From the following Trial Balance of M/s Sonia and Sufi, you are required to prepare Trading Profit and Loss Account for the year ended 31st December, 2004 and the Balance sheet as on that date.


Trial Balance as on 31.12.2004
Particulars
Debit (Rs.)
Credit (Rs.)
Sonia’s Capital
Sufi’s capital
Sonia’s Drawing
Sufi’s Drawing
Stock on 1 – 1 – 2004
Bills Receivable
Purchases
Sales
Bills Payable
Return In ward
Return Outward
Plant and Machinery
Loose Tools
Patents
Sundry Debtors
Sundry Creditors
Cash at Bank
Wages
Salaries
Rent and Taxes
Insurance
Printing and Stationery
Power and Fuel


14, 450
10, 000
2, 00, 000
25, 000
2, 75, 000


5, 000

1, 00, 000
25, 000
25, 000
1, 25, 000

77, 550
19, 000
17, 500
7, 500
3, 000
2, 000
3, 500
1, 80, 000
1, 50, 000





4, 00, 000
60, 000

4, 500




1, 40, 000







9, 34, 500
9, 34, 500
Adjustments:
1.   Stock as on 31st December, 2004 Rs. 1, 30,000 and its market value were Rs. 1, 40,000.
2.   Write off Rs. 1000 for bad & Provide for Bad and Doubtful debts at 5% on Sundry Debtors.
3.   Goods worth Rs. 1000 were distributed as free samples.
4.   Prepaid Insurance Rs. 750.
5.   Depreciate Plant and Machinery by 10% p.a. and Patent by 15% p.a.
6.   Outstanding Salaries Rs. 2,500  


7.   Uninsured goods worth Rs 1200 were lost by fire.  

ANSWER

GROSS PROFIT 34200

NET LOSS -20700

BALANCE SHEET TOTAL

487350


Solution:
In the books of M/s Sonia and Sufi
Trading Account for the year ended 31.03.2014

Particulars
Amt.
Amt.
Particulars
Amt.
Amt.
To Opening Stock

200000
By Sales
400000

To Purchases
275000

(-) Return
(5000)
395000
(-) Return
(4500)
270500
By Goods distributed as free samples

1000
To Wages

19000
By Goods destroyed by fire

1200
To Power and Fuel

3500
By Closing Stock

130000
To Gross Profit C/d

34200





527200


527200

Profit and Loss Account for the year ended 31.03.2014
Particulars
Amt.
Amt.
Particulars
Amt.
Amt.
To Depreciation


By Gross Profit b/d

34200
Plant and Machinery
10000




Patent
3750
13750



To Bad debts
-




(+) FBD
1000




(+) NRDD
6200




(-) ORDD
-
7200



To Salaries
17500




(+) Out Standing
2500
20000



To Rent and Taxes

7500



To Insurance
3000




(-) Prepaid
(750)
2250



To Printing and Stationery

2000



To Advertisements

1000



To Loss on Fire

1200












By Net Loss c/d





Sonia
10350




Sufi
10350
20700


54900


54900

Partners Capital Account
Particulars
Sonia.
Sufi
Particulars
Sonia
Sufi
To Drawings
14450
10000
By balance b/d
180000
150000
To Net Loss b/d
10350
10350



To Balance c/d
155200
129650




180000
150000

180000
150000

Balance Sheet as on 31.03.2014
Liability
Amt.
Amt.
Assets
Amt.
Amt.
Capital A/c


Bills Receivable

25000
Sonia
155200

Plant and Machinery
100000

Sufi
129650
284850
(-) Depreciation @10%
(10000)
90000
Bills Payable

60000
Loose tools

25000
Sundry Creditors

140000
Patents
25000

Outstanding Salaries

2500
(-) Depreciation @15%
3750
21250



Sundry Debtors
125000




(-) FBD
(1000)





124000




(-) NRDD @ 5%
(6200)
117800



Cash at bank

77550



Prepaid Insurance

750



Closing Stock

130000








487350


487350