Kranti & Sumangala are Partners sharing Profits and Losses in their Capital ratio. From the Trial Balance given below and Adjustments, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as of that date. Trial Balance as on 31st March, 2019 Debit Balance Amount (₹) Credit Balance Amount (₹) Stock (1/4/2018) 32,500 Capital: Purchases 40,000 Kranti 1,20,000 Sundry Debtors 1,00,000 Sumangala 40,000 Bills Receivable 8,500 Sales 60,000 Wages 3,000 Sundry Creditors 30,000 Investment 32,000 Bills Payable 15,000 Postage 2,700 Commission 325 Insurance 7,500 Purchases Returns 1,000 Plant & Machinery 15,000 Salaries 4,850 Prepaid Rent 2,000 Bad-debts 500 Furniture 12,500 Cash in Hand 3,775 Sales Return 1,500 2,66,325 2,66,325 Adjustments: Closing Stock is valued at Cost Price ₹ 28,000 and Market Price ₹ 32,000. Insurance is paid up to 30th June 2019. Outstanding Expenses - Wages ₹ 800, Salaries ₹ 700. Book value of Plant and Machinery is reduced to ₹ 13,000. Depreciate Furniture by 5% p.a. Provide further Bad debts of ₹ 800. Goods of ₹ 3,000 distributed as a free sample.

Dr. In the Books of Kranti & SumangalaTrading and Profit and Loss A/cfor the year ended 31st March 2019 Cr. Particulars Amount (₹) Particulars Amount (₹) To Opening Stock 32,500 By Sales 60,000 58,500 To Purchases 40,000 36,000 Less: Sales Return 1,500 Less: Purchase Return 1,000 By Closing Stock 28,000 Less: Free Sample 3,000 To Wages 3,000 3,800 Add: Outstanding 800 To Gross Profit c/d 14,200 86,500 86,500 To Postage 2,700 By Gross Profit b/d 14,200 To Insurance 7,500 5,625 By Commission 325 Less: Prepaid Insurance 1,875 By Net Loss (Transferred to Capital A/c's) To Salaries 4,850 Kranti 4,706 6,275 Add: Outstanding Salary 700 5,550 Sumangala 1,569 To Depreciation on: Plant & Machinery 2,000 2,625 Furniture 625 To Bad-debts (Old) 500 1,300 Add: Bad debts (New) 800 To Advertisement (Goods distributed) 3,000 20,800 20,800 Balance Sheet as on 31st March, 2019 Liabilities Amount (₹) Assets Amount (₹) Capitals: Kranti 1,20,000 1,15,294 Plant & Machinery 15,000 13,000 Less: Net Loss 4,706 Less: Depreciation 2,000 Capital: Sumangala 40,000 38,431 Furniture 12500 11,875 Less: Net Loss 1,569 Less: Depreciation 5% 625 Outstanding Expenses: Sundry Debtors 1,00,000 99,200 Wages 800 1500 Less: Bad Debts 800 Salaries 700 Bills Receivable 8,500 Sundry Creditors 30,000 Investment 32,000 Bills Payable 15,000 Cash in Hand 3,775 Closing Stock 28,000 Prepaid Insurance 1,875 Prepaid Rent 2,000 2,00,225 2,00,225

Kranti and Sumangala are Partners sharing Profits and Losses in their Capital ratio. From the Trial Balance given below and Adjustments, you are required to prepare Trading and Profit and Loss

Question

Kranti & Sumangala are Partners sharing Profits and Losses in their Capital ratio. From the Trial Balance given below and Adjustments, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as of that date.

Trial Balance as on 31st March, 2019
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Stock (1/4/2018)	32,500	Capital:
Purchases	40,000	Kranti	1,20,000
Sundry Debtors	1,00,000	Sumangala	40,000
Bills Receivable	8,500	Sales	60,000
Wages	3,000	Sundry Creditors	30,000
Investment	32,000	Bills Payable	15,000
Postage	2,700	Commission	325
Insurance	7,500	Purchases Returns	1,000
Plant & Machinery	15,000
Salaries	4,850
Prepaid Rent	2,000
Bad-debts	500
Furniture	12,500
Cash in Hand	3,775
Sales Return	1,500
	2,66,325		2,66,325

Adjustments:

Closing Stock is valued at Cost Price ₹ 28,000 and Market Price ₹ 32,000.
Insurance is paid up to 30th June 2019.
Outstanding Expenses - Wages ₹ 800, Salaries ₹ 700.
Book value of Plant and Machinery is reduced to ₹ 13,000.
Depreciate Furniture by 5% p.a.
Provide further Bad debts of ₹ 800.
Goods of ₹ 3,000 distributed as a free sample.

Ledger

Solution

Dr.	In the Books of Kranti & Sumangala Trading and Profit and Loss A/c for the year ended 31st March 2019				Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
To Opening Stock		32,500	By Sales	60,000	58,500
To Purchases	40,000	36,000	Less: Sales Return	1,500	58,500
Less: Purchase Return	1,000		By Closing Stock		28,000
Less: Free Sample	3,000
To Wages	3,000	3,800
Add: Outstanding	800	3,800
To Gross Profit c/d		14,200
		86,500			86,500
To Postage		2,700	By Gross Profit b/d		14,200
To Insurance	7,500	5,625	By Commission		325
Less: Prepaid Insurance	1,875	5,625	By Net Loss (Transferred to Capital A/c's)
To Salaries	4,850		Kranti	4,706	6,275
Add: Outstanding Salary	700	5,550	Sumangala	1,569	6,275
To Depreciation on:
Plant & Machinery	2,000	2,625
Furniture	625	2,625
To Bad-debts (Old)	500	1,300
Add: Bad debts (New)	800	1,300
To Advertisement (Goods distributed)		3,000
		20,800			20,800

Balance Sheet as on 31st March, 2019
Liabilities		Amount (₹)	Assets		Amount (₹)
Capitals: Kranti	1,20,000	1,15,294	Plant & Machinery	15,000	13,000
Less: Net Loss	4,706	1,15,294	Less: Depreciation	2,000	13,000
Capital: Sumangala	40,000	38,431	Furniture	12500	11,875
Less: Net Loss	1,569	38,431	Less: Depreciation 5%	625	11,875
Outstanding Expenses:			Sundry Debtors	1,00,000	99,200
Wages	800	1500	Less: Bad Debts	800	99,200
Salaries	700	1500	Bills Receivable		8,500
Sundry Creditors		30,000	Investment		32,000
Bills Payable		15,000	Cash in Hand		3,775
			Closing Stock		28,000
			Prepaid Insurance		1,875
			Prepaid Rent		2,000
		2,00,225			2,00,225

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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
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3) Depreciate Land and Building at 5% and Machinery at 10%.

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Trial Balance as on 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Stock on 1^st April, 2011	52000	Provident fund	50000
Sundry Debtors	84000	Interest on P.F. Investment	2800
Bad debts	3000	Sundry Creditors	84000
Premises	78000	Rent received	9600
Salaries	28000	Reserve for Doubtful Debts	2000
Motor Vehicles	50000	Discount received	3600
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Wages	22000	Mona	50000
Rent (for 10 months)	16,000
Office Expenses	5,000
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	572000		572000

Adjustments:

1) Stock on 31st March, 2012 was valued at Rs 80,000.

2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.

3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.

4) Provide reserve for discount on debtors at 2% and on creditors at 3%.

5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.

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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 (₹)
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Plant and Machinery	1,20,000	Madhuri	3,00,000
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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
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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.

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
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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.

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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
		(-)R.D.D	18000	72000
		Profit and Loss A/c		15000
		Closing Stock		104500
		Cash in Hand		86000
	518500			518500

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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.

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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
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Wages	30,000	Suraj	50,000
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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
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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.

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