Satish and Pradeep are partners in a partnership firm, sharing Profits and Losses equally.

Satish and Pradeep are partners in a partnership firm, sharing Profits and Losses equally.

Solution: In the books of M/s Satish and Pradeep

Tradind A/c for the year ended 31.3.2013

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening stock		25000	By Sales		430000
To Purchases		220000
To Wages and Salaries	23000
Add: Outstanding	2500	25500
To Manufacturing expenses		25500
			By Closing Stock		80000
To Gross Profit C/d		214000
		510000			510000

Profit and Loss A/c for the year ended 31.3.2013

Particulars	Amount	Amount	Particulars	Amount	Amount
To Discount		4000	By Gross Profit C/d		214000
To Advertisement	10000		By Discount		3500
Less: Prepaid	8750	1250	By Interst on Govt. Bond		4500
To Salaries and Wages		45000
To Warehouse Rent		6000
To Depreciation on Machinery		7500
To R.D.D.		2250
To Net Profit Transferred to Partners Capital A/c
Satish Capital A/c	78000
Pradeep Capital A/c	78000	156000
		222000			222000

Partners’ Capital A/c

Particulars	Satish	Pradeep	Particulars	Satish	Pradeep
			By Balance b/d	120000	90000
			By Profit and Loss A/c	78000	78000
To Balance C/d	198000	168000
	198000	168000		198000	168000

M/s Satish and Pradeep

Balance Sheet as on 31.3.13

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital :			Sundry Debtors	45000
Satish	198000		Less: New R.D.D.	2250	42750
Pradeep	168000	366000	Factory Building		175000
Sundry Creditors		85000	Plant and Machinery	75000
Outstanding Wages		2500	Less: Depreciation	7500	67500
			Cash in Hand		15000
			10% Govt. Bond	60000
			Add: Interest on Bonds	4500	64500
			Prepaid Advertisements		8750
			Closing Stock		80000
		453500			453500