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.

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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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 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Stock on 1^st April, 2011	52000	Provident fund	50000
Sundry Debtors	84000	Interest on P.F. Investment	2800
Bad debts	3000	Sundry Creditors	84000
Premises	78000	Rent received	9600
Salaries	28000	Reserve for Doubtful Debts	2000
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Discount allowed	2,500
	572000		572000

Adjustments:

1) Stock on 31st March, 2012 was valued at Rs 80,000.

2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.

3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.

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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
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Travelling Expenses	3200
Electricity charges	2300
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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.

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
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		Closing Stock		104500
		Cash in Hand		86000
	518500			518500

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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.

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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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land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
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Balance sheet as on 31st March 2016

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Capital A/cs:			Building		1,00,000
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