From the following Trial Balance of M/s Bheem and Raju, you are required to prepare Trading Profit and Loss Account for the year ended 31st March, 2014 and the Balance sheet as on that date. Trial Balance as on 31.3.2014.


Particulars
Debit (Rs.)
Credit (Rs.)
Bheem’s Capital
Raju’s capital
Bheem’s Drawing
Raju’s Drawing
Opening Stock
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


15, 000
10, 000
1, 00, 000
25, 000
3, 75, 000


5, 000

1, 00, 000
25, 000
25, 000
1, 25, 000

77, 500
19, 000
17, 000
7, 500
3, 000
2, 000
3, 500
2, 00, 000
2, 00, 000





4, 00, 000
10, 000

4, 500




1, 20, 000







9, 34, 500
9, 34, 500

Adjustments:
1.      Stock as on 31st March, 2014  Rs. 30,000 and its market value  were Rs. 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,  Rent Rs. 2,500, Printing Rs. 3000. 
7.      Uninsured goods worth Rs  10000 were lost by fire.

Solution: In the books of Bheem and Raju

Trading A/c for the year ended 31.03.14

Particulars
Amount
Amount
Particulars
Amount
Amount
To Opening Stock

100000
By Sales
400000

To Purchases
375000

(-) Returns
(5000)
395000
(-) Returns
(4500)
370500
By Goods distributed as free samples

1000
To wages

19000
By Goods lost by fire

10000



By Closing stock

30000



By Gross loss c/d

57000


493000


493000


Profit and Loss A/c for the year ended 31 – 3 – 14

Particulars
Amount
Amount
Particulars
Amount
Amount
To Gross loss b/d

57000



To Salaries
17000




(+) Outstanding
2500
19500



To Rent & Taxes
7500




(+) Outstanding
2500
10000



To Insurance
3000




(-) Prepaid
750
2250



To Printing & Stationery
2000




(+) Outstanding
3000
5000



To Bad debts
-




(+) F.B.D.
1000




(+) N.R.D.D.
6200




(-) O.R.D.D.
-
7200



To Advertisement

1000



To Depreciation
on Plant and Machinery
10000




On Patent
3750
13750



To Goods lost by fire

10000
By Net loss C/d





Bheem
62850




Raju
62850
125700


125700


125700



Partners Capital A/c

Particulars
Bheem
Raju
Particulars
Bheem
Raju
To Drawings
15000
10000
By Balance b/d
200000
200000
To Net loss b/d
62850
62850



To Balance b/d
122150
127150




200000
200000

200000
200000


Balance Sheet as on 31.3.14


Liabilities
Amount
Amount
Assets
Amount
Amount
Capital A/c


Bills Receivable

25000
Bheem
122150

Plant & Machinery
100000

Raju
127150
249300
(-) Depreciation
(10000)
90000
Bills Payable

10000
Loose Tools

25000
Sundry creditors

120000
Patents
25000

Outstanding Expenses


(-) Depreciation
(3750)
21250
Salaries
2500

Sundry debtors
125000

Rent & Taxes
2500

(-) F.B.D.
(1000)

Printing & Stationery
3000
8000

124000




(-) N.R.D.D.
(6200)
117800



Cash at Bank

77500



Closing Stock

30000



Prepaid Insurance

750


387300


387300