Following is the Trial Balance of Jitesh and Pritesh. The partners share profits and losses equally. [March 2012]


Trial balance as on 31st March, 2010
Particulars
Debit balances
Credit balances
Capital – Jitesh
Pritesh
Bills Receivable and Bills Payable
Opening Stock
Purchases and Sales
Returns
Salaries
Wages
Conveyance
Commission
Miscellaneous Expenses
Warehouse Rent [P/L A/c ]
Brokerage
Dock charges [Tr. A/c]
Insurance
Goodwill
Land and Building
Shares in Bajaj Ltd.
Cash in hand
Sundry Debtors and Creditors
Motor van


40000
70000
194000
3000
15600
28400
2200

3200
9000
3000
4200
4800
76000
180000
50000
3600
56000
60000
200000
120000
50000


4000



6000









60000
803000
803000
Adjustments
1.   Closing stock was valued at Rs. 75000.
2.   Depreciate land and building and motor van at 5% p.a.
3.   Insurance is paid for the year ended 31st May, 2010.
4.   Jitesh has taken goods of Rs. 3000 for his personal use.
5.   Gooks of Rs. 8,000 were destroyed by fire and the Insurance Company admitted a claim of Rs. 6,400 only.
6.   Commission due but not received Rs. 1600
Prepare after taking into account the adjustments. Trading and Profit and Loss account for the year ended 31st March 2010 and Balance sheet as on that date.

153400
110400
252200-175200
537400
GROSS PROFIT
NET PROFIT
PARTNERS CAPITAL ACCOUNT BALANCE
BALANCE SHEET TOTAL

Solution: In the books of Jitesh & Pritesh


Trading A/c for the year ended 31.03.10


Particulars
Amount
Amount
Particulars
Amount
Amount
To Opening Stock

70000
By Sales
363000

To Purchases
194000

(-) Return
-3000
360000
(-) Return
-4000
190000
By Goods taken over by Jitesh

3000
To Wages

28400
By Goods destroyed by fire

8000
To Dock Charges

4200






By Closing Stock

75000
To Gross Profit C/d

153400





446000


446000



Profit and Loss A/c for the year ended 31 – 3 – 10

Particulars
Amount
Amount
Particulars
Amount
Amount
To Salaries

15600
By Gross Profit b/d

153400
To Miscellaneous Expenses

3200
By Commission
6000

To Warehouse Rent

9000
(+) Outstanding
1600
7600
To Brokerage

3000



To Insurance
4800




(-) Prepaid
-800
4000



To Depreciation





Land and Building
9000




Motor Van
3000
12000



To Loss by Fire

1600



To Conveyance

2200









To Net Profit C/d





Jitesh
55200




Pritesh
55200
110400





161000


161000



Partners Current A/c

Particulars
Jitesh
Pritesh
Particulars
Jitesh
Pritesh
To Drawings
[Goods]
3000

By Balance b/d
200000
120000



By Net Profit b/d
55200
55200
To Balance c/d
252200
175200




255200
175200

255200
175200



Balance Sheet as on 31.3.10

Liabilities
Amount
Amount
Assets
Amount
Amount
Capital A/c


Bills Receivable

40000
Jitesh
252200

Outstanding Commission

1600
Pritesh
175200
427400
Goodwill

76000
Bills Payable

50000
Land & Building
180000

Sundry Creditors

60000
(-) Depreciation @ 5%
-9000
171000



Shares in Bajaj Ltd.

50000



Cash in hand

3600



Sundry Debtors

56000



Motor Van
60000




(-) Depreciation @5%
-3000
57000



Closing Stock

75000



Prepaid Insurance

800



Insurance Claim

6400


537400


537400