From the following Trial Balance of M/s Vishal and Vaibhav, you are required to prepare Trading and Profit and Loss Account,

From the following Trial Balance of M/s Vishal and Vaibhav, 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 31st March, 2013


Debit Balances
Amount
Credit Balances
Amount
Salary and Wages
17000
Sales
110000
Postage and Telegram
1750
Sundry Creditors
72700
Opening Stock
23500
Bills Payable
40000
Plant and Machinery
70000
10% Bank Loan
[Taken on 1st October, 2012]
60000
Import Duty
3100
Outstanding Audit Fees
5900
Purchases
98500
Capital Accounts:

Sundry Debtors
45800
Vishal
45000
Bills Receivable
16700
Vaibhav
45000
Carriage Outward
1800


Wages and Salary
14000


Printing and Stationery
4600


Cash in hand
1850


Lease hold premises
80000







378600

378600

Adjustments:

(1) Closing stock was valued at Rs. 30000.
(2) Postal stamps of Rs. 250 and stationery of Rs. 400 are unused.
(3) Lease hold property is to be run for 10 years w.e.f. 1st October, 2012.
(4) Depreciate Plant and Machinery at 10% p.a.
(5) Mr. Rajan, our customer, became insolvent and could not payhis debts of Rs. 1500.

Solution: In the books of Vishal and Vaibhav
Tradind A/c for the year ended 31.3.2013

Particulars
Amount
Amount
Particulars
Amount
Amount
To Opening Stock

23500
By Sales

110000
To Purchases

98500



To Import Duty

3100



To Wages and Salaries

14000
By Closing Stock

30000
To Gross Profit C/d

900





140000


140000

Profit and Loss A/c for the year ended 31.3.2013

Particulars
Amount
Amount
Particulars
Amount
Amount
To Salary and Wages
1750

By Gross Profit b/d

900
To Postage and Telegram
1750




Less: Unused Postal Stamps
250
1500



To Carriage Outward

1800



To Printing and Stationery
4600




Less: Unused Stationery
400
4200



To Depreciation on  Lease hold property

4000



To Depreciation on Plant and Machinery

7000



To Bad debts

1500
By Net Loss Transferred to


To Interest on Bank Loan

3000
Vishal’s Capital A/c
19550




Vaibhav’s Capital A/c
19550
39100


40000


40000


Partners’ Capital A/c


Particulars
Vishal
Vaibhav
Particulars
Vishal
Vaibhav
To Profit and Loss A/c
[Net Loss]
19550
19550
By Balance b/d
45000
45000
To balance c/d
25450
25450




45000
45000

45000
45000


M/s Vishal and Vaibhav
Balance Sheet as on 31.3.13

Liabilities
Amount
Amount
Assets
Amount
Amount
Capitals:


Cash in Hand

1850
Vishal
25450

Sundry Debtors
45800

Vaibhav
25450
50900
Less: F.B.D.
1500
44300
Sundry Creditors

72700
Bills Receivable

16700
Bills Payable

40000
Plant and Machinery
70000

10% Bank Loan
60000

Less: Depreciation
7000
63000
Add: Outstanding Interest on Bank Loan
3000
63000
Lease Hold Premises
80000

Outstanding Audit Fees

5900
Less: Written off
4000
76000



Closing Stock

30000



Unused Postal Stamps

250



Unused Stationery

400








232500


232500