Ashok and Tanaji are Partners sharing Profits and Losses in the ratio 2:3 respectively.

Ashok and Tanaji are Partners sharing Profits and Losses in the ratio 2:3 respectively. (20)
Trial Balance as on 31 st March, 2007 [March 2010]

Particulars
Amount
Rs.
Particulars
Amount
Rs.
Purchases
Patents Right
Building
Stock (1.4.2006)
Printing and Stationery
Sundry Debtors
Wages and Salaries
Audit fees
Sundry expenses
Furniture
10% Investment
(Purchased on 30.09.2006)
Cash
Provident Fund Contribution
Carriage Inwards
Travelling Expenses
98,000
4,000
1,00,000
15,000
1,750
35,000
11,000
700
3,500
8,000
10,000

4,000
800
1,300
2,700
Capitals : Ashok
Tanaji
Provident Fund
Creditors
Bank Loan
Sales
Reserve for Doubtful Debts
Purchase Returns
30,000
40,000
7,000
45,000
12,000
1,58,000
250
3,500
2,95,750
2,95,750

Closing stock is valued at the Cost of Rs.15,000 while its Market Price Rs.18,000.

On 31st March, 2007 the stock of stationery was Rs.500.

Provide reserve for bad and doubtful debts at 5% on debtors.

Depreciate building at 5% and patent rights at 10%.

Interest on capitals is to be provided at 5% p.a.

Goods worth Rs.10,000 were destroyed by fire. The Insurance company admitted a claim for Rs.8,000.


Solution:

In the books of M/s Ashok & Tanaji

Trading Account for the year ended 31.03.2007


Particulars
Amt.
Amt.
Particulars
Amt.
Amt.
To Opening Stock

15000
By Sales

158000
To Purchases
98000

By Goods destroyed  by fire

10000
(-) Return
-3500
94500



To Wages & Salaries

11000



To Carriage Inward

1300



To Gross Profit C/d

61200
By Closing Stock

15000


183000


183000


Profit and Loss Account for the year ended 31.03.2007

Particulars
Amt.
Amt.
Particulars
Amt.
Amt.
To Printing & Stationery
1750

By Gross Profit b/d

61200
(-) Stock
500
1250
By Interest on Investments

500
To Audit Fees

700



To Sundry Expenses

3500



To Provident Fund Contribution

800



To Travelling Expenses

2700



To Bad debts
-




(+) F.B.D.
-




(+) N.R.D.D.
1750




(-) O.R.D.D.
-250
1500



To Depreciation





On Building
5000




On Patent Rights
400
5400



To Interest on Capital





Ashok
1500




Tanaji
2000
3500



To loss by fire.
[10000 – 8000]

2000



To Net Profit c/d





Ashok
16140




Tanaji
24210
40350





61700


61700

Partners Current  Account

Particulars
Ashok
Tanaji
Particulars
Ashok
Tanaji



By Balance b/d
30000
40000



By Interest on Capital
1500
2000
To Balance C/d
47640
66210
By Net Profit b/d
16140
24210

47640
66210

47640
66210


Balance Sheet as on 31.12.1997


Liability
Amt.
Amt.
Assets
Amt.
Amt.
Capital A/c


Patent Rights
4000

Ashok
47640

(-) Depreciation
400
3600
Tanaji
66210
113850
Buildings
100000

Provident Fund

7000
(-) Depreciation
-5000
95000
Creditors

45000
Sundry debtors
35000

Bank Loan

12000
(-) N.R.D.D.
-1750
33250



Furniture

8000



10% Investments
10000




(+) Interest
500
10500



Cash

4000



Closing Stock

15000



Stock of Stationery

500



Insurance Claim

8000


177850


177850