Question

Jaya and Maya are partners in a firm sharing profits and losses in the ratio of 2 : 3 respectively. With the help of the trial balance and adjustments given below, you are required to prepare their Trading, Profit and Loss Account for the year ended 31st March, 2013 and the Balance Sheet as on that date :

Trial Balance as on 31st March, 2013

Debit Balances	Amount	Credit Balances	Amount
Purchases	1,09,000	Sundry creditors	45,600
Insurance	3,700	Sales	1,94,000
Rent, rates and taxes	14,600	R.D.D.	2,000
Office expenses	7,300	Commission	5,500
Land and buildings	3,00,000	Capital A/c’s:
Plant and machinery	60,000	Jaya	2,00,000
Furniture	15,000	Maya	2,50,000
Carriage inwards	3,700	Current A/c’s:
Sundry debtors	88,000	Jaya	3,400
Stock (as on 01.04.2012)	32,800	Maya	9,100
Wages and salaries	28,600
Cash in hand	4,700
Cash at bank	40,200
Drawings A/c’s:
Jaya	500
Maya	1,500
	7,09,600		7,09,600

Adjustments :
(1) Closing stock was valued at  Rs. 22,600.
(2) Purchases include purchase of furniture of Rs .10,000 made on 1st October, 2012.
(3) Depreciate land and buildings at 10% p.a.; plant and machinery at 10% p.a. and furniture at 20% p.a.
(4) Create R.D.D. at 5% on sundry debtors.

Answer 1

Trading and Profit and Loss  and Appropriation A/c
For the year ending 31.03.2013

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		32,800	By Sales		194,000
To Purchases	109,000		By Closing Stock		22,600
Less:  Purchase of furniture wrongly included	10,000	99,000
To Carriage Inwards		3,700
To Wages and Salaries		28,600
To Gross Profit C/d		52,500
		216600			216600

Profit & Loss Account for the year ended 31 st March, 2011

Particulars	Amount	Amount	Particulars	Amount	Amount
To Insurance		3,700	By Gross Profit b/d		52,500
To Rent, Rates and Taxes		14,600	By Commission		5,500
To Office Expenses		7,300
To R.B.D.D. A/c
New Reserve	4,400
Less: Old Reserve	2,000	2,400
To Depreciation on Land and Building	30,000
Plant and Machinery	6,000		By Partners’ Current A/c [Net Loss]
Furniture	4,000	40,000	Jaya (2/5)	4000
			Maya (3/5)	6000	10000
		68,000			68,000

Partner's Current Accounts

Particulars	Jaya	Maya	Particulars	Jaya	Maya
To Drawings A/c	500	1500	By Balance b/d	3400	9100
To Profit & Loss A/c	4000	6000	By Balance b/d	1100	-
To Balance c/d	-	1600
	4500	9100		4500	9100

Balance Sheet as on 31st March, 2013

Liabilities	Amount	Amount	Assets	Amount	Amount
Partners’ Capital A/c			Land and Building	300,000
Capital A/c			Less: Depreciation	30,000	270,000
Jaya	200,000		Plant and Machinery	60,000
Maya	250,000	450,000	Less: Depreciation	6,000	54,000
Sundry Creditors		45600	Furniture	15,000
Maya’s Current A/c		1600	Add: New furniture Purchased	10,000
			Less: Depreciation	(- 4000)	21,000
			Sundry Debtors	88,000
			Less: R.D.D. @ 5%	(- 4400)	83,600
			Closing Stock		22,600
			Cash in Hand		4,700
			Cash at Bank		40,200
			Jaya’s Current A/c		1100
		497,200			497,200

Working Notes :
1. Depreciation of Land and Building :
    = 300,000 x `10/100` = 30,000

2. Depreciation of Plant and machinery :
    = 60,000 x `10/100` = 6,000

3. Depreciation of Furniture :

   Old Furniture = 15,000 x `20/100 xx 12/12` = 3,000

   New Furniture [ 1.10.2012 ] = 10,000 x `20/100 xx 6/12` = 1,000

    

   Total Depreciation = 30,000 + 6,000 + 3,000 + 1,000 = 40,000.