OMTEX CLASSES: From the following Trial Balance of M/s Sonia and Sufi, you are required to prepare Trading Profit and Loss Account for the year ended 31st December, 2004 and the Balance sheet as on that date.

Trial Balance as on 31.12.2004

Particulars	Debit (Rs.)	Credit (Rs.)
Sonia’s Capital Sufi’s capital Sonia’s Drawing Sufi’s Drawing Stock on 1 – 1 – 2004 Bills Receivable Purchases Sales Bills Payable Return In ward Return Outward Plant and Machinery Loose Tools Patents Sundry Debtors Sundry Creditors Cash at Bank Wages Salaries Rent and Taxes Insurance Printing and Stationery Power and Fuel	14, 450 10, 000 2, 00, 000 25, 000 2, 75, 000 5, 000 1, 00, 000 25, 000 25, 000 1, 25, 000 77, 550 19, 000 17, 500 7, 500 3, 000 2, 000 3, 500	1, 80, 000 1, 50, 000 4, 00, 000 60, 000 4, 500 1, 40, 000
	9, 34, 500	9, 34, 500

Adjustments:

1. Stock as on 31^st December, 2004 Rs. 1, 30,000 and its market value were Rs. 1, 40,000.

2. Write off Rs. 1000 for bad & Provide for Bad and Doubtful debts at 5% on Sundry Debtors.

3. Goods worth Rs. 1000 were distributed as free samples.

4. Prepaid Insurance Rs. 750.

5. Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a.

6. Outstanding Salaries Rs. 2,500

7. Uninsured goods worth Rs 1200 were lost by fire.

ANSWER

GROSS PROFIT 34200

Solution:

In the books of M/s Sonia and Sufi

Trading Account for the year ended 31.03.2014

Particulars	Amt.	Amt.	Particulars	Amt.	Amt.
To Opening Stock		200000	By Sales	400000
To Purchases	275000		(-) Return	(5000)	395000
(-) Return	(4500)	270500	By Goods distributed as free samples		1000
To Wages		19000	By Goods destroyed by fire		1200
To Power and Fuel		3500	By Closing Stock		130000
To Gross Profit C/d		34200
		527200			527200

Profit and Loss Account for the year ended 31.03.2014

Partners Capital Account

Balance Sheet as on 31.03.2014