HSC Commerce 12th Board ExamMaharashtra State Board
Share
Notifications

View all notifications
Books Shortlist
Your shortlist is empty

Miss Meena and Miss Reena Are in Partnership Sharing Profits and Losses in the Ratio of 3: 2. from the Following Trial Balance and Adjustments, You Are Required to Prepare Trading Account, 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 - HSC Commerce 12th Board Exam - Book Keeping and Accountancy

Login
Create free account


      Forgot password?

Question

Miss Meena and Miss Reena are in partnership sharing profits and losses in the ratio of 3: 2.

From the following trial balance and adjustments, you are required to prepare Trading Account, 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

Trial Balance as on 31.03.2013
Particulars Debit Amount (Rs) Particulars Credit Amount (Rs)
Building 4,00,000 Capital Accounts:  
Plant and Machinery 1,20,000     Meena         3,00,000  
Purchases 6,50,000     Reena          2,00,000 5,00,000
Carriage 7,000 Sales 8,14,000
Opening Stock 90,000 Sundry Creditors 1,80,000
Wages 35,000 Bank Overdraft 20,000
Sundry Debtors 1,50,000    
Salaries 28,000    
Postage and Telegram 4,000    
Insurance 5,000    
Bad Debts 3,000    
Rent 4,000    
Discount 3,000    
Drawings:      
   Meena    10,000      
   Reena       5,000 15,000    
  15,14,000   15,14,000
       

Adjustments:

1. Stock on hand on 31st March 2013 was valued at Rs. 1,10,000.

2. Depreciate plant and machinery at 10% p.a.

3. Create reserve for doubtful debts at 5% on sundry debtors.

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

5. Partners are allowed interest at 5% p.a. on their capitals.

Solution

Financial Statements of Meena and Reena

Trading Account

for the year ended March 31, 2013

Dr.   Cr.
Particulars Amount Particulars Amount
Opening Stock 90,000 Sales 8,14,000
Purchases 6,50,000 Closing Stock 1,10,000
Wages 35,000    
Carriage 7,000    
Gross Profit (Balancing Figure) 1,42,000    
       
  9,24000   9,24000

 

Profit and Loss Account for the year ended March 31, 2013
Dr.   Cr.
Particulars Amount (Rs) Particulars Amount (Rs)
Old Bad Debts                    3000   Gross Profit 1,42,000

   Add: New Provision for

           Doubtful Debt         7,500

 

10,500

   
Salaries                                    28,000      
     Less: Prepaid Salaries            2,500 25,500    
Depreciation on Plant and Machinery Interest on Capital:      
       Meena      15,000      
       Reena       10,000 25,000    
Postage & Telegrams 4,000    
Insurance 5,000    
Rent 4,000    
Discount 3,000    
Net Profit t/f to Partner’s Capital A/c (Balancing Figure)      
     Meena      31,800      
     Reena      21,200 53,000    
       
  1,42,000   1,42,000
 

Balance Sheet

as on March 31, 2013

Liabilities Amount (Rs) Assets Amount (Rs)
Capital   Fixed Assets  
   Meena                            3,00,000      Plant & Machinery    1,20,000  
   Add: Interest on Capital     15,000      Less: Depreciation      12,000 1,08,000
   Add: Net Profit                  31,800   Building 4,00,000
   Less: Drawings                  10,000 3,36,800 Current Assets  
   Reena                           2,00,000     Closing Stock 1,10,000
   Add: Interest on Capital    10,000     Debtors                      1,50,000  
   Add: Net Profit                  21,200  

   Less: Reserve for

       Doubtful Debt           7,500

 

1,42,500

  Less: Drawings                   5,000 2,26,200 Prepaid Salaries 2,500
Current Liabilities      
  Creditors 1,80,000    
  Bank Overdraft 20,000    
       
  7,63,000   7,63,000
 

Working Notes:

1. Calculation of Depreciation

Depreciation on Plant & Machinery = 1,20,000 × 10/100 = Rs 12,000

2. Calculation of Interest on Capital

Meena =3,00,000 × 5/100 = Rs 15000

Reena  = 200000 x 5/100 = Rs 10000

3. Calculation of Distribution of Profit

Meena = 53,000 × 3/5 = Rs 31,800

Reena = 53,000 × 2/5 = Rs 21,200

  Is there an error in this question or solution?

APPEARS IN

 2013-2014 (March) (with solutions)
Question 7 | 15.00 marks

Video TutorialsVIEW ALL [1]

Solution Miss Meena and Miss Reena Are in Partnership Sharing Profits and Losses in the Ratio of 3: 2. from the Following Trial Balance and Adjustments, You Are Required to Prepare Trading Account, 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 Concept: Reconstitution of Partnership Examples and Solutions.
S
View in app×