Rohan and Roshan are partners in ‘Shan Traders’ 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, 2011 and Balance Sheet as on that date Trial Balance as on 31st March, 2011 Particulars Amount (₹) Particulars Amount (₹) Opening stock 32,000 Sales 1,93,500 Purchases 64,000 Sundry Creditors 15,000 Plant and Machinery 30,000 Unpaid Wages 1,500 Furniture 18,500 Return outward 2,500 Carriage 1,500 Capital A/c: Wages and Salaries 35,000 Rohan 90,000 Bills Receivable 5,000 Roshan 50,000 Sundry Debtors 32,000 Conveyance 4,000 Rent, Rates and Taxes 2,000 Return Inward 3,500 Cash in hand 14,750 Land and Building 83,500 Bad debts 1,750 Patents 25,000 3,52,500 3,52,500 Adjustments: Closing stock: Cost price Rs 25,000 and market price Rs 30,000. An amount of Rs 3,500 spent for repairs to Building is debited to Building account. Depreciate plant and Machinery and Building at 5% p.a. Goods of Rs 750 taken by Roshan for this personal use. Included in wages advances given to workers Rs 3,000. Provide Rs 1,500 for bad and doubtful debts on Debtors.

Dr. Trading Account for the year ended 31, March 2011 Cr. Particulars Amount (Rs) Particulars Amount (Rs) To Opening Stock 32000 By Sales 193500 190000 To Purchases 64000 60750 Less: Return Inward (3500) Less: Drawings (750) By Closing Stock 25000 Less: Return Outward (2500) To Wages and Salaries 35000 32000 Less: Prepaid Wages (3000) To Carriage 1500 To Gross Profit (Balancing Figure) 88750 215000 215000 Dr. Profit and Loss Account for the year ended 31st March 2011 Cr. Particulars Amount (Rs) Particulars Amount (Rs) Depreciation on: By Gross Profit 88750 To Plant and Machinery 1500 5500 To Building 4000 To Repair of Building 3500 To Conveyance 4000 To Rent, Rates and Taxes 2000 To Bad-Debts 1750 3250 Add: Provision for Doubtful Debts 1500 To Net Profit (Balancing Figure) Rohan 47000 70500 Roshan 23500 88750 88750 Dr. Balance sheet as on 31st March 2011 Cr. Liabilities Amount (Rs) Assets Amount (Rs) Capital of Rohan 90000 137000 Fixed Assets: Add: Net Profit 47000 Land and building 83500 76000 Capital of Roshan 50000 72750 Less: Repairs (3500) Less: Drawings (750) Less: 5% Depreciation (4000) Add: Net Profit 23500 Plant and Machinery 30000 28500 Current Liabilities Less: 5% Depreciation (1500) Creditors 15000 Furniture 18500 Unpaid Wages 1500 Patent 25000 Current Assets Debtors 32000 30500 Less: Provision for Doubtful-Debts (1500) Bills Receivable 5000 Cash in Hand 14750 Closing Stock 25000 Advance paid to workers 3000 226250 226250

Rohan and Roshan Are Partners in ‘Shan Traders’ Sharing Profits and Losses in the Ratio of 2:1.

Question

Rohan and Roshan are partners in ‘Shan Traders’ 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, 2011 and Balance Sheet as on that date

Trial Balance as on 31st March, 2011
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening stock	32,000	Sales	1,93,500
Purchases	64,000	Sundry Creditors	15,000
Plant and Machinery	30,000	Unpaid Wages	1,500
Furniture	18,500	Return outward	2,500
Carriage	1,500	Capital A/c:
Wages and Salaries	35,000	Rohan	90,000
Bills Receivable	5,000	Roshan	50,000
Sundry Debtors	32,000
Conveyance	4,000
Rent, Rates and Taxes	2,000
Return Inward	3,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
	3,52,500		3,52,500

Adjustments:

Closing stock: Cost price Rs 25,000 and market price Rs 30,000.
An amount of Rs 3,500 spent for repairs to Building is debited to Building account.
Depreciate plant and Machinery and Building at 5% p.a.
Goods of Rs 750 taken by Roshan for this personal use.
Included in wages advances given to workers Rs 3,000.
Provide Rs 1,500 for bad and doubtful debts on Debtors.

Ledger

Solution

Dr.		Trading Account for the year ended 31, March 2011			Cr.
Particulars		Amount (Rs)	Particulars		Amount (Rs)
To Opening Stock		32000	By Sales	193500	190000
To Purchases	64000	60750	Less: Return Inward	(3500)	190000
Less: Drawings	(750)		By Closing Stock		25000
Less: Return Outward	(2500)
To Wages and Salaries	35000	32000
Less: Prepaid Wages	(3000)	32000
To Carriage		1500
To Gross Profit (Balancing Figure)		88750
		215000			215000

Dr.		Profit and Loss Account for the year ended 31st March 2011		Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Depreciation on:			By Gross Profit	88750
To Plant and Machinery	1500	5500
To Building	4000	5500
To Repair of Building		3500
To Conveyance		4000
To Rent, Rates and Taxes		2000
To Bad-Debts	1750	3250
Add: Provision for Doubtful Debts	1500	3250
To Net Profit (Balancing Figure)
Rohan	47000	70500
Roshan	23500	70500
		88750		88750

Dr.		Balance sheet as on 31st March 2011			Cr.
Liabilities		Amount (Rs)	Assets		Amount (Rs)
Capital of Rohan	90000	137000	Fixed Assets:
Add: Net Profit	47000	137000	Land and building	83500	76000
Capital of Roshan	50000	72750	Less: Repairs	(3500)
Less: Drawings	(750)		Less: 5% Depreciation	(4000)
Add: Net Profit	23500		Plant and Machinery	30000	28500
Current Liabilities			Less: 5% Depreciation	(1500)	28500
Creditors		15000	Furniture		18500
Unpaid Wages		1500	Patent		25000
			Current Assets
			Debtors	32000	30500
			Less: Provision for Doubtful-Debts	(1500)	30500
			Bills Receivable		5000
			Cash in Hand		14750
			Closing Stock		25000
			Advance paid to workers		3000
		226250			226250

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Partnership Final Accounts

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Chapter 2: Partnership Final Accounts - Practical Problems [Page 67]

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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 3 | Page 67

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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.

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.

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Balance Sheet as on 31^st March, 2011

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Keshav	250000	Building		138000
Madhav	260000	Investment		45000
Creditors	8500	Loose Tools		38000
		Debtors	90000	72000
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		Closing Stock		104500
		Cash in Hand		86000
	518500			518500

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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.

5) All debtors are considered as good and out of creditors Rs 500 is no longer payable.

6) The market Value of Investment is 50% more than its book value.

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Balance sheet as on 31st March, 2016
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital A/c:		Land & building	2,00,000
Harsha	2,80,000	Furniture	76,000
Varsha	2,80,000	Sundry debtors	3,00,000
Sundry creditors	4,00,000	Stock	1,60,000
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Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
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The stock is to be taken at a value of Rs. 2,00,000.
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