Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March 2019. You have to find out Gross Profit and Net Profit only. Trial Balance as on 31st March 2019 Debit Balance Amount ₹ Credit Balance Amount ₹ Stock (1/4/2018) 8,700 Sales 68,000 Purchases 18,300 Dividend 2,000 Wages 1,000 Purchases Return 500 Insurance 800 Sundry Creditors 13,000 Unproductive Wages 1,400 10% Bank Loan (w.e.f. 1/7/2018) 8,000 Warehouse Rent 600 Carriage Outward 1,200 Other Receipts 1,000 Sales Return 600 Export Duty 1,400 Customs Duty 800 Sundry Debtors 40,000 Investments 15,700 Factory Rent 1,600 Postage & Telegram 400 92,500 92,500 Adjustments: The Closing Stock is valued at ₹ 15,400. Outstanding Wages ₹ 500. Create provision for Bad debts ₹ 800 and maintain R.D.D. 3% on Sundry Debtors. Goods of ₹ 1,800 distributed as a free sample. Goods of ₹ 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.

Dr. In the books of Satish and Pramod Trading and Profit and Loss Account for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Opening Stock 8700 By Sales 68,000 To Purchases 18,300 (−) Sales Return 600 (−) Purchase Return 500 17,800 67,400 To Wages 1,000 (+) Unrecorded Sales 2,000 69,400 (+) O/s Wages 500 1,500 By Closing Stock 15,400 To Custom Duty 800 By Goods Distributed as Free Samples 1,800 To Factory Rent 1,600 To Gross Profit c/d 56,200 86,600 86,600 To Advertisement Expenses 1,800 By Gross Profit b/d 56,200 To Insurance 800 By Dividend 2,000 To Unproductive Wages 1,400 By Other Receipts 1,000 To Carriage Outward 1,200 To Warehouse Rent 600 To Export Duty 1,400 To Postage & Telegram 400 To O/s Interest on Bank Loan 600 To R.B.D.D A/c - Bad debts - (+) New Bad debts 800 (+) New Reserve 1,236 2,036 To Net Profit (Transferred to Capital A/cs) Satish 24,482 Pramod 24,482 48,964 59,200 59,200 Working Notes and Adjustment: (1) Balance Sheet as on 31st March, 2019 Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹ Capital A/c: Sundry Debtors 40,000 Satish 24,482 (+) Unrecorded Sales 2,000 Pramod 24,482 48,964 42,000 (−) New Bad debts 800 Sundry Creditor 13,000 41,200 10% Bank Loan (w.e.f. 1/7/2018) 8,000 (−) New R.D.D. (3% of 41,200) 1,236 39,964 (+) O/s Interest 600 8,600 Investments 15,700 O/s Wages 500 Closing Stock 15,400 71,064 71,064 (2) Closing stock: The adjustment with regard to the closing stock is done by (i) by crediting it to the trading and profit and loss account, and (ii) by showing it on the asset side of the balance sheet. (3) Outstanding Expenses: The amount of outstanding expenses is (i) added to the total of expenses under a particular head for the purpose of preparing trading and profit and loss account, and (ii) shown on the liabilities side of the balance sheet. (4) Goods distributed as free samples is an advertisement expense for business. (5) Interest on 10% bank loan is calculated for 9 months (From 1.7.2018 to 31.3.2019) I = `"PRN"/100 = 8,000 × 10/100 × 9/12` = ₹ 600. (6) Sundry Debtors 40,000 Add: Unrecorded Sales 2,000 Less: Provision for Bad Debts 800 41,200 Less: R.D.D. (New) (3 % of 41,200) 1,236 39,964

Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March 2019. You have to find out Gross Profit and Net Profit only. - Book Keeping and Accountancy

Question

Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31^st March 2019. You have to find out Gross Profit and Net Profit only.

Trial Balance as on 31^st March 2019

Debit Balance	Amount ₹	Credit Balance	Amount ₹
Stock (1/4/2018)	8,700	Sales	68,000
Purchases	18,300	Dividend	2,000
Wages	1,000	Purchases Return	500
Insurance	800	Sundry Creditors	13,000
Unproductive Wages	1,400	10% Bank Loan (w.e.f. 1/7/2018)	8,000
Warehouse Rent	600	10% Bank Loan (w.e.f. 1/7/2018)	8,000
Carriage Outward	1,200	Other Receipts	1,000
Sales Return	600
Export Duty	1,400
Customs Duty	800
Sundry Debtors	40,000
Investments	15,700
Factory Rent	1,600
Postage & Telegram	400
	92,500		92,500

Adjustments:

The Closing Stock is valued at ₹ 15,400.
Outstanding Wages ₹ 500.
Create provision for Bad debts ₹ 800 and maintain R.D.D. 3% on Sundry Debtors.
Goods of ₹ 1,800 distributed as a free sample.
Goods of ₹ 2,000 were sold and delivered on 31^st March 2019 but no entry is passed in the Books of Account.

Ledger

Solution

Dr.	In the books of Satish and Pramod Trading and Profit and Loss Account for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Opening Stock			8700	By Sales	68,000
To Purchases		18,300		(−) Sales Return	600
(−) Purchase Return		500	17,800		67,400
To Wages		1,000		(+) Unrecorded Sales	2,000	69,400
(+) O/s Wages		500	1,500	By Closing Stock		15,400
To Custom Duty			800	By Goods Distributed as Free Samples		1,800
To Factory Rent			1,600
To Gross Profit c/d			56,200
			86,600			86,600
To Advertisement Expenses			1,800	By Gross Profit b/d		56,200
To Insurance			800	By Dividend		2,000
To Unproductive Wages			1,400	By Other Receipts		1,000
To Carriage Outward			1,200
To Warehouse Rent			600
To Export Duty			1,400
To Postage & Telegram			400
To O/s Interest on Bank Loan			600
To R.B.D.D A/c		-
Bad debts		-
(+) New Bad debts		800
(+) New Reserve		1,236	2,036
To Net Profit (Transferred to Capital A/cs)
Satish		24,482
Pramod		24,482	48,964
			59,200			59,200

Working Notes and Adjustment:

(1)

Balance Sheet as on 31st March, 2019

Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital A/c:			Sundry Debtors	40,000
Satish	24,482		(+) Unrecorded Sales	2,000
Pramod	24,482	48,964		42,000
			(−) New Bad debts	800
Sundry Creditor		13,000		41,200
10% Bank Loan (w.e.f. 1/7/2018)	8,000		(−) New R.D.D. (3% of 41,200)	1,236	39,964
(+) O/s Interest	600	8,600	Investments		15,700
O/s Wages		500	Closing Stock		15,400

		71,064			71,064

(2) Closing stock: The adjustment with regard to the closing stock is done by (i) by crediting it to the trading and profit and loss account, and (ii) by showing it on the asset side of the balance sheet.

(3) Outstanding Expenses: The amount of outstanding expenses is (i) added to the total of expenses under a particular head for the purpose of preparing trading and profit and loss account, and (ii) shown on the liabilities side of the balance sheet.

(4) Goods distributed as free samples is an advertisement expense for business.

(5) Interest on 10% bank loan is calculated for 9 months (From 1.7.2018 to 31.3.2019)

I = `"PRN"/100 = 8,000 × 10/100 × 9/12` = ₹ 600.

(6)

Sundry Debtors	40,000
Add: Unrecorded Sales	2,000
Less: Provision for Bad Debts	800
	41,200
Less: R.D.D. (New) (3 % of 41,200)	1,236
	39,964

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Partnership Final Accounts

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Q 7.Q 6.Q 8.

Chapter 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.2 (Practical Problems) [Page 59]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board

Chapter 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.2 (Practical Problems) | Q 7. | Page 59

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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
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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
Building	1,50,000	Current A/c:
Salary	13,000	Mahesh	16,200
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Printing and Stationery	4000
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Balance sheet as on 31st March 2016

Liabilities	Amt(Rs)	Amt(Rs)	Assets	Amt(Rs)	Amt(Rs)
Capital A/cs:			Building		1,00,000
Darshan	96,000		Furniture		20,000
Amar	64,000	1,60,000	Equipments		10,000
General reserve		18,000	Debtors	63,000
Profit and Loss A/c		6,000	Less: R.D.D	3,000	60,000
Creditors		80,000	Stock		84,000
Pawans loan A/c		26,000	Cash		16,000
		2,90,000			2,90,000

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(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
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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
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Balance Sheet as on 31st March, 2013.
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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

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