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