Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date: Trial Balance as on 31st March, 2019 Debit Balances Amount (₹) Cebit Balances Amount (₹) Insurance 30,000 Capital Accounts: Land and Building ((Addition of ₹ 40,000 wef. 1st July, 2018)) 1,00,000 Mama 1,00,000 Salaries 10,000 Kaka 1,00,000 Export duty 5,000 10% Bank Loan (taken on1st Oct. 2018) 60,000 Interest 2,000 Interest 3,000 Furniture 80,000 Bills payable 16,000 Debtors 52,000 - 2,79,000 2,79,000 Adjustment: Gross profit amounted to ₹ 69,000. Prepaid insurance ₹ 7,500. Depreciate Land and Building at 10% p.a. and Furniture 5% p.a. Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors. Closing stock is valued at ₹ 69,000.

In the books of Mama and Kaka Dr. Profit and Loss Account for the year ended on 31st March 2019 Cr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) Amount (₹) To Insurance 30,000 22,500 By Gross Profit b/d 69,000 (-) prepaid 7,500 By Interest received 3,000 To Depreciation on 13,000 Land and Building 9,000 Furniture 4,000 To Bad debts (new) 2,000 4500 (+) R.D.D (New) 2,500 To salaries 10,000 To export duty 5,000 To interest on bank loan 3,000 To interest 2,000 To Partners' Capital A/c: (New Profit) Mama 6,000 12,000 Kaka 6,000 72,000 72,000 Balance Sheet as on 31st March, 2019 Assets Amount (₹) Amount (₹) Liabilities Amount (₹) Amount (₹) Capital Accounts: Land And Building 1,00,000 91,000 Mama 1,00,000 1,06,000 (-) Depreciation 10% 9,000 (+) Net Profit 6000 Furniture 80,000 76,000 Kaka 1,00,000 1,06,000 (-) Depreciation 5% 4,000 (+) Net Profit 6,000 Debtors 52,000 10% Bank loan 60,000 63,000 (-) Bad debts 2,000 (+) Interest due but not paid 3,000 50,000 Bills Payable 16,000 (-) R.D.D. 2,500 47,500 Prepaid Insurance 7,500 Closing Stock 69,000 2,91,000 2,91,000

Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare Profit and Loss Account for the year ended 31st March, 2019

Question

Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date:

Trial Balance as on 31st March, 2019
Debit Balances	Amount (₹)	Cebit Balances	Amount (₹)
Insurance	30,000	Capital Accounts:
Land and Building ((Addition of ₹ 40,000 wef. 1st July, 2018))	1,00,000	Mama	1,00,000
Salaries	10,000	Kaka	1,00,000
Export duty	5,000	10% Bank Loan (taken on1st Oct. 2018)	60,000
Interest	2,000	Interest	3,000
Furniture	80,000	Bills payable	16,000
Debtors	52,000		-
	2,79,000		2,79,000

Adjustment:

Gross profit amounted to ₹ 69,000.
Prepaid insurance ₹ 7,500.
Depreciate Land and Building at 10% p.a. and Furniture 5% p.a.
Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
Closing stock is valued at ₹ 69,000.

Ledger

Solution

	In the books of Mama and Kaka
Dr.	Profit and Loss Account for the year ended on 31st March 2019				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Insurance	30,000	22,500	By Gross Profit b/d		69,000
(-) prepaid	7,500	22,500	By Interest received		3,000
To Depreciation on		13,000
Land and Building	9,000
Furniture	4,000
To Bad debts (new)	2,000	4500
(+) R.D.D (New)	2,500	4500
To salaries		10,000
To export duty		5,000
To interest on bank loan		3,000
To interest		2,000
To Partners' Capital A/c: (New Profit)
Mama	6,000	12,000
Kaka	6,000	12,000
		72,000			72,000

Balance Sheet as on 31^st March, 2019
Assets	Amount (₹)	Amount (₹)	Liabilities	Amount (₹)	Amount (₹)
Capital Accounts:			Land And Building	1,00,000	91,000
Mama	1,00,000	1,06,000	(-) Depreciation 10%	9,000	91,000
(+) Net Profit	6000	1,06,000	Furniture	80,000	76,000
Kaka	1,00,000	1,06,000	(-) Depreciation 5%	4,000	76,000
(+) Net Profit	6,000	1,06,000	Debtors	52,000
10% Bank loan	60,000	63,000	(-) Bad debts	2,000
(+) Interest due but not paid	3,000	63,000		50,000
Bills Payable		16,000	(-) R.D.D.	2,500	47,500
			Prepaid Insurance		7,500
			Closing Stock		69,000
		2,91,000			2,91,000

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Trial Balance as on 31st March , 2009

Particulars	Debit Amount Rs.	Credit Amount Rs.
Capital A/c's Ajay Vijay		60000 35000
Purchases and Sales	46,700	85,000
Sundry Debtors and Creditors	28000	25000
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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
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
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Sudhir	3,000
Cash in hand	5,500
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Power and Fuel	3,000
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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.

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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.

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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
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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.
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Salaries include Rs 2,500 as advance to workers.

From the following Trial Balance of M/s Mahesh and Umesh, 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. Profit sharing ratio of Mahesh and Umesh was 3/5th and 2/5th respectively.

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
Building	1,50,000	Current A/c:
Salary	13,000	Mahesh	16,200
Audit fees	8,500	Umesh	10,800
Opening stock	83,000	Sundry Creditors	99,000
Wages	7,500	Sales	4,20,000
Purchases	1,97,000	Bank Overdraft	56,400
Motive Power	15,000
Bad Debts	6,400
Printing and Stationery	4000
Debtors	96,000
Cash at Bank	52,000
Machinery	72,000
Motor Van	88,000
	8,72,400		8,72,400

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 31.03.2013

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.

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