Accounting Solution

Amitbhai and Narendrabhai Are in Partnership: Complete Accounting Solution for Trading and Profit & Loss Account and Balance Sheet

Introduction:

Amitbhai and Narendrabhai are in Partnership sharing Profits and losses equally. from the following Trail balance and Adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date.


"In this updated guide, we provide a comprehensive accounting solution for Amitbhai and Narendrabhai's are in partnership. This includes detailed steps for preparing the Trading and Profit & Loss Account and Balance Sheet as of 31st March 2019. Recent updates include additional examples, enhanced explanations, and a clearer breakdown of complex concepts to help accounting students better understand the process." 

  

Trail Balance as on 31st March 2019:  

Debit Balance 

Amount ₹ 

Credit Balance 

Amount ₹ 

Plant & Machinery 

2,80,000 

Capital A/c: Amitbhai 

3,50,000 

Factory Building 

75,000 

Capital A/c: Narendrabhai 

3,00,000 

Sundry Debtors 

28,700 

Sales 

1,80,000 

Purchases 

85,500 

Bills Payable 

8,500 

Bad Debts 

500 

Discount 

1,200 

Sales return 

2,200 

Creditors 

38,500 

10% Govt. Bond 

40,000 

R.D.D. 

2,700 

(Purchased on 1st Oct 2018) 

 

Bank Loan 

15,000 

Import Duty 

1,800 

 

 

Legal Charges 

2,000 

 

 

Motive Power 

12,000 

 

 

Warehouse rent 

1,800 

 

 

Cash in Hand 

20,000 

 

 

Cash at Bank 

70,000 

 

 

Advertisement 

10,000 

 

 

(For 2-year, w.e.f 1st Jan 2019) 

 

 

 

Salaries 

3,800 

 

 

Rent 

1,500 

 

 

Drawings: Amitbhai 

2,400 

 

 

Drawings: Narendrabhai 

3,200 

 

 

Furniture 

1,95,800 

 

 

Bills Receivable 

20,700 

 

 

Freehold Property 

41,000 

 

 

Total 

8,97,900 

Total 

8,97,900 

Amitbhai and Narendrabhai Are in Partnership: Complete Accounting Solution for Trading and Profit & Loss Account and Balance Sheet

Introduction: Amitbhai and Narendrabhai are in Partnership sharing Profits and losses equally. from the following Trail balance and Adjustme...