Mohini and Rohini are in partnership firm sharing profits and losses equally. 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, 2010 and Balance Sheet as on that date. Trial Balance as on 31st 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. 1st 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. 6) Maintain R.D.D at 5% on Sundry Debtors.

Financial Statement of....Trading Account for the year ended March 31,2010 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Opening Stock 25000 Sales 4,30,000 Purchases 2,20,000 232500 Closing Stock 80,000 Add : Additions 3000 Add : Import duty 11500 Less : Drawings by Mohini (2000) Factory Insurance 5000 Manufacturing Expenses 9000 Wages and Salaries 23000 25500 Add : Outstanding wages 2500 Gross Profit (Balancing Figure) 213000 510000 510000 Profit and Loss Account for the year ended March 31, 2010 Dr. Cr. Particulars Amount (Rs) Particulars Amount (Rs) Discount 4000 Gross Profit 213000 Advertisement 10000 1250 Discount 3500 Less : Prepaid `(10000 xx 21/24 )` (8750) Accrued Interest on GovernmentBonds `(60000 xx 10/100 xx 9/2)` 4500 Salaries and Wages 45000 Warehouse Rent 6000 Depreciation on Machinery 7,500 Reserve on Doubtful Debts 2250 Net Profit (Balancing Figure) Mohini 77500 155000 Rohini 77500 221000 221000 Balance Sheet as on March 31, 2010 Liabilities Amount (Rs) Assets Amount (Rs) Capital Fixed Assets Mohini 195500 363000 Building 140000 Rohini 167500 Plant and Machinery 75000 67500 Current Liabilities Less : 10% Depreciation (7500) Creditors 35000 38000 Current Assets Add : Additions 3000 Closing Stock 80000 Bills Payable 50000 Debtors 45000 42750 Outstanding Wages 2500 Less : Reserve for DoubtfulDebts `(Rs. 45000 xx 5/100)` 2250 Bills Receivable 45000 Cash in Hand 5000 10% Government Bond 60000 64500 Add : Accrued Interest 4500 Prepaid Advertisement 8750 453500 453500 Working Notes: Partners’ Capital Accounts Dr. Cr. Particulars Mohini Rohini Particulars Mohini Rohini Drawings 2000 Balance b/d 120000 90000 Balance c/d 195500 167500 Profit and Loss A/c -Profit 77500 77500 197500 167500 197500 167500 Note : As per the textbook the Total of Balance sheet is Rs 4,48,500 but as per our solution it should be Rs 4,53,500. *There is difference of Rs 10,000 in the Debit and Credit side of Trial Balance, therefore, Factory Building has been increased by Rs 10,000.

Mohini and Rohini Are in Partnership Firm Sharing Profits and Losses Equally. from the Following Trial Balance and Adjustments Given Below, You Are Required to Prepare

Question

Mohini and Rohini are in partnership firm sharing profits and losses equally. 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, 2010 and Balance Sheet as on that date.

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.

6) Maintain R.D.D at 5% on Sundry Debtors.

Ledger

Solution

Financial Statement of....
Trading Account
for the year ended March 31,2010

Dr. Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Opening Stock		25000	Sales	4,30,000
Purchases	2,20,000	232500	Closing Stock	80,000
Add : Additions	3000
Add : Import duty	11500
Less : Drawings by Mohini	(2000)
Factory Insurance		5000
Manufacturing Expenses		9000
Wages and Salaries	23000	25500
Add : Outstanding wages	2500	25500
Gross Profit (Balancing Figure)		213000
		510000		510000

Profit and Loss Account

for the year ended March 31, 2010

Dr. Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Discount		4000	Gross Profit	213000
Advertisement	10000	1250	Discount	3500
Less : Prepaid `(10000 xx 21/24 )`	(8750)	1250	Accrued Interest on Government Bonds `(60000 xx 10/100 xx 9/2)`	4500
Salaries and Wages		45000
Warehouse Rent		6000
Depreciation on Machinery		7,500
Reserve on Doubtful Debts		2250
Net Profit (Balancing Figure)
Mohini	77500	155000
Rohini	77500	155000
		221000		221000

Balance Sheet

as on March 31, 2010

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital			Fixed Assets
Mohini	195500	363000	Building		140000
Rohini	167500		Plant and Machinery	75000	67500
Current Liabilities			Less : 10% Depreciation	(7500)
Creditors	35000	38000	Current Assets
Add : Additions	3000		Closing Stock		80000
Bills Payable		50000	Debtors	45000	42750
Outstanding Wages		2500	Less : Reserve for Doubtful Debts `(Rs. 45000 xx 5/100)`	2250
			Bills Receivable		45000
			Cash in Hand		5000
			10% Government Bond	60000	64500
			Add : Accrued Interest	4500
			Prepaid Advertisement		8750
		453500			453500

Working Notes:

Partners’ Capital Accounts

Dr. Cr.

Particulars	Mohini	Rohini	Particulars	Mohini	Rohini
Drawings	2000		Balance b/d	120000	90000
Balance c/d	195500	167500	Profit and Loss A/c -Profit	77500	77500
	197500	167500		197500	167500

Note : As per the textbook the Total of Balance sheet is Rs 4,48,500 but as per our solution it should be Rs 4,53,500.

*There is difference of Rs 10,000 in the Debit and Credit side of Trial Balance, therefore, Factory Building has been increased by Rs 10,000.

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Partnership Final Accounts

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Chapter 2: Partnership Final Accounts - Practical Problems [Page 71]

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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 9 | Page 71

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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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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.

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Trial Balance as on 31^st March, 2013

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Postage and Telegram	1,750	Sundry Creditors	72700
Opening Stock	23,500	Bills Payable	40000
Plant and Machinery	70,000	10% Bank loan (Taken on 1st Oct 2012)	60000
Advertisement	5,000	Outstanding Audit fees	5900
Import duty	2,100	Capital A/c-
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
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	378600		378600

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	518500			518500

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