OMTEX CLASSES: Following is the Trial Balance of Vinod and Vikas sharing profits and losses equally. Prepare a Trading and Profit & Loss account for the year ending 31st March, 1996 and a Balance Sheet as on that date after considering the adjustment given below.

Trial Balance as on 31^st March, 1996

Particulars (Debit)	Rs.	Particulars (Credit)	Rs.
Stock (1-4-1995) Purchases Returns Inwards Carriage Motive Power Wages Trade Expenses Sundry Debtors Salaries Insurance Postage Commission Plant & Machinery Furniture Advertising Office Rent (10 months) Drawings Vinod Vikas Building Cash in Hand	44000 170000 10000 4000 6000 56000 4000 72000 38000 2400 3600 5000 60000 16000 8000 10000 14000 6000 24000 3000	Capital A/c Vinod Vikas Sales Creditors Commission Bank Loan	80000 80000 320000 40000 4000 32000
	556000		556000

Adjustments

1. Stock on 31.3.1996 was valued at cost price Rs. 80,000 and market price Rs. 72,000.

2. Insurance has been paid for one year ending 31.6.1996.

3. Goods withdrawn by Vinod amounting to Rs. 10,000 during the year were not recorded in the books.

4. Bad debts were Rs. 2000 and an R.D.D. is to be created at 5% on debtors.

5. Goods of Rs. 6000 were purchased on 30.3.1996 and also included in the closing stock, but the purchase was not recorded in the books of account

Solution:

In the books of M/s Vinod and Vikas

Trading Account for the year ended 31.03.1996

Particulars	Amt.	Amt.	Particulars	Amt.	Amt.
To Opening Stock		44000	By Sales	320000
To Purchases	170000		(-) Return	-10000	310000
(+) Unrecorded	6000	176000	By Goods withdrawn by Partner Vinod		10000
To Carriage		4000
To Motive Power		6000
To Wages		56000
To Gross Profit C/d		106000	By Closing Stock		72000
		392000			392000

Profit and Loss Account for the year ended 31.03.2004

Partners Capital Account

Balance Sheet as on 31.03.2004

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