Surya and Abhijeet are in a Partnership firm. The trial Balance of the firm on 31st March, 2014 was as follows. Prepare Trading and Profit & Loss account for the year ended 31st March, 2014 and a Balance sheet as on that date. Trial Balance as on 31st March, 2014.


Particulars
Debit (Rs.)
Credit (Rs.)
Capitals:


Surya

15000
Abhijeet

10000
Drawings:


Surya
500

Abhijeet
200

Buildings
20000

Plant and Machinery
6000

Cash at Bank
600

Purchases and Sales
47500
75500
Returns
1500
1000
Carriage
350

Opening Stock
11000

Wages
6000

Debtors and Creditors
17600
12600
Salaries
2500

Rent and Insurance
400

Postage and Telegrams
200

Bad Debts
250

Discount
100
50
Reserve for Bad Debts

750
Outstanding Salaries

100
Trade Expenses
300


115000
115000

Adjustments 

1. Partners share Profits and Losses in the ratio of their capitals.

2. Write off Rs. 450 for Bad debts & Reserve for Bad and Doubtful Debts is to be maintained at 5% on the Debtors.

3. Goods worth Rs. 1, 000 were destroyed by fire and the insurance company admitted a claim for Rs. 800.

4. Stock as on 31st December, 2004 was valued at Rs. 8, 000.

5. Goods worth Rs. 1000 were distributed as free samples.

6. Wages outstanding Rs. 1000.

Solution:

In the books of M/s Surya and Abhijeet

Trading Account for the year ended 31.03.2014

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

11000
By Sales
75500

To Purchases
47500

(-) Return
(1500)
74000
(-) Return
(1000)
46500
By Goods distributed as free samples

1000
To Carriage

350
By Goods destroyed by fire

1000
To Wages
6000

By Closing Stock

8000
(+) Out standing
1000
7000



To Gross Profit C/d

19150





84000


84000

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

2500
By Gross Profit b/d

19150
To Rent and Insurance

400
By Discount

50
To Postage and Telegram

200



To Bad debts
250




(+) F.B.D.
450




(+) N.R.D.D.
858




(-) O.R.D.D.
(750)
808



To Discount

100



To Trade expenses

300



To Goods lost on fire
[1000 – 800]

200



To Advertisement

1000



To Net Profit C/d





Surya
8215




Abhijeet
5477
13692





19200


19200

Partners Capital Account
Particulars
Surya
Abhijeet
Particulars
Surya
Abhijeet
To Drawings
500
200
By balance b/d
15000
10000



By Net Profit b/d
8215
5477
To Balance c/d
22715
15277




23215
15477

23215
15477

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


Buildings

20000
Surya
22715

Plant and Machinery

6000
Abjijeet
15277
37992
Cash at bank

600
Creditors

12600
Debtors
17600

Outstanding Salaries

100
(-) F.B.D.
(450)

Outstanding Wages

1000

17150




(-) N.R.D.D.
(858)
16292



Insurance Claim

800



Closing Stock

8000


51692


51692


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