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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Trial Balance as on 31^st March, 2013
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Investments	56,000	Capital A/c:
Carriage	7,000	Mahesh	1,62,000
Loose Tools	17,000	Umesh	1,08,000
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Salary	13,000	Mahesh	16,200
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Bad Debts	6,400
Printing and Stationery	4000
Debtors	96,000
Cash at Bank	52,000
Machinery	72,000
Motor Van	88,000
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Adjustments:

1) Stock on hand on 31st March, 2013 was valued at Rs 76,000.

2) Interest on partner’s capital at 5% p.a. was allowed.

3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use.

4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales.

5) Rs. 2,500 due from customer is not recoverable.

6) Depreciate Motor Van at 8% p.a. and Building at 7% p.a.

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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.

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Keshav and Madhav were partners sharing the profits and losses in the ratio of 2:3. Their Balance Sheet is as follows:

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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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.

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.

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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
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Creditors		80,000	Stock		84,000
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(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.
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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 :

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(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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(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.

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