Q. 7. FINAL ACCOUNT SOLUTION: March 2018

The Question

M/S Shailesh and Nilesh

Final Accounts - Solution

Trading Account
for the year ended 31st March 2016

Debit (Dr.)

Particulars	Rs.
To Opening Stock	88,000
To Purchases	176,000
To Wages	23,500
To Gross Profit c/d	90,500
Total	378,000

Credit (Cr.)

Particulars	Rs.
By Sales	308,000
By Closing Stock	70,000
Total	378,000

Profit and Loss A/c
for the year ended 31st March 2016

Debit (Dr.)

Particulars	Rs.	Rs.
To Bad debts	4,000
Add: N.R.D.D.	4,100	8,100
To Salaries	18,000
Add: Outstanding	3,600	21,600
To Office Expenses		8,000
To Bank Charges		2,600
To Electricity Charges		9,900
To Depreciation on Machinery		6,000
To Interest on Capital:
Shailesh	9,600
Nilesh	9,600	19,200
To Net Profit:
Shailesh Current A/c	8,350
Nilesh Current A/c	8,350	16,700
Total		92,100

Credit (Cr.)

Particulars	Rs.
By Gross Profit b/d	90,500
By Interest on Debentures	1,600
Total	92,100

Partners Current A/c

Debit (Dr.)

Particulars	Shailesh	Nilesh
To Drawings	3,000	2,000
To Balance c/d	19,950	19,950
Total	22,950	21,950

Credit (Cr.)

Particulars	Shailesh	Nilesh
By Balance b/d	5,000	4,000
By Interest on Capital	9,600	9,600
By Profit and Loss A/c	8,350	8,350
Total	22,950	21,950

Balance Sheet
as on 31st March 2016

Liabilities

Particulars	Rs.	Rs.
Partners Capital A/c:
Shailesh	120,000
Nilesh	120,000	240,000
Partners' Current A/c:
Shailesh	19,950
Nilesh	19,950	39,900
Sundry Creditors		103,000
Bank Overdraft		60,000
Outstanding Salaries		3,600
Total		446,500

Assets

Particulars	Rs.	Rs.
Land and Building		130,000
Machinery	90,000
Less: Depreciation	6,000	84,000
Furniture		43,000
Sundry Debtors	82,000
Less: R.D.D.	4,100	77,900
8% Debentures	40,000
Add: Interest	1,600	41,600
Closing Stock		70,000
Total		446,500