit (₹) Stock (1/4/2018) 48,000 Capital - Riddhi 50,000 Siddhi 30,000 Purchases 22,500 Wages 800 Carriage Inward 1,000 Sundry Creditors 27,600 Bills Payable 20,000 Cash in hand 2,850 Insurance 1,200 Sundry Debtors 32,000 Bank Overdraft 18,000 Carriage outward 900 Land and Building 42,500 Furniture 38,700 Sales 47,000 Purchase Return 500 Sales Return 400 Rent 1,800 Bad-debts 300 R.D.D 350 Discount 700 1,000 Travelling Expenses 250 Advertisements 4,150 1,96,250 1,96,250 Adjustments: Closing stock ₹ 48,700. Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200. Depreciate Land and Building by 10% and Furniture by 5%. Insurance Paid in Advance ₹ 300. Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

Dr. In the Books of Riddhi and SiddhiTrading and Profit and Loss A/cfor the year ended 31st March 2020 Cr. Particulars Amount (₹) Particulars Amount (₹) To Opening Stock 48,000 By Sales 47,000 46,600 To Purchases 22,500 22,000 Less: Sales Return 400 Less: Purchase Return 500 By Closing Stock 48,700 To Wages 800 1,500 By Good destroyed by fire 3,000 Add: OutstandingWages 700 To Carriage Inward 1,000 To Gross Profit c/d 25,800 98,300 98,300 To Insurance 1,200 900 By Gross Profit b/d 25,800 Less: Prepaid 300 By Rent 1,800 To Depreciation on : By R.D.D (Old) 350 50 Land & Building 4,250 6,185 Less: Bad-debts (New) 300 Furniture 1,935 By Discount 1,000 To Travelling Expenses 250 450 Add: Outstanding 200 To Loss by fire 3,000 To Carriage Outward 900 To Discount 700 To Advertisement 4,150 To Net Profit Transferred to Capital A/c Riddhi 6,183 12,365 Siddhi 6,182 28,650 28,650 Balance Sheet as on 31st March, 2020 Liabilities Amount (₹) Assets Amount (₹) Capital A/c: 56,183 Land & Building 42,500 38,250 Riddhi 50,000 Less: Depreciation 10% 4,250 Add: Net Profit 6,183 Furniture 38,700 36,765 Capital A/c: 36,182 Less: Depreciation 5% 1,935 Siddhi 30,000 Prepaid Insurance 300 Add: Net Profit 6,182 Cash in hand 2,850 Sundry Creditors 27,600 Sundry Debtors 32,000 Outstanding Expenses: Closing Stock 48,700 Wages 700 900 Travelling 200 Bill Payable 20,000 Bank Overdraft 18,000 1,58,865 1,58,865

From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2020 - Book Keeping and Accountancy

Question

From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below.

Trial Balance as on 31st March, 2020
Debit Balance	Debit (₹)	Credit (₹)
Stock (1/4/2018)	48,000
Capital - Riddhi		50,000
Siddhi		30,000
Purchases	22,500
Wages	800
Carriage Inward	1,000
Sundry Creditors		27,600
Bills Payable		20,000
Cash in hand	2,850
Insurance	1,200
Sundry Debtors	32,000
Bank Overdraft		18,000
Carriage outward	900
Land and Building	42,500
Furniture	38,700
Sales		47,000
Purchase Return		500
Sales Return	400
Rent		1,800
Bad-debts	300
R.D.D		350
Discount	700	1,000
Travelling Expenses	250
Advertisements	4,150
	1,96,250	1,96,250

Adjustments:

Closing stock ₹ 48,700.
Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200.
Depreciate Land and Building by 10% and Furniture by 5%.
Insurance Paid in Advance ₹ 300.
Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

Ledger

Solution

Dr.	In the Books of Riddhi and Siddhi Trading and Profit and Loss A/c for the year ended 31st March 2020				Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
To Opening Stock		48,000	By Sales	47,000	46,600
To Purchases	22,500	22,000	Less: Sales Return	400	46,600
Less: Purchase Return	500	22,000	By Closing Stock		48,700
To Wages	800	1,500	By Good destroyed by fire		3,000
Add: Outstanding Wages	700	1,500
To Carriage Inward		1,000
To Gross Profit c/d		25,800
		98,300			98,300
To Insurance	1,200	900	By Gross Profit b/d		25,800
Less: Prepaid	300	900	By Rent		1,800
To Depreciation on :			By R.D.D (Old)	350	50
Land & Building	4,250	6,185	Less: Bad-debts (New)	300	50
Furniture	1,935	6,185	By Discount		1,000
To Travelling Expenses	250	450
Add: Outstanding	200	450
To Loss by fire		3,000
To Carriage Outward		900
To Discount		700
To Advertisement		4,150
To Net Profit Transferred to Capital A/c
Riddhi	6,183	12,365
Siddhi	6,182	12,365
		28,650			28,650

Balance Sheet as on 31st March, 2020
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital A/c:		56,183	Land & Building	42,500	38,250
Riddhi	50,000		Less: Depreciation 10%	4,250	38,250
Add: Net Profit	6,183		Furniture	38,700	36,765
Capital A/c:		36,182	Less: Depreciation 5%	1,935	36,765
Siddhi	30,000		Prepaid Insurance		300
Add: Net Profit	6,182		Cash in hand		2,850
Sundry Creditors		27,600	Sundry Debtors		32,000
Outstanding Expenses:			Closing Stock		48,700
Wages	700	900
Travelling	200	900
Bill Payable		20,000
Bank Overdraft		18,000
		1,58,865			1,58,865

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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
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	1,87,500		1,87,500

Adjustments:

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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%.

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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.

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Trial Balance as on 31st March, 2012
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Building	4,00,000	Capital A/cs -
Plant and Machinery	1,20,000	Madhuri	3,00,000
Purchases	6,50,000	Minakshi	2,00,000
Carriage	7,000	Sales	8,10,000
Opening stock	90,000	Sundry Creditors	1,00,000
Wages	35,000	Outstanding salaries	4,200
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Salaries	28,000
Postage and Telegram	4,000
Insurance	5,000
Bad debts	3,000
Rent	4,000
Discount	3,200
Drawing A/c-
Madhuri	10,000
Minakshi	5,000
	15,14,200		15,14,200

Adjustments:

Stock on hand on 31st March, 2010 was valued at Rs 1,10,000.
Depreciate Plant and Machinery at 10% p.a. and Building at 5% p.a.
Prepaid Insurance Rs 1,500.
Create R.D.D at 5% on Sundry Debtors.
Partners are allowed interest at 5% p.a. on their capitals.
Salaries include Rs 2,500 as advance to workers.

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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 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
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		Profit and Loss A/c		15000
		Closing Stock		104500
		Cash in Hand		86000
	518500			518500

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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.

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4) Loose tools were found undervalued by 5% and Building was found overvalued by 15% in the books.

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6) The market Value of Investment is 50% more than its book value.

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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
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(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.

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Balance Sheet as on 31st March, 2013.
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