Q. 7. FINAL ACCOUNT SOLUTION: March 2018

M/S Shailesh and Nilesh
Trading for the year ended 31st March 2016,

Particulars
Rs.
Rs.
Particulars
Rs.
Rs.
To Opening Stock

88000
By Sales

308000
To Purchases

176000
By Closing Stock

70000
To wages

23500



To Gross Profit c/d

90500











378000


378000

Profit and Loss A/c for the year ended 31st March, 2016
Particulars
Rs.
Rs.
Particulars
Rs.
Rs.
To Bad debts
4000

By Gross Profit b/d

90500
Add: N.R.D.D.
4100
8100
By Interest on Debentures.

1600
To Salaries
18000




Add: Outstanding
3600
21600



To Office Expenses

8000



To Bank Charges

2600



To Electricity Charges

9900



To Depreciation on Machinery

6000



To Interest on Capital





Shailesh
9600




Nilesh
9600
19200



To Net Profit:





Shailesh Current A/c
8350




Nilesh Current A/c
8350
16700











92100


92100


Partners Current A/c


Particulars
Shailesh
Nilesh
Particulars
Shailesh
Nilesh
To Drawings
3000
2000
By Balance b/d
5000
4000
To Balance c/d
19950
19950
By Interest on Capital
9600
9600



By Profit and Loss A/c
8350
8350







22950
21950

22950
21950


Balance Sheet as on 31st March, 2016.

Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Partners Capital A/c


Land and Building

130000
Shailesh
120000

Machinery
90000

Nilesh
120000
240000
Less: Depreciation
6000
84000






Partners’ Current A/c


Furniture

43000
Shailesh
19950

Sundry Debtors
82000

Nilesh
19950
39900
Less: R.D.D.
4100
77900
Sundry Creditors

103000
8% Debentures
40000

Bank Overdraft

60000
Add: Interest
1600
41600
Outstanding Salaries

3600
Closing Stock

70000








446500


446500

36 comments:

  1. how 1600 interest on debentures.

    ReplyDelete
    Replies
    1. It's given 8% on debentures hence we take out 8%on debentures that is ₹3200 and the date is give as 1st Oct hence we take it as ₹3200*6/12 and we get the answer /₹1600

      Delete
    2. 40000×6/16 × 8/100 =1600

      Delete
    3. It is given in the adjustment read properly u cme to knw

      Delete
  2. How the depreciation charge on machinery 60000

    ReplyDelete
    Replies
    1. Yeah right evwn i am not gettung this adjustments

      Delete
    2. Machinery is given 90000.But in adjustment it is given that machinery includes purchase of machinery for Rs.40000 on 1st January,2016.
      So,in the asset side you have to show,
      Machinery=50000
      (+) Purchase =40000
      Therefore, 50000*10/100 + 40000*3/12*10/100.

      Delete
    3. Please tell me in detail

      Delete
    4. Yes I am also very confused please give me the proper answer in detail sir/ madam please as soon as possible

      Delete
    5. First u need to provide depreciation on 50000 for whole year and then you have to add depreciation on 40000 for 3 months on

      Delete
  3. How closing stock value is 70000

    ReplyDelete
  4. How machinery adjustment done

    ReplyDelete
    Replies
    1. Its 9000 only typing mistake....

      Delete
    2. Machinery is given 90000.But in adjustment it is given that machinery includes purchase of machinery for Rs.40000 on 1st January,2016.
      So,in the asset side you have to show,
      Machinery=50000
      (+) Purchase =40000
      Therefore, 50000*10/100 + 40000*3/12*10/100.

      Delete
    3. In the adjustment there is not shown about to take 10%

      Delete
  5. How outstanding salary come 3600

    ReplyDelete
  6. Salaries is given 18000 for only 10 months,but we want it for 12 months.
    So, 10 months = 18000
    2 months = ?
    By cross multiplication you will get Outstanding salaries 3600.

    ReplyDelete
    Replies
    1. How say yaar how do cross multiply

      Delete
    2. 10 = 18000 then 2=? 2 step 18000×2= 360000 we get 3 step 36000 ÷10 = 3600 we get

      Delete
    3. Yet i didnt understood

      Delete
  7. HOW IS INTEREST ON CAPITAL 9600 ,PLZ REPLY JALDI

    ReplyDelete
    Replies
    1. Capital given in trail balance 120000 so 120000*8/100
      Your answer- 9600

      Delete
  8. 8% on debentures is 3440 how did you get 3200

    ReplyDelete
  9. You help me alot sir thank u very much sir..omtex classes is the best..

    ReplyDelete
  10. How is closing stock 70000

    ReplyDelete
  11. Can you please tell me how u corss multiplied salaries

    ReplyDelete
  12. Thank you so much sir for your precious help 🙏💖

    ReplyDelete