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 - Book Keeping and Accountancy

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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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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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.

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.

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.

Mohini and Rohini are in partnership firm sharing profits and losses equally. 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, 2010 and Balance Sheet as on that date.

Trial Balance as on 31^st March, 2010

Particulars	Debit Amount Rs.	Credit Amount Rs
Partner’s Capital A/c-
Mohini		120000
Rohini		90000
Purchases and Sales	220000	430000
Sundry Debtors and Creditors	45000	35000
Bills Receivable and Bills Payable	45000	50000
Discount	4000	3500
Opening stock	25000
Wages and Salaries	23000
Manufacturing Expenses	9,000
Factory Insurances	5,000
Factory Building	1,40,000
Plant and Machinery	75,000
Advertisement (for 2years w.e.f. 1^st Jan. 2010)	10,000
Salaries and Wages	45,000
Warehouse rent	6,000
Import duty	11,500
Cash in hand	5,000
10% Government Bond (Purchased on 1st July 2009)	60000
	728500	728500

Adjustments:

1) Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.

2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.

3) Depreciate Machinery at 10% p.a.

4) Outstanding Wages were Rs 2,500.

5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.

6) Maintain R.D.D at 5% on Sundry Debtors.

From the following Trial Balance of M/s Sanjay and Vijay, 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 after taking into consideration the adjustments given below.

Trial Balance as on 31^st March, 2013

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Salaries and wages	12000	Sales	110000
Postage and Telegram	1,750	Sundry Creditors	72700
Opening Stock	23,500	Bills Payable	40000
Plant and Machinery	70,000	10% Bank loan (Taken on 1st Oct 2012)	60000
Advertisement	5,000	Outstanding Audit fees	5900
Import duty	2,100	Capital A/c-
Bad debts	1000	Sanjay	45000
Purchases	98500	Vijay	45000
Sundry Debtors	45800
Bills Receivable	16700
Carriage outward	1800
Wages and stationery (Note 2)	14000
Printing and stationery	4600
Cash in hand	1850
Leasehold Premises	80000
	378600		378600

Adjustments:
1) Closing stock was valued at Rs 30,000.

2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.

3) Goods of Rs 2,500 distributed as free samples.

4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.

5) Depreciate Plant and Machinery at 10% p.a.

6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.

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.

Following is the Balance sheet of Harsha and Versha’s firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.

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
		Cash at bank	2,24,000
	9,60,000		9,60,000

They decided to admit Asha on 1st April, 2016, into partnership on the following terms:

Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
A provision of 5% on debtors to be made for doubtful debts.
The stock is to be taken at a value of Rs. 2,00,000.
The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.

Prepare:

Profit and Loss Adjustment Account, Partner’s Capital Account and new Balance Sheet of the 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.

Dhiraj and Suraj are partners 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, 2013 and balance sheet as on that date :
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
Plant and Machinery	30,000	Return Outward	2,500
Furniture	18,500	Capital Accounts
Carriage	1,500	Dhiraj	90,000
Wages	30,000	Suraj	50,000
Bills Receivable	5,000
Sundry Debtors	32,000
Conveyance	4,000
Salaries	10,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
	352,500		352,500

Adjustments :

(1) Closing stock : Cost price RS. 25,000 and market price Rs. 30,000.

(2) An amount of Rs. 3,500 spent for repairs to building is debited to building account.

(3) Depreciate plant and machinery and building at 5% p.a.

(4) Included in wages in advance given to workers Rs. 3,000.

(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.

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

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

Order in which fixed assets are recorded first in the Balance Sheet.

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

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