Q.7. Ashok and Tanaji are Partners sharing Profit
and Losses in the ratio 2:3 respectively. Their Trial Balance as on 31st
March, 2007 is given below. You are required to prepare Trading and Profit and
Loss Account for the year ended 31st March, 2007 and Balance Sheet
as on that date after taking into account the given adjustments.
Trial Balance as on 31st
March, 2007
Particulars
|
Amt. (Rs.)
|
Particulars
|
Amt. (Rs.)
|
Purchases
Patents Right
Building
|
98,000
4,000
1,00,000
|
Capital:
Ashok
Tanaji
|
30,000
40,000
|
Stock (1.04.2006)
|
15,000
|
Provident Fund
|
7,000
|
Printing and
Stationery
|
1,750
|
Creditors
|
45,000
|
Sundry Debtors
Wages and Salaries
|
35,000
11,000
|
10% Bank Loan taken
on 1st April 2006
|
12,000
|
Audit Fees
|
700
|
Sales
|
1,58,000
|
Sundry Expenses
|
3,500
|
Reserve for Doubtful
Debts
|
250
|
Furniture
|
8,000
|
Purchase Returns
|
3,500
|
Investment
|
10,000
|
||
Cash
|
4,000
|
||
Provident Fund
Contribution
|
800
|
||
Carriage Inwards
|
1,300
|
||
Travelling Expenses
|
2,700
|
||
2,95,750
|
2,95,750
|
Adjustments:
(1)
Closing stock is valued at the cost of Rs. 15,000 while its market price is Rs.18,000.
(2)
On 31st March, 2007 the stock of
stationery was Rs. 500.
(3)
Provide reserve for bad and doubtful debts at 5% on
debtors.
(4)
Depreciate building at 5% and patent rights at 10%.
(5)
Interest on capitals is to be provided at 5% p.a. (20)
Trading Account for the year ended 31st
March 2007
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To
Opening Stock
|
15,000
|
By
Sales
|
1,58,000
|
||
To
Purchases
Less:
Returns
|
98,000
3,500
|
94,500
|
|||
To
Wages & Salaries
|
11,000
|
||||
To
Carriage Inwards
|
1,300
|
||||
To
Gross Profit c/d
|
51,200
|
By
Closing Stock
|
15,000
|
||
1,73,000
|
1,73,000
|
Profit & Loss A/c for the year ended 31st
March 2007
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To
Printing & Stationery
|
1,750
|
To
Gross Profit b/d
|
51,200
|
||
Less:
Stock
|
500
|
1,250
|
|||
To
Audit Fees
|
700
|
||||
To
Sundry Expenses
|
3,500
|
||||
To
Provident Fund Contribution
|
800
|
||||
To
Travelling Expenses
|
2,700
|
||||
To
Bad Debts
|
-
|
||||
Add:
New Bad debts
|
-
|
||||
Add:
New R.D.D.
|
1,750
|
||||
Less:
Old R.D.D.
|
1,750
250
|
1,500
|
|||
To
Depreciation on
Patent
Right
Building
|
400
5,000
|
5,400
|
|||
To
Interest on Capital
Ashok
Tanaji
|
1,500
2,000
|
3,500
|
|||
To
Interest on loan
|
1,200
|
||||
To
Net Profit
Ashok
(2/5)
Tanaji
(3/5)
|
12260
18390
|
30650
|
|||
51,200
|
51,200
|
Partner’s Capital A/c
Particulars
|
Ashok
|
Tanaji
|
Particulars
|
Ashok
|
Tanaji
|
By
Balance b/d
|
30,000
|
40,000
|
|||
By
Interest on Capital
|
1,500
|
2,000
|
|||
To
Balance c/d
|
43,760
|
60,390
|
By
Net Profit
|
12,260
|
18,390
|
43,760
|
60,390
|
43,760
|
60,390
|
Balance Sheet as on
31-3-2007
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
Partners
Capital
Ashok
Tanaji
|
43,760
60,390
|
1,04,150
|
Patents
Right
(-)
10% Depreciation
|
4,000
400
|
3,600
|
Building
Less:
5% Depreciation
|
1,00,000
5,000
|
95,000
|
|||
Provident
Fund
Creditors
|
7,000
45,000
|
Sundry
Debtors
Less:
New R.D.D.
|
35,000
1,750
|
33,250
|
|
Bank
Loan (10%)
Add:
Interest
|
12,000
1,200
|
13,200
|
Furniture
Investment
|
8,000
10,000
|
|
Cash
|
4,000
|
||||
Closing
Stock
|
15,000
|
||||
Stock
of Stationery
|
500
|
||||
1,69,350
|
1,69,350
|
