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.

Dr. Trading Account for the year ended 31st March, 2010 Cr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) Amount (₹) Opening Stock 20,000 Sales 70,000 Purchases 30,000 Closing Stock 35,000 Add: Further Purchases 4,000 34,000 Wages 5,000 Add: Outstanding wages 2,000 7,000 Powe and fuel 3,000 Gross Profit 41,000 105,000 105,000 Dr. Profit and Loss Account for the year ended 31st March, 2010 Cr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) Amount (₹) Interest on Capital: Gross Profit 41,000 Sanjay 2,000 Discount Received 5,000 Sudhir 1,500 3,500 Salaries 10,000 Add: Outstanding Salaries 1,000 11,000 Advertisement 6,000 Less: Prepaid Advertisement (3,000) 3,000 Insurance 2,000 Rent 10,000 Bad debts 2,000 Add: R.D.D. 500 2,500 Depreciation on: Land and Building 1,500 Plant and Machinery 2,500 4,000 Net Profit Sanjay 6,000 Sudhir 4,000 10,000 46,000 46,000 Balance Sheet as on 31st March, 2010 Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹) Capital of Sanjay: 40,000 Fixed Assets Less: Drawings (2,000) Land and building 30,000 Add: Interest on capital 2,000 (−) 5% Depreciation 1,500 28,500 Add: Net Profit 6,000 46,000 Plant and machinery 25,000 Capital of Sudhir: 30,000 (−) 10% Depreciation 2,500 22,500 Less: Drawings (3,000) Furniture 16,000 Add: Interest on capital 1,500 Current Assets Add: Net Profit 4,000 32,500 Prepaid Advertisement 3,000 Current Liabilities Bills Receivable 8,000 Creditors 21,000 Closing Stock 35,000 Add: New Creditors (purchase on credit) 4,000 25,000 Cash in Hand 5,500 Bills Payable 20,000 Debtors 12,000 Outstanding Expenses: Less: Bad Debts (2,000) Wages 2,000 10,000 Salaries 1,000 Less: R.D.D (500) 9,500 Rent 1,500 4,500 128,000 128,000

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: - Book Keeping and Accountancy

Question

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.

Ledger

Solution

Dr.	Trading Account for the year ended 31st March, 2010				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
Opening Stock		20,000	Sales		70,000
Purchases	30,000		Closing Stock		35,000
Add: Further Purchases	4,000	34,000
Wages	5,000
Add: Outstanding wages	2,000	7,000
Powe and fuel		3,000
Gross Profit		41,000
		105,000			105,000

Dr.	Profit and Loss Account for the year ended 31st March, 2010				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
Interest on Capital:			Gross Profit		41,000
Sanjay	2,000		Discount Received		5,000
Sudhir	1,500	3,500
Salaries	10,000
Add: Outstanding Salaries	1,000	11,000
Advertisement	6,000
Less: Prepaid Advertisement	(3,000)	3,000
Insurance		2,000
Rent		10,000
Bad debts	2,000
Add: R.D.D.	500	2,500
Depreciation on:
Land and Building	1,500
Plant and Machinery	2,500	4,000
Net Profit
Sanjay	6,000
Sudhir	4,000	10,000
		46,000			46,000

Balance Sheet as on 31st March, 2010
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital of Sanjay:	40,000		Fixed Assets
Less: Drawings	(2,000)		Land and building	30,000
Add: Interest on capital	2,000		(−) 5% Depreciation	1,500	28,500
Add: Net Profit	6,000	46,000	Plant and machinery	25,000
Capital of Sudhir:	30,000		(−) 10% Depreciation	2,500	22,500
Less: Drawings	(3,000)		Furniture		16,000
Add: Interest on capital	1,500		Current Assets
Add: Net Profit	4,000	32,500	Prepaid Advertisement		3,000
Current Liabilities			Bills Receivable		8,000
Creditors	21,000		Closing Stock		35,000
Add: New Creditors (purchase on credit)	4,000	25,000	Cash in Hand		5,500
Bills Payable		20,000	Debtors	12,000
Outstanding Expenses:			Less: Bad Debts	(2,000)
Wages	2,000			10,000
Salaries	1,000		Less: R.D.D	(500)	9,500
Rent	1,500	4,500

		128,000			128,000

shaalaa.com

Partnership Final Accounts

Is there an error in this question or solution?

Q 2 Q 1 Q 3

Chapter 2: Partnership Final Accounts - Practical Problems [Page 66]

APPEARS IN

Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board

Chapter 2 Partnership Final Accounts
Practical Problems | Q 2 | Page 66

Video TutorialsVIEW ALL [1]

view
Video Tutorials For All Subjects
Partnership Final Accounts

video tutorial01:23:03

RELATED QUESTIONS

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.

Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint Venture to purchase and sale goods and agreed to share profit and losses in the proportion of 4 : 1 respectively.

Rokadimal sent goods of Rs 4,00,000 to Gunjal for sale.

Rokadimal paid Rs 11,500 for carriage.

Rokadimal drew a bill of Rs 95,000 on Gunjal, which he accepts.

Rokadimal discounted this bill with the bank for Rs 92,000.

The amount of discount is to be treated as joint venture expenditure.

Gunjal paid Rs 13,500 got advertisement.

Gunjal sold all the goods for Rs 5,00,000.

Gunjal paid Rs 7,000 for selling expenses and he is entitled for a commission on sales at 5% Co-venturers settled their accounts.

Give Journal Entries in the books of Gunjal of Pune.

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.

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.

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

On 1^st April, 2011 they admitted Uddhav on the following terms:

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.

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.

Prepare, Profit and Loss Adjustment in A/c, Capital Accounts of partners and Balance Sheet of the new firm.

Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2 : 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date:

Trial Balance as on 31st March 2016
Particulars	Debit Amount (₹)	Credit Amount (₹)
Prepaid insurance	3,200
Insurance	8,000
R.D.D.		4,000
Discount	3,200
Postage and telephone	12,800
Debtors and creditors	2,64,000	2,72,000
Salaries	2,24,000
Wages	96,000
Opening stock	1,92,000
Carriage	4,000
Purchased and sales	7,72,800	12,06,400
Return inward/Outward	22,400	36,800
Bank Overdraft		4,83,200
Plant and Machinery	96,000
Land and Building	7,04,000
Partner's Capital accounts:
Ashok		2,08,000
Sangmesh		1,92,000
	24,02,400	24,02,400

Adjustment:

Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
Goods worth Rs. 16,000 were distributed as free samples.
Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
The salaries were outstanding at Rs. 8,000.
Depreciation: Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.

Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below:

Balance Sheet as on 31st March, 2013.
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts	11,000	Building	10,000
Anita	15,000	Machinery	10,700
Sunita	8,000	Furniture	10,000
Kavita	10,000	Debtors	5,000
Creditors	10,900	Stock	6,600
Reserve fund	4,000	Cash	6,600

On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms:

Goodwill of the firm is to be valued at ₹4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.
Assets to be revalued as under:
Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200.
R.D.D. to be maintained at 10% on debtors.
₹100 to be written off from creditors.
The amount payable to Mrs. Kavita is to be transferred to her loan account.

Prepare:

Profit and loss adjustment account.
Partner’s capital account, and
Balance Sheet of new firm as on 01.04.2013.

To find out Net Profit or Net Loss of the business __________ account is prepared.

State whether the following statement is True or False with reasons.

Prepaid expenses are treated as liabilities.

State whether the following statement is True or False with reasons.

Wages paid for the installation of Machinery is a Revenue expenditure.

State whether the following statement is True or False with reasons.

Income received in advance is a liability.

State whether the following statement is True or False with reasons.

Depreciation is not calculated on Current Assets.

State whether the following statement is True or False with reasons.

Bank loan is a current liability.

The withdrawal by partner for personal use from the firm is ________ to his account.

The expenses paid for trading purpose are known as _______ expenses.

Cash receipts which are recurring in nature are called as__________ Receipts.

Return outward are deducted from ______.

Assets which are held in the business for a long period are called ______.

When goods are distributed as free samples, it is treated as ___________of the business.