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Varsha and Harsha are partners sharing profits and losses in their capital ratio.

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Varsha and Harsha are partners sharing profits and losses in their capital ratio. You are required to prepare Trading Account, Profit and Loss Account for the year ending 31st March, 2020 and Balance sheet as on that date:

 Trial Balance as on 31st March, 2020
Debit Balance  Amount ₹ Credit Balance  Amount ₹
sundry Debtors 56,000 Sales  2,40,000
Purchases 1,10,000 Sundry Creditors 99,600
Plant & machinery 1,60,000 Purchases Return 2,000
Furniture 1,05,800 Capital accounts  
Salaries 8,600 Varsha 1,80,000
Sales return 1,000 Harsh 60,000
Cash in hand 1,02,000 Current Accounts:  
Opening stock 35,600 Varsha 10,000
Rent, Rates & Taxes 9,000 Harsha 6,000
Advertisement 9,600    
  5,97,600   5,97,600

Adjustments:

  1. Stock on 31st March, 2020 was valued at ₹ 74,000.
  2. Depreciation on Plant and Machinery @ 5% p.a.
  3. Partners are entitled to get Interest on Capital at 5% p.a.
  4. Outstanding expenses: Salaries ₹ 700.
  5. Provide further Bad debts of ₹ 1,680 on Sundry debtors.
Ledger
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Solution

Dr. In the books of Varsha & Harsha 
Trading A/c
For the year ended 31st March, 2020
Cr.
Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹
To Opening stock   35,600 By Sales  2,40,000 2,39,000
To Purchases 1,10,000 1,08,000 Less: Returns 1,000
Less: Returns 2,000 By Closing stock    74,000
To Gross profit c/d   1,69,400      
    3,13,000     3,13,000

 

Dr. Profit & Loss A/c
For the year ended 31st March, 2020
Cr.
Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹
To Bad debts     By Gross Profit 1,69,400  
Add: New Bad debts 1,680      
Add: New R.D.D        
Less: Old R.D.D.   1,680      
To Salaries  8,600 9,300 By Gross profit b/d   1,69,400
Add: Outstanding 700      
To Rent, Rates & Taxes   9,000      
To Advertisement   9,600      
To Depreciation on
plant & machinery
  8,000      
To Interest on partners          
Capital          
Varsha 9,000 12,000      
Harsha 3,000      
To Further Bad Debts   1,680      
To Net profit transfered
to partner's current A/c
         
Varsha 89,865 1,19,820      
Harsha 29,955      
    1,69,400     1,69,400

 

In the books of Varsha & Harsha 
Balance Sheet
As on 31st March, 2020
Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹
Partner's Capital      Sundry Debtors 56,000 54,320
Varsha 1,80,000 2,40,000 Less: Further Bad Debts 1,680
Harsha 60,000 Plant & Machinery 1,60,000 1,52,000
Partner's Current     Less: Depreciation 5% 8,000
Varsha 1,08,865 1,47,820 Furniture   1,05,800
Harsha 38,955 Cash in hand   1,02,000
Sundry Creditors   99,600 Closing stock   74,000
Outstanding Salaries   700      
    4,88,120     4,88,120

Working Note:

Partner's Current A/c
Particulars Varsha Harsha Particulars Varsha Harsha
To Balance c/d 1,08,865 38,955 By Balance b/d 10,000 6,000
      By Interest on Capital 9,000 3,000
      By Profit & Loss A/c 89,865 29,955
  1,08,865 38,955   1,08,865 38,955

Interest capital
Varsha =`1,80,000xx 5/100xx12/12= 9,000`

Harsha = `60,000xx 5/100 xx 12/12 = 3,000` 

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Trial Balance as on 31.03.2013

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Amount
Rs.
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Amount
Rs.
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Debit Balance Amount (₹) Credit Balance Amount (₹)
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Building 48,500 Sales 1,75,000
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Trial Balance as on 31st March 2019

Debit Balance Amount ₹ Credit Balance Amount ₹
Purchases 35,500 Sales 58,200
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Trial Balance as on 31st March 2019

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Amount ₹

Credit Balance

Amount ₹

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Amount  ₹

Credit Balance

Amount ₹

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Trial Balance as on 31st March 2019

Debit Balance

Amount (₹)

Credit Balance

Amount (₹)

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28,000

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1,800

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Kshipra

90,000

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Manisha

30,000

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500

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500

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  1. Stock on 31st March 2019 was at ₹37,000.
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  3. Depreciation on fixed assets @ 5%.
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Trial Balance as on 31st March, 2019
Debit Balance Amount (₹) Credit Balance Amount (₹)
Purchases 48,000 Capital accounts:  
Salaries 7,500 Asha 80,000
Wages 2,800 Nisha 40,000
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Sales Return 8,000 Sales 1,48,000
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Adjustments:

  1. Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
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  3. Depreciate Motor Van by 5% and Plant and Machinery by 7%.
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  5. Outstanding Wages ₹ 800.

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Carriage Inward is carriage on purchases.


State whether the following statement is True or False with reason:

Profit and Loss Account is a Real Account.


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Find odd one.


Find odd one.


Registration of Partnership is ______ in India.


From the following Trial Balance and Adjustments of Rushabh and Yesha, you are required to prepare final accounts as on 31st March, 2023. Profit and Loss sharing ratio of partners is their capital ratio.

Trial Balance as on 31st March, 2023
Particulars (Name of Accounts) Debit (₹) Credit (₹)
Capital and Drawings :    
Rushabh 40,000 2,00,000
Yesha 28,000 1,00,000
Purchases and Sales 2,80,000 5,21,000
Debtors and Creditors 1,80,000 1,20,000
Sales Return and Purchase Return 4,000 6,000
Bills Receivable and Bills Payable 30,000 41,600
Cash Balance and Bank Overdraft 2,000 28,000
Bad Debts and Provision for Doubtful Debts 800 2,600
Wages and Outstanding Wages 70,000 4,000
Machinery 80,000  
Furniture 24,000  
Opening Stock of Goods 92,200  
Prepaid Insurance 400  
Salaries 46,000  
Insurance Premium 4,000  
Rent -Taxes 24,000  
Advertisement Expenses 5,800  
Goodwill 1,44,000  
Leasehold Building 28,000  
8 % Loan (From 1111/22)   60,000
  10,83,200 10,83,200

Adjustments :

(1) Closing stock is of ₹ 2,20,000. Its market value is 20 % more than its value.

(2) Calculate interest on capital @ 6 % p.a.

(3) Interest on drawings to be charged from partners: Rushabh ₹ 1,800, Yesha ₹ 1,200

(4) Provision for doubtful debts is to be kept at 5 %.

(5) Outstanding expenses at the end of the year: Rent ₹  600, Salary ₹ 1,900.

(6) Provide depreciation at 10 % on machinery and at 5 % on furniture.

(7) Write off ₹ 8,000 from Leasehold Building.


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Find the odd one:


Provident fund amount is a ______ for the firm.


From the following Trial Balance of Hira and Manek, prepare Trading and Profit and Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2023
Debit Balances Amount (₹) Credit Balances Amount (₹)
Stock (1 /4/2022) 50,000 Bank Overdraft 10,000
Debtors 1,61,000 Bills Payable 25,000
Bills Receivable 20,000 Creditors 1,36,000
Purchases 4,17,000 Sales 6,50,000
Sales Returns 2,000 Outstanding Rent 4,000
Carriage Inward 6,000  Unpaid Wages 3,000
Carriage Outward 9,000 Capital A/cs:  
Motor Vehicle 1,10,000 Hira 1,50,000
General Expenses 3,600 Manek 1,50,000
Export Duty 1,800 Purchase Returns 2,000
Advertisement (For 3 years from 1/10/2022) 9,600    
Printing and Stationery 2,400    
Drawings:      
Hira 7,000    
Manek 4,000    
Leasehold Premises 2,20,000    
Cash at Bank 90,000    
Furniture 16,600    
  11,30,000   11,30,000

Adjustments:

(1) Closing stock is valued at ₹ 64,000.

(2) Provide provision for doubtful debts ₹ 4,000.

(3) Create reserve for discount on debtors @ 3%

(4) Value of leasehold premises on 31st March, 2023 ₹ 2,00,000.

(5) Outstanding expenses: Printing and Stationery ₹ 1,000.


Find an odd one.


Mama and Kaka are partners in partnership firm sharing profits and losses equally. You are required to prepare Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date:

Trial Balance as on 31st March, 2019
Debit Balances Amount (₹) Cebit Balances Amount (₹)
Insurance 30,000 Capital Accounts:  
Land and Building ((Addition of ₹ 40,000 wef. 1st July, 2018)) 1,00,000 Mama 1,00,000
Salaries 10,000 Kaka 1,00,000
Export duty 5,000 10% Bank Loan (taken on1st Oct. 2018) 60,000
Interest 2,000 Interest 3,000
Furniture 80,000 Bills payable 16,000
Debtors 52,000   -
  2,79,000   2,79,000

Adjustment:

  1. Gross profit amounted to ₹ 69,000.
  2. Prepaid insurance ₹ 7,500.
  3. Depreciate Land and Building at 10% p.a. and Furniture 5% p.a.
  4. Write ₹ 2,000 for bad debts and maintain R.D.D. at 5% on sundry debtors.
  5. Closing stock is valued at ₹ 69,000.

Find odd one.


Find odd one.


Find odd one.


Find odd one.


Find odd one.


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