Misha and Latha are partners sharing profits and losses in the ratio of 2 : 1. From the following Trial Balance prepare Trading and Profit and loss account for the year ending 31st December, 2004.


                                      Trial Balance as on 31.12.2004
Particulars
Debit (Rs.)
Credit (Rs.)
Stock (1st January)
Sundry Debtors
Bills payable
Purchases
Wages
Returns Outward
Salaries
Office Expenses
Insurance
Plant & Machinery
Sundry Creditors
Rent
Sales
Reserve for Doubtful Debts
Travelling Expenses
Returns Inward
Land and Building
Bills Receivable
Bank
Misha’s capital
Latha’s capital

10, 000
28, 000

40, 000
8, 500

2, 700
2, 446
1, 300
30, 000

1, 800


1, 400
3, 500
44, 800
3, 400
6, 655
.
.
10, 101
.
.
2, 500
.
.
.
.
21, 500
.
60, 000
400
.
.
.
.
.
. 60, 000
30, 000
1, 84, 501
1, 84, 501
Adjustments:

1.   Closing stock was valued at Rs. 26,500.
2.   Provide 10% Depreciation on Plant and Machinery.
3.   Goods worth Rs. 1000 were distributed as free samples.
4.   Prepaid Insurance Rs. 300.
5.   Maintain Reserve for Doubtful debts at 10% of Sundry debtors.
6.   Outstanding rent for the current year Rs. 200.
Goods worth Rs. 100 were taken over by Latha for her personal use, but no entry is made in the books. 


ANSWER:


GROSS PROFIT 28100

NET PROFIT 12154

BALANCE SHEET TOTAL 

133855