From the following Trial Balance of Shyam and Sundar, You are required to prepare a Trading and Profit and Loss account for the year ended 31st December, 2002 and Balance sheet as on that date after taking into consideration the additional information. They share profits and losses in their capital ratio.
Trial Balance as
on 31st December, 2002
|
Particulars
|
Amounts
|
Particulars
|
Amounts
|
|
Drawings
|
|
Capital Accounts
|
|
|
Shyam
|
2000
|
Shyam
|
40000
|
|
Sundar
|
1000
|
Sundar
|
60000
|
|
Opening Stock
|
12000
|
Creditors
|
30000
|
|
Purchases
|
80000
|
Sales
|
140000
|
|
Office Salaries
|
6000
|
R.D.D.
|
1000
|
|
Royalties
|
2000
|
Return Outwards
|
2400
|
|
Trade Expenses
|
1400
|
Bills Payable
|
6000
|
|
Advertisement
|
5200
|
Reserve Fund
|
4000
|
|
Wages and Salaries
|
10400
|
|
|
|
Cash in Hand
|
8000
|
|
|
|
Debtors
|
50000
|
|
|
|
Bad Debts
|
400
|
|
|
|
Investments
|
16000
|
|
|
|
Motor Van
|
30000
|
|
|
|
Furniture
|
10000
|
|
|
|
Office Rent
|
3400
|
|
|
|
Plant & Machinery
|
24000
|
|
|
|
Freehold Property
|
16000
|
|
|
|
Bills Receivable
|
4000
|
|
|
|
Discount
|
1600
|
|
|
|
|
283400
|
|
283400
|
Adjustments:
1. Closing stock was valued at Rs. 17, 600
2. Audit Fee for the year was outstanding Rs. 2, 400
3. Create R.D.D at 5% on Debtors.
4. The goods for Rs. 5, 600 purchased and received on
25th December, 2002 were not recorded in the purchase book.
5. Depreciate freehold property at 10% and Motor Van at
25%
In the books
of M/s Shyam and Sundar
Trading
Account for the year ended 31.12.2002
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Opening Stock
|
|
12000
|
By Sales
|
|
140000
|
|
To Purchases
|
80000
|
|
|
|
|
|
(-) Return
|
-2400
|
|
|
|
|
|
|
77600
|
|
|
|
|
|
(+) Unrecorded Purchase
|
5600
|
83200
|
|
|
|
|
To Royalties
|
|
2000
|
|
|
|
|
To Wages & Salaries
|
|
10400
|
|
|
|
|
To Gross Profit C/d
|
|
50000
|
By Closing Stock
|
|
17600
|
|
|
|
157600
|
|
|
157600
|
Profit and Loss Account for the year
ended 31.12.2002
|
Particulars
|
Amt.
|
Amt.
|
Particulars
|
Amt.
|
Amt.
|
|
To Office Salaries
|
|
6000
|
By Gross Profit b/d
|
|
50000
|
|
To Trade Expenses
|
|
1400
|
|
|
|
|
To Advertisement
|
|
5200
|
|
|
|
|
To Office Rent
|
|
3400
|
|
|
|
|
To Discount Allowed
|
|
1600
|
|
|
|
|
To Bad Debts
|
400
|
|
|
|
|
|
(+) F.B.D.
|
-
|
|
|
|
|
|
(+) N.R.D.D.
|
2500
|
|
|
|
|
|
(-) O.R.D.D.
|
-1000
|
1900
|
|
|
|
|
To Outstanding Audit Fees
|
|
2400
|
|
|
|
|
To Depreciation
|
|
|
|
|
|
|
Freehold property
|
1600
|
|
|
|
|
|
Motor Van
|
7500
|
9100
|
|
|
|
|
To Net Profit C/d
|
|
|
|
|
|
|
Shyam
|
7600
|
|
|
|
|
|
Sundar
|
11400
|
19000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50000
|
|
|
50000
|
Partners Current Account
|
Particulars
|
Shyam
|
Sundar
|
Particulars
|
Shyam
|
Sundar
|
|
To Drawings
|
2000
|
1000
|
By Balance b/d
|
40000
|
60000
|
|
To Balance c/d
|
45600
|
70400
|
By Net Profit b/d
|
7600
|
11400
|
|
|
|
|
|
|
|
|
|
47600
|
71400
|
|
47600
|
71400
|
Balance Sheet as on 31.12.1997
|
Liability
|
Amt.
|
Amt.
|
Assets
|
Amt.
|
Amt.
|
|
Capital A/c
|
|
|
Cash in Hand
|
|
8000
|
|
Shyam
|
45600
|
|
Debtors
|
50000
|
|
|
Sundar
|
70400
|
116000
|
(-) N.R.D.D.
|
-2500
|
47500
|
|
Creditors
|
30000
|
|
Investments
|
|
16000
|
|
(+) Unrecorded Purchase
|
5600
|
35600
|
Motor Van
|
30000
|
|
|
Bills Payable
|
|
6000
|
(-) Depreciation
|
7500
|
22500
|
|
Reserve Fund
|
|
4000
|
Furniture
|
|
10000
|
|
Outstanding Audit Fees
|
|
2400
|
Plant & machinery
|
|
24000
|
|
|
|
|
Freehold Property
|
16000
|
|
|
|
|
|
(-)
Depreciation
|
-1600
|
14400
|
|
|
|
|
Bills
Receivable
|
|
4000
|
|
|
|
|
Closing
Stock
|
|
17600
|
|
|
|
164000
|
|
|
164000
|