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.

Dr. Trading Account for the year ended March 31, 2012 Cr. Particulars Amount (₹) Particulars Amount (₹) To Opening Stock 90,000 By Sales 8,10,000 To Purchases 6,50,000 By Closing Stock 1,10,000 To Carriage 7,000 To Wages 35,000 To Gross Profit c/d (Balancing Figure) 1,38,000 9,20,000 9,20,000 Dr. Profit and Loss Accountfor the year ended March 31, 2012 Cr. Particulars Amount (₹) Amount (₹) Particulars Amount(₹) To Salaries 28,000 25,500 By Gross Profit b/d 1,38,000 Less: Prepaid 2,500 To Postage and Telegram 4,000 To Insurance 5,000 3,500 Less: Prepaid (1,500) To Bad-Debts 3,000 10,500 Add: Reserve for Doubtful Debts 7,500 To Rent 4,000 To Discount 3,200 To Interest on Loan Outstanding 4,000 To Depreciation on: 32,000 Plant and Machinery 12,000 Building 20,000 To Interest on Capital: 25,000 Madhuri 15,000 Minakshi 10,000 To Net Profit (Balancing Figure) 26,300 Madhuri 15,780 Minakshi 10,520 1,38,000 1,38,000 Balance Sheet as on March 31, 2012 Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹) Capital of Madhuri 3,00,000 3,20,780 Fixed Assets Less: Drawings (10,000) Building 4,00,000 3,80,000 Add: Interest on Capital 15,000 Less: 5% Depreciation (20,000) Add: Net Profit 15,780 Plant and machinery 1,20,000 1,08,000 Capital of Minakshi 2,00,000 2,15,520 Less: 10% Depreciation (12,000) Less: Drawings (5,000) Current Assets Add: Interest on Capital 10,000 Closing Stock 1,10,000 Add: Net profit 10,520 Debtors 1,50,000 1,42,500 8% Bank loan 1,00,000 1,04,000 Less: Reserve for Doubtful Debts (7,500) Add: Outstanding Interest on Loan 4,000 Prepaid Insurance 1,500 Current Liabilities Prepaid Salary 2,500 Creditors 1,00,000 Outstanding Salaries 4,200 7,44,500 7,44,500

Madhuri and Minakshi are in partnership sharing profits and losses in the ratio 3:2. From the following Trial Balance and adjustments given below,

Question

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.

Ledger

Solution

Dr.	Trading Account for the year ended March 31, 2012		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Opening Stock	90,000	By Sales	8,10,000
To Purchases	6,50,000	By Closing Stock	1,10,000
To Carriage	7,000
To Wages	35,000
To Gross Profit c/d (Balancing Figure)	1,38,000
	9,20,000		9,20,000

Dr.	Profit and Loss Account for the year ended March 31, 2012			Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)
To Salaries	28,000	25,500	By Gross Profit b/d	1,38,000
Less: Prepaid	2,500	25,500
To Postage and Telegram		4,000
To Insurance	5,000	3,500
Less: Prepaid	(1,500)	3,500
To Bad-Debts	3,000	10,500
Add: Reserve for Doubtful Debts	7,500	10,500
To Rent		4,000
To Discount		3,200
To Interest on Loan Outstanding		4,000
To Depreciation on:		32,000
Plant and Machinery	12,000
Building	20,000
To Interest on Capital:		25,000
Madhuri	15,000
Minakshi	10,000
To Net Profit (Balancing Figure)		26,300
Madhuri	15,780
Minakshi	10,520
		1,38,000		1,38,000

Balance Sheet as on March 31, 2012
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital of Madhuri	3,00,000	3,20,780	Fixed Assets
Less: Drawings	(10,000)		Building	4,00,000	3,80,000
Add: Interest on Capital	15,000		Less: 5% Depreciation	(20,000)	3,80,000
Add: Net Profit	15,780		Plant and machinery	1,20,000	1,08,000
Capital of Minakshi	2,00,000	2,15,520	Less: 10% Depreciation	(12,000)	1,08,000
Less: Drawings	(5,000)		Current Assets
Add: Interest on Capital	10,000		Closing Stock		1,10,000
Add: Net profit	10,520		Debtors	1,50,000	1,42,500
8% Bank loan	1,00,000	1,04,000	Less: Reserve for Doubtful Debts	(7,500)	1,42,500
Add: Outstanding Interest on Loan	4,000	1,04,000	Prepaid Insurance		1,500
Current Liabilities			Prepaid Salary		2,500
Creditors		1,00,000
Outstanding Salaries		4,200
		7,44,500			7,44,500

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Partnership Final Accounts

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Chapter 2: Partnership Final Accounts - Practical Problems [Page 70]

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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 7 | Page 70

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RELATED QUESTIONS

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.

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.

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
Salaries	10,000	Sundry Creditors	21,000
Land and building	30,000	Bills Payable	20,000
Plant and machinery	25,000	Discount	5,000
Furniture	16,000	Outstanding Rent	1,500
Advertisement (for 2 years)	6,000
Bills Receivable	8,000
Insurance	2,000
Drawings:
Sanjay	2,000
Sudhir	3,000
Cash in hand	5,500
Rent	10,000
Power and Fuel	3,000
	1,87,500		1,87,500

Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

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%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

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.

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.

Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2 : 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date:

Trial Balance as on 31st March 2016
Particulars	Debit Amount (₹)	Credit Amount (₹)
Prepaid insurance	3,200
Insurance	8,000
R.D.D.		4,000
Discount	3,200
Postage and telephone	12,800
Debtors and creditors	2,64,000	2,72,000
Salaries	2,24,000
Wages	96,000
Opening stock	1,92,000
Carriage	4,000
Purchased and sales	7,72,800	12,06,400
Return inward/Outward	22,400	36,800
Bank Overdraft		4,83,200
Plant and Machinery	96,000
Land and Building	7,04,000
Partner's Capital accounts:
Ashok		2,08,000
Sangmesh		1,92,000
	24,02,400	24,02,400

Adjustment:

Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
Goods worth Rs. 16,000 were distributed as free samples.
Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
The salaries were outstanding at Rs. 8,000.
Depreciation: Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.

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.

A ______ is an intangible asset.

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

Order in which fixed assets are recorded first in the Balance Sheet.