Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date. Trial Balance as on 31st March 2019 Particulars Debit ₹ Credit ₹ Purchases and Sales 65,000 1,85,500 Works Manager's Salary 2,300 Capital: - Sucheta 75,000 - Gayatri 40,000 Opening Stock 18,700 Debtors and Creditors 47,500 35,000 Wages and Salaries 4,000 Bills Receivable 22,000 Bills Payable 27,300 Discount 400 Motive Power 1,350 Custom duty 1,500 Interest 1,300 Unproductive Wages 3,000 Audit fees 2,500 Rent 1,800 Conveyance 2,000 Goodwill 25,000 Copyrights 20,000 Building 88,000 Partner (Sucheta's) Loan 6,150 Investments 40,000 Cash at Bank 26,000 3,70,650 3,70,650 Adjustments: Stock on 31st March 2019 was valued at ₹ 19,700. Goods costing ₹ 3,000 distributed as a free sample. Motive Power includes ₹ 500 paid for the deposit of the Power Meter. Depreciate Building @ 5%. Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors. Bills Receivable included dishonored of Bill of ₹ 4,000.

In the books of Sucheta and Gayatri Dr. Trading A/c for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Opening Stock 18,700 By Sales 1,85,500 To Purchase 65,000 By Goods Distributed as Free sample 3,000 To Works Manager’s Salary 2,300 By Closing Stock 19,700 To Wages and Salaries 4,000 To Motive Power 1,350 Less: Deposit for Power Meter 500 850 To Custom Duty 1,500 To Gross Profit c/d 1,15,850 2,08,200 2,08,200 Dr. Profit and Loss Account for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Unproductive Wages 3,000 By Gross Profit b/d 1,15,850 To Audit Fees 2,500 By Discount 400 To Rent 1,800 By Interest 1,300 To Conveyance 2,000 To O/s Interest on Sucheta's Loan 369 To Advertisement Expenses (Goods distributed as samples) 3,000 To Depreciation on Building 4,400 To Bad debts Nil Add: New Bad debts 2000 Add: New R.D.D 1,485 3,485 To Net Profit (Transferred to Capital A/cs) Sucheta 58,198 Gayatri 38,798 96,996 1,17,550 1,17,550 Dr. Capital Account for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ By Balance b/d 75,000 40,000 To balance c/d 1,33,198 78,798 By Net Profit 58,198 38,798 1,33,198 78,798 1,33,198 78,798 Balance Sheet as on 31st March 2019 Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹ Capital A/c: Deposit Power Meter 500 Sucheta 1,33,198 Building 88,000 Gayatri 78,798 2,11,996 Less: Depreciation 4,400 83,600 Sucheta’s Loan 6,150 Debtors 47,500 Add: O/s Interest on Sucheta's Loan 369 6,519 Creditors 35,000 Add: Dishonoured Bill 4,000 Bills Payable 27,300 51,500 Less: New Bad Debts 2,000 49,500 Less: New R.D.D. 1,485 48,015 Bills Receivable 22,000 Less: Dishonoured Bill 4,000 18,000 Goodwill 25,000 Copy Rights 20,000 Investments 40,000 Closing Stock 19,700 Cash at Bank 26,000 2,80,815 2,80,815 Working Notes: Add dishonored bill amount to debtors amount and then calculate B.D. and R.D.D. Subtract dishonoured bill amount from bills receivable amount. Rate of interest on the partner’s loan is not mentioned; therefore, interest on the loan is calculated at 6% p.a.&there4; Interest on Sucheta’s Loan = `6,150 xx 1 xx 6/100` = ₹ 369

Sucheta and Gayatri are Partners sharing Profit and Losses in the ratio 3:2. From the following Trial Balance you are required to prepare Trading and Profit and Loss Account for the year ended

Question

Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and Profit and Loss Account for the year ended 31^st March 2019 and Balance Sheet as of that date.

Trial Balance as on 31^s^t March 2019

Particulars	Debit ₹	Credit ₹
Purchases and Sales	65,000	1,85,500
Works Manager's Salary	2,300
Capital:
- Sucheta		75,000
- Gayatri		40,000
Opening Stock	18,700
Debtors and Creditors	47,500	35,000
Wages and Salaries	4,000
Bills Receivable	22,000
Bills Payable		27,300
Discount		400
Motive Power	1,350
Custom duty	1,500
Interest		1,300
Unproductive Wages	3,000
Audit fees	2,500
Rent	1,800
Conveyance	2,000
Goodwill	25,000
Copyrights	20,000
Building	88,000
Partner (Sucheta's) Loan		6,150
Investments	40,000
Cash at Bank	26,000
	3,70,650	3,70,650

Adjustments:

Stock on 31st March 2019 was valued at ₹ 19,700.
Goods costing ₹ 3,000 distributed as a free sample.
Motive Power includes ₹ 500 paid for the deposit of the Power Meter.
Depreciate Building @ 5%.
Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors.
Bills Receivable included dishonored of Bill of ₹ 4,000.

Ledger

Solution

In the books of Sucheta and Gayatri

Dr.	Trading A/c for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Opening Stock			18,700	By Sales		1,85,500
To Purchase			65,000	By Goods Distributed as Free sample		3,000
To Works Manager’s Salary			2,300	By Closing Stock		19,700
To Wages and Salaries			4,000
To Motive Power		1,350
Less: Deposit for Power Meter		500	850
To Custom Duty			1,500
To Gross Profit c/d			1,15,850
			2,08,200			2,08,200

Dr.	Profit and Loss Account for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Unproductive Wages			3,000	By Gross Profit b/d		1,15,850
To Audit Fees			2,500	By Discount		400
To Rent			1,800	By Interest		1,300
To Conveyance			2,000
To O/s Interest on Sucheta's Loan			369
To Advertisement Expenses (Goods distributed as samples)			3,000
To Depreciation on Building			4,400
To Bad debts		Nil
Add: New Bad debts		2000
Add: New R.D.D		1,485	3,485
To Net Profit (Transferred to Capital A/cs)
Sucheta		58,198
Gayatri		38,798	96,996
			1,17,550			1,17,550

Dr.	Capital Account for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
				By Balance b/d	75,000	40,000
To balance c/d		1,33,198	78,798	By Net Profit	58,198	38,798

		1,33,198	78,798		1,33,198	78,798

Balance Sheet as on 31^st March 2019

Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital A/c:			Deposit Power Meter		500
Sucheta	1,33,198		Building	88,000
Gayatri	78,798	2,11,996	Less: Depreciation	4,400	83,600
Sucheta’s Loan	6,150		Debtors	47,500
Add: O/s Interest on Sucheta's Loan	369	6,519
Creditors		35,000	Add: Dishonoured Bill	4,000
Bills Payable		27,300		51,500
			Less: New Bad Debts	2,000
				49,500
			Less: New R.D.D.	1,485	48,015
			Bills Receivable	22,000
			Less: Dishonoured Bill	4,000	18,000
			Goodwill		25,000
			Copy Rights		20,000
			Investments		40,000
			Closing Stock		19,700
			Cash at Bank		26,000
		2,80,815			2,80,815

Working Notes:

Add dishonored bill amount to debtors amount and then calculate B.D. and R.D.D.
Subtract dishonoured bill amount from bills receivable amount.
Rate of interest on the partner’s loan is not mentioned; therefore, interest on the loan is calculated at 6% p.a.
∴ Interest on Sucheta’s Loan = `6,150 xx 1 xx 6/100` = ₹ 369

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Partnership Final Accounts

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Q 5.Q 4.Q 6.

Chapter 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.2 (Practical Problems) [Page 58]

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Chapter 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.2 (Practical Problems) | Q 5. | Page 58

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From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date

Trial Balance as on 31st March , 2009

Particulars	Debit Amount Rs.	Credit Amount Rs.
Capital A/c's Ajay Vijay		60000 35000
Purchases and Sales	46,700	85,000
Sundry Debtors and Creditors	28000	25000
Bills Receivable and payable	5000	6000
Commission	4600	1800
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Insurance	1200
Plant and Machinery	40700
Furniture	18000
Cash in hand	2500
Carriage	3200
Bad debts	400
Prepaid Rent	7000
Salaries	10500

Adjustments:

1) The closing stock is valued at Rs 31,000.

2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800.

3) Depreciate Plant and Machinery by 10%.

4) Insurance at Rs 500 is paid in advance.

5) Provide for further bad debts of Rs 1,500.

6) Commission due but not received Rs 1,200.

Given below is the Trial Balance of M/s Roma and Mona partnership firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date

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
Motor Vehicles	50000	Discount received	3600
Purchases	176000	Sales	320000
Provident Fund Investment	50,000	Capital A/c-
Provident Fund contribution	5500	Roma	50000
Wages	22000	Mona	50000
Rent (for 10 months)	16,000
Office Expenses	5,000
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.

4) Provide reserve for discount on debtors at 2% and on creditors at 3%.

5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.

6) Depreciate Motor Vehicle at 5% 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.

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.

Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:

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

On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.

(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.

Prepare:
(1) Revaluation A/c
(2) Capital A/cs of partners and
(3) Balance sheet of the new firm

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.

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An asset which can be converted into cash easily.