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

37 comments:

  1. How to advertisement interest calculation

    ReplyDelete
    Replies
    1. 10000/2×3÷12=1250
      Put 1250 rupees in outer column and deduct it from original amount.
      10000-8750=1250
      Rs 8750 is prepaid

      Delete
    2. • advertisement is paid for (2yrs )from 1 jan 2013...

      •our financial year ends on 31 march 2013

      •therfore advertisement is prepaid for 21 months ....

      10000 for 2 yrs
      5000 for. 1 yr
      2500. For 6months
      1250 for. 3 months



      First effect

      To advertise. 10000
      (-) prepaid. 8250. 1750

      2 effect

      Balance sheet
      Asset side

      Prepaid advertisement. 8750

      Delete
    3. This comment has been removed by the author.

      Delete
  2. how to closing stock cost price

    ReplyDelete
  3. How to calculate closing stock and interest on advertisement plzzz reply

    ReplyDelete
    Replies
    1. Closing stock is a 15% above its cost price is liye 92000 closing pe 15 percent nikalye gay or oh 15 percent less kare gay
      92000×15÷115=12000 and 12000-92000=80000

      Delete
  4. Intrest la to mujhe bhi batao

    ReplyDelete
  5. advertisement (2 years with effect from 1 jan 2013)
    calculate in months..(2 yrs= 24 months)
    21x10000/24 =8750
    so 8750 is prepaid amt...outer column amount 10000-8750= 1250

    ReplyDelete
    Replies
    1. 24 months-3 months(1 jan to 31 march)=21 months which is prepaid

      Delete
    2. Bro make it simple...
      10000 for 2 yrs
      5000 for. 1 yr
      2500. For 6months
      1250 for. 3 months

      First effect

      To advertise. 10000
      (-) prepaid. 8250. 1750

      2 effect

      Balance sheet
      Asset side

      Prepaid advertisement. 8750

      Delete
  6. How to calculate int on govt bonds😕

    ReplyDelete
  7. 60000×10/100=6000
    6000×8/12=4500 (as 1.7.12 to 31.3.13 =8 months)

    ReplyDelete
    Replies
    1. it's 6000x9/12=4500(as 1.7.12 to 31.3.13= 9 months)

      Delete
    2. how 9 is come the has given 01/07/2012

      Delete
    3. 1.7.12(1 july 2012) .calculate from 1 july 2012 to 31 march 2013...it is said 1.7.2012 means take the july month even in consideration.

      Delete
  8. I can't understand c/s stock adj

    ReplyDelete
    Replies
    1. This comment has been removed by the author.

      Delete
    2. Closing stock is 15% above its cost price ₹92000..
      consider the cost price as 100...15% above its cost means 100+15=115
      Cost price... Market price
      100.......... 115
      ? 92000....cross multiply to get the cost price

      92000x100=9200000/115 = ₹80000....if you got any doubt feel free to ask :)

      Delete
  9. Y do we put warehouse rent in profit and loss a/c

    ReplyDelete
    Replies
    1. logic is ware house(storage of goods) is not linked with production or direct sale of goods.... so it indirect expenditure...and it goes to pnl a/c

      Delete
  10. Advertisement(for2year w.e.f 01.01.2013

    ReplyDelete
    Replies
    1. advertisement (2 years with effect from 1 jan 2013)
      calculate in months..(2 yrs= 24 months)
      21x10000/24 =8750
      so 8750 is prepaid amt...outer column amount 10000-8750= 1250

      Delete
  11. This comment has been removed by the author.

    ReplyDelete
  12. Why dont u provides working notes?

    ReplyDelete
  13. Closing stock me 92000*15/115=12000 but 115kese aaye

    ReplyDelete
  14. Outstanding wages trading me?

    ReplyDelete