Satish and Pradeep are partners in a partnership firm, sharing Profits and Losses equally.

Satish and Pradeep are partners in a partnership firm, sharing Profits and Losses equally.

Solution: In the books of M/s Satish and Pradeep
Tradind A/c for the year ended 31.3.2013

Particulars
Amount
Amount
Particulars
Amount
Amount
To Opening stock

25000
By Sales

430000
To Purchases

220000



To Wages and Salaries
23000




Add: Outstanding
2500
25500



To Manufacturing expenses

25500






By Closing Stock

80000
To Gross Profit C/d

214000





510000


510000

Profit and Loss A/c for the year ended 31.3.2013

Particulars
Amount
Amount
Particulars
Amount
Amount
To Discount

4000
By Gross Profit C/d

214000
To Advertisement
10000

By Discount

3500
Less: Prepaid
8750
1250
By Interst on Govt. Bond

4500
To Salaries and Wages

45000



To Warehouse Rent

6000



To Depreciation on Machinery

7500



To R.D.D.

2250



To Net Profit Transferred to Partners Capital A/c





Satish Capital A/c
78000




Pradeep Capital A/c
78000
156000





222000


222000


Partners’ Capital A/c


Particulars
Satish
Pradeep
Particulars
Satish
Pradeep



By Balance b/d
120000
90000



By Profit and Loss A/c
78000
78000
To Balance C/d
198000
168000




198000
168000

198000
168000


M/s Satish and Pradeep
Balance Sheet as on 31.3.13

Liabilities
Amount
Amount
Assets
Amount
Amount
Capital :


Sundry Debtors
45000

Satish
198000

Less: New R.D.D.
2250
42750
Pradeep
168000
366000
Factory Building

175000
Sundry Creditors

85000
Plant and Machinery
75000

Outstanding Wages

2500
Less: Depreciation
7500
67500



Cash in Hand

15000



10% Govt. Bond
60000




Add: Interest on Bonds
4500
64500



Prepaid Advertisements

8750



Closing Stock

80000








453500


453500