Given below is the Trial Balance of M/s Seeta and Geeta as on 31st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet on that date. Trial Balance as on 31st March, 2010 Debit Balance Amount (Rs) CreditBalance Amount (Rs) Current A/c- Capital A/c- Geeta 4000 Seeta 120000 Opening stock 88,000 Geeta 120000 Purchases 1,76,000 Current A/c- Seeta 5000 Wages 23,500 Sundry Creditors 103000 Salaries 15,000 Bank overdraft 60000 Office Expenses 8000 Sales 308000 Bank Charges 2600 Legal Charges 3000 Machinery 90000 Land and building 130000 Interest 3600 Export Duty 3800 Bad -Debts 4000 Sundry Debtors 82000 Travelling Expenses 3200 Electricity charges 2300 Furniture 37000 8% Debentures(Purchased on 1.10.2009) 40000 716000 716000 Adjustments: 1) Stock on hand on 31st March, 2010 was valued at Rs 80,000. 2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000. 3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400. 4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a. 5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors. 6) Legal charges paid in advance Rs 1,200. 7) Provide interest on capital at 8% p.a.

Trading Account for the year ended March 31,2010 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 88000 Sales 308000 Purchases 176000 Closing Stock 80000 Wages 23500 25900 Goods Destroyed by fire 16000 Add : Outstanding Wages 2400 Gross Profit (Balancing Figure) 114100 404000 404000 Profit and Loss Account for the year ended March 31, 2010 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Salaries 15000 18000 Gross Profit 114100 Add : Outstanding Salaries 3000 Accrued Interest`(40000 xx 8/100 xx 6/12)` 1600 Office Expenses 8000 Bank Charges 2600 Legal Charges 3000 1800 Less : Prepaid (1200) Interest 3600 Export Duty 3800 Bad-Debts 4000 8100 Add : Reserve for Bad and doubtful Debts 4100 Travelling Expenses 3200 Electricity Charges 2300 Goods destroyed by fire (not received from Insurance company) 3000 Depreciation on: Land and Building 6500 15500 Machinery 9000 Interest on Capital: Seeta 9600 Geeta 9600 Net Profit (Balancing Figure) Seeta’s Current A/c 13300 26600 Geeta'sCurrent A/c 13300 115700 115700 Balance Sheet as on March 31, 2010 Liabilities Amount (Rs) Assets Amount (Rs) Capital 240000 Fixed Assets Seeta 120000 Land and Building 130000 123500 Geeta 120000 Less : 5% Depreciation (6500) Current A/c: Machinery 90000 81000 Seeta 27900 46800 Less : 10% Depreciation (9000) Geeta 18900 Furniture 37000 Current Liabilities Current Assets Creditors 103000 Closing Stock 80000 Bank Overdraft 60000 Debtors 82000 77900 Outstanding Expenses: Less : Reserve for Bad andDoubtful Debts (4100) Salaries 3000 5400 Prepaid Legal Charges 1200 Wages 2400 Cash 13000 8% Debentures 40000 41600 Add : Accrued Interest 1600 455200 455200 Working Note : Partners' Current Accounts Particulars Seeta Geeta Particulars Seeta Geeta Balance b/d 4000 Balance b/d 5000 Balance c/d 27900 18900 Interest on Capital A/c 9600 9600 Profit and loss A/c - Profit 13300 13300 27900 22900 27900 22900

Given Below is the Trial Balance of M/S Seeta and Geeta as on 31st March, 2010. You Are Required to Prepare Trading and Profit and Loss Account for the Year Ended 31st March, 2010 - Book Keeping and Accountancy

Question

Given below is the Trial Balance of M/s Seeta and Geeta as on 31^st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31^st March, 2010 and Balance Sheet on that date.

Trial Balance as on 31^st March, 2010

Debit Balance	Amount (Rs)	Credit Balance	Amount (Rs)
Current A/c-		Capital A/c-
Geeta	4000	Seeta	120000
Opening stock	88,000	Geeta	120000
Purchases	1,76,000	Current A/c- Seeta	5000
Wages	23,500	Sundry Creditors	103000
Salaries	15,000	Bank overdraft	60000
Office Expenses	8000	Sales	308000
Bank Charges	2600
Legal Charges	3000
Machinery	90000
Land and building	130000
Interest	3600
Export Duty	3800
Bad -Debts	4000
Sundry Debtors	82000
Travelling Expenses	3200
Electricity charges	2300
Furniture	37000
8% Debentures (Purchased on 1.10.2009)	40000
	716000		716000

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 80,000.

2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000.

3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400.

4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.

5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.

6) Legal charges paid in advance Rs 1,200.

7) Provide interest on capital at 8% p.a.

Ledger

Solution

Trading Account

for the year ended March 31,2010

Dr. Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		88000	Sales	308000
Purchases		176000	Closing Stock	80000
Wages	23500	25900	Goods Destroyed by fire	16000
Add : Outstanding Wages	2400	25900
Gross Profit (Balancing Figure)		114100
		404000		404000

Profit and Loss Account
for the year ended March 31, 2010

Dr. Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Salaries	15000	18000	Gross Profit	114100
Add : Outstanding Salaries	3000	18000	Accrued Interest `(40000 xx 8/100 xx 6/12)`	1600
Office Expenses		8000
Bank Charges		2600
Legal Charges	3000	1800
Less : Prepaid	(1200)	1800
Interest		3600
Export Duty		3800
Bad-Debts	4000	8100
Add : Reserve for Bad and doubtful Debts	4100	8100
Travelling Expenses		3200
Electricity Charges		2300
Goods destroyed by fire (not received from Insurance company)		3000
Depreciation on:
Land and Building	6500	15500
Machinery	9000	15500
Interest on Capital:
Seeta	9600
Geeta	9600
Net Profit (Balancing Figure)
Seeta’s Current A/c	13300	26600
Geeta's Current A/c	13300	26600
		115700		115700

Balance Sheet

as on March 31, 2010

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital		240000	Fixed Assets
Seeta	120000		Land and Building	130000	123500
Geeta	120000		Less : 5% Depreciation	(6500)
Current A/c:			Machinery	90000	81000
Seeta	27900	46800	Less : 10% Depreciation	(9000)
Geeta	18900		Furniture		37000
Current Liabilities			Current Assets
Creditors		103000	Closing Stock		80000
Bank Overdraft		60000	Debtors	82000	77900
Outstanding Expenses:			Less : Reserve for Bad and Doubtful Debts	(4100)
Salaries	3000	5400	Prepaid Legal Charges		1200
Wages	2400		Cash		13000
			8% Debentures	40000	41600
			Add : Accrued Interest	1600
		455200			455200

Working Note :

Partners' Current Accounts

Particulars	Seeta	Geeta	Particulars	Seeta	Geeta
Balance b/d		4000	Balance b/d	5000
Balance c/d	27900	18900	Interest on Capital A/c	9600	9600
			Profit and loss A/c - Profit	13300	13300
	27900	22900		27900	22900

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Partnership Final Accounts

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Chapter 2: Partnership Final Accounts - Practical Problems [Page 69]

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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 6 | Page 69

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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.

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Debit balance of trading account.

Madhuri and Minakshi are in partnership sharing profits and losses in the ratio 3:2. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet on that date.

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
Sundry Debtors	1,50,000	8% Bank loan (Taken on 1.10.2011)	1,00,000
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.

Mohini and Rohini are in partnership firm sharing profits and losses equally. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

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.

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.

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

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.

To find out Net Profit or Net Loss of the business __________ account is prepared.

Write the word/phrase/term, which can substitute the following sentence.

The accounts that are prepared at the end of each accounting year.

Write the word/phrase/term, which can substitute the following sentence.

The account in which selling expenses of the business are recorded.