Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended 31st march 2020 and balance sheet as on that date. Trial Balance as on 31st March, 2020 Debit Balance Amount (₹) Credit Balance Amount (₹) Stock (1/4/2019) 65,000 General Reserve 14,500 Bills Receivable 28,000 Capital: Wages and Salaries 9,000 Sun 1,60,000 Sundry Debtors 1,32,500 Moon 1,20,000 Bad-debts 1,000 Creditors 98,000 Purchases 1,48,000 R.D.D. 1,800 Motor car 68,000 Sales 2,85,500 Machinery 1,14,800 Outstanding Wages 700 Audit Fees 1,200 Purchases Returns 4,000 Sales Return 2,000 Discount 1,800 Discount 2,300 Building 75,000 Cash at Bank 12,000 10% Investment 20,000 Advertisement (Paid for 9 months) 4,500 Royalties 3,000 6,86,300 6,86,300 Adjustment and Additional Information: Closing Stock ₹ 40,000. Depreciate Building and Machinery @ 5% and 3% respectively. Bills Receivable included dishonoured bill of ₹ 3000. Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts. Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors. Goods of ₹ 6000 were sold but no entry was made in the books of accounts.

Dr. In the Books of Sun and MoonTrading and Profit and Loss A/cfor the year ended 31st March 2020 Cr. Particulars Amount (₹) Particulars Amount (₹) To Opening Stock 65,000 By Sales 2,85,500 2,89,500 To Purchases 1,48,000 1,43,000 Add: Unrecorded Sales 6,000 Less: Purchase Return 4,000 2,91500 Less: Goods taken for personal use 1,000 Less: Sales Return 2,000 To Royalties 3,000 By Closing Stock 40,000 To Wages and Salaries 9,000 To Gross Profit c/d 1,09,500 3,29,500 3,29,500 To Advertisement 4,500 6,000 By Gross Profit b/d 1,09,500 Add: o/s for 3 months 1,500 By Interest Accrued on Investment 2,000 To Audit fees 1,200 By Discount 1,800 To Depreciation on: Building 3,750 7,194 Machinery 3,444 To Bad debts (old) 1,000 7,985 Add: New Bad Debts 1,800 Add: New RDD 6,985 9,785 Less: RDD (old) 1,800 To Discount 2,300 To Net Profit (Transferred to Capital A/c's) Sun 44,311 88,621 Moon 44,310 1,13,300 1,13,300 Balance Sheet as on 31st March, 2020 Liabilities Amount (₹) Assets Amount (₹) Capitals: Sun 1,60,000 2,03,311 Building 75,000 71,250 Add: Net Profit 44,311 Less: Depreciation 5% 3,750 Less: (Goods taken over by sun of Personal use) 1,000 Machinery 1,14,800 1,11,356 Capital Moon 1,20,000 1,64,310 Less: Depreciation 3% 3,444 Add: Net Profit 44,310 Bills Receivable 28,000 25,000 General Reserve 14,500 Less: Bills Receivable Dishonoured 3,000 O/s Advertisement Exp. (3 months) 1,500 Motor Car 68,000 Creditors 98,000 Cash at Bank 12,000 Outstanding Wages 700 Closing Stock 40,000 Sundry Debtors 1,32,500 1,32,715 Add: Bills Receivable Dishonoured 3,000 1,35,500 Add: Unrecorded Sales 6,000 1,41,500 Less: Bad debts (New) 1,800 1,39,700 Less: RDD 5% (new) 6,985 10% Investment 20,000 22,000 Add: Interest Accrued 2,000 4,82,321 4,82,321 Working Notes: 1. Adjustment No. 3, 5, and 6 are co-related with sundry debtors. So, while calculating RDD 5% on Sundry Debtors, Amount of dishonour of Bills ₹ 3,000 and goods sold but not recorded ₹ 6,000 will be added into the Sundry Debtors, then new Bad Debts will be deducted and then less RDD (New) 5% 6,985 after 5% RDD should be calculated. 1st effected Sundry Debtors 1,32,500 Add: Bills dishonoured 3,000 Add: Unrecorded sales 6,000 1,41,500 Less: Bad debts (New) 1,800 1,39,700 Less: R.D.D (New) 5% 6,985 (Shown on Assets side of Balance Sheet) ₹ 1,32,715 2. 2nd effected Sundry Debtors 1,000 Add: Bad debts (New) 1,800 Add: New RDD 6,985 9,785 Less: RDD (Old) 1,800 (Shown on Debit side of Profit and Loss A/c) ₹ 7,985

Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended

Question

Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended 31st march 2020 and balance sheet as on that date.

Trial Balance as on 31st March, 2020
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Stock (1/4/2019)	65,000	General Reserve	14,500
Bills Receivable	28,000	Capital:
Wages and Salaries	9,000	Sun	1,60,000
Sundry Debtors	1,32,500	Moon	1,20,000
Bad-debts	1,000	Creditors	98,000
Purchases	1,48,000	R.D.D.	1,800
Motor car	68,000	Sales	2,85,500
Machinery	1,14,800	Outstanding Wages	700
Audit Fees	1,200	Purchases Returns	4,000
Sales Return	2,000	Discount	1,800
Discount	2,300
Building	75,000
Cash at Bank	12,000
10% Investment	20,000
Advertisement (Paid for 9 months)	4,500
Royalties	3,000
	6,86,300		6,86,300

Adjustment and Additional Information:

Closing Stock ₹ 40,000.
Depreciate Building and Machinery @ 5% and 3% respectively.
Bills Receivable included dishonoured bill of ₹ 3000.
Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts.
Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
Goods of ₹ 6000 were sold but no entry was made in the books of accounts.

Ledger

Solution

Dr.	In the Books of Sun and Moon Trading and Profit and Loss A/c for the year ended 31st March 2020				Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
To Opening Stock		65,000	By Sales	2,85,500	2,89,500
To Purchases	1,48,000	1,43,000	Add: Unrecorded Sales	6,000
Less: Purchase Return	4,000			2,91500
Less: Goods taken for personal use	1,000		Less: Sales Return	2,000
To Royalties		3,000	By Closing Stock		40,000
To Wages and Salaries		9,000
To Gross Profit c/d		1,09,500
		3,29,500			3,29,500
To Advertisement	4,500	6,000	By Gross Profit b/d		1,09,500
Add: o/s for 3 months	1,500	6,000	By Interest Accrued on Investment		2,000
To Audit fees		1,200	By Discount		1,800
To Depreciation on:
Building	3,750	7,194
Machinery	3,444	7,194
To Bad debts (old)	1,000	7,985
Add: New Bad Debts	1,800
Add: New RDD	6,985
	9,785
Less: RDD (old)	1,800
To Discount		2,300
To Net Profit (Transferred to Capital A/c's)
Sun	44,311	88,621
Moon	44,310	88,621
		1,13,300			1,13,300

Balance Sheet as on 31st March, 2020
Liabilities		Amount (₹)	Assets		Amount (₹)
Capitals: Sun	1,60,000	2,03,311	Building	75,000	71,250
Add: Net Profit	44,311		Less: Depreciation 5%	3,750	71,250
Less: (Goods taken over by sun of Personal use)	1,000		Machinery	1,14,800	1,11,356
Capital Moon	1,20,000	1,64,310	Less: Depreciation 3%	3,444	1,11,356
Add: Net Profit	44,310	1,64,310	Bills Receivable	28,000	25,000
General Reserve		14,500	Less: Bills Receivable Dishonoured	3,000	25,000
O/s Advertisement Exp. (3 months)		1,500	Motor Car		68,000
Creditors		98,000	Cash at Bank		12,000
Outstanding Wages		700	Closing Stock		40,000
			Sundry Debtors	1,32,500	1,32,715
			Add: Bills Receivable Dishonoured	3,000
				1,35,500
			Add: Unrecorded Sales	6,000
				1,41,500
			Less: Bad debts (New)	1,800
				1,39,700
			Less: RDD 5% (new)	6,985
			10% Investment	20,000	22,000
			Add: Interest Accrued	2,000	22,000
		4,82,321			4,82,321

Working Notes:

1. Adjustment No. 3, 5, and 6 are co-related with sundry debtors. So, while calculating RDD 5% on Sundry Debtors, Amount of dishonour of Bills ₹ 3,000 and goods sold but not recorded ₹ 6,000 will be added into the Sundry Debtors, then new Bad Debts will be deducted and then less RDD (New) 5% 6,985 after 5% RDD should be calculated.

1st effected Sundry Debtors	1,32,500
Add: Bills dishonoured	3,000
Add: Unrecorded sales	6,000
	1,41,500
Less: Bad debts (New)	1,800
	1,39,700
Less: R.D.D (New) 5%	6,985
(Shown on Assets side of Balance Sheet)	₹ 1,32,715

2nd effected Sundry Debtors	1,000
Add: Bad debts (New)	1,800
Add: New RDD	6,985
	9,785
Less: RDD (Old)	1,800
(Shown on Debit side of Profit and Loss A/c)	₹ 7,985

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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.

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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
Opening stock	18000
Wages	9900
Investment	13500
Postage and Telegrams	3600
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.

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.

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.

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.

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.

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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Write the word/phrase/term, which can substitute the following sentence.

The account to which all adjustments are made when capital is fixed.

Write the word/phrase/term, which can substitute the following sentence.

The account in which selling expenses of the business are recorded.