From the following Trail balance of M/S Mitesh and Mangesh, 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.

Trail Balance as on 21st March, 2019

Debit Balance	Amount ₹	Credit Amount	Amount ₹
Stock as on (1/4/2018)	25,000	Sundry Creditors	38,000
Building	48,500	Sales	1,75,000
Carriage	1,780	Capital:
		Mitesh	1,50,000
		Mangesh	50,000
Factory Insurance	2,700	Outstanding salaries	2,000
Postage	1,600	Bills Payable	18,000
Bills Receivable	13,700	Return outward	1,800
Sundry Debtors	52,200	Current A/c:             Mitesh          Mangesh
			3,000
			2,000
Return Inward	1,600
Purchases	68,900
Audit fees	1,800
Loose tools	32,000
Manufacturing Expenses	1,820
Electricity Charges	2,600
General Expenses	3,400
Export duty	1,000
Cash in Hand	75,000
Bank Balance	29,000
Conveyance	4,100
Furniture	64,000
Salaries	2,000
Rent, Rates & Taxes	3,700
Drawings:
Mitesh	1,200
Mangesh	2,200
	4,39,800		4,39,800

Solution:

 

Final Account 

In the Books of M/s Mitesh and Mangesh  

Trading A/c And Profit & Loss A/c for the year ended 31st march, 2019

Particulars	Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Opening Stock		25,000	By Sales	1,75,000
			(-) Sales return	1,600	1,73,400
To Carriage	1,780		By goods taken by proprietor for his personal use		900
(+) O/s carriage	600	2,380
To Purchases	68,900		By Closing Stock		23,700
(-) Purchase return	1,800	67,100
To factory Insurance		2,700
To Manufacturing Expenses		1,820
To Gross Profit c/d		99,000
		1,98,000			1,98,000

 

To Postage		1,600	By Gross Profit b/d		99,000
To Bad Debt (A)	1,000
(+) R.D.D.    (A)	1,536	2,536
To Audit fees	1,800
(+) O/s Audit fees	400	2,200
To Electricity Charges		2,600
General Expenses		3,400
Export duty		1,000
Conveyance		4,100
To Salaries		2,000
To Rent, Rates & Taxes		3,700
To Depreciation on: building
Furniture	2,000
	3,200	5,200
To Interest on capital:    Mitesh                  Mangesh
	3,750
	1,250	5,000
To Commission:                Mitesh  Mangesh
	990
	990	1,980
To Net Profit c/d
Mitesh	47,763
Mangesh	15,921	63,684
		99,000			99,000

Partner`s Current Account 

Particulars	Mitesh	Mangesh	Particulars	Mitesh	Mangesh
To Drawings	1,200	2,200	By Balance b/d	3,000	2,000
To Drawings		900	By Interest on Capital	3,750	1,250
To balance c/d	54,303	17,061	By Commission	990	990
			By Net Profit b/d	47,763	15,921
	55,503	20,161		55,503	20,161

Balance Sheet as on 31st March, 2019       Liabilities  Amount₹   Amount₹  Assets  Amount ₹  Amount ₹  Current A/c:      Building  48,500             Mitesh  54,303    (-) Depreciation  2,000  46,500        Mangesh  17,061  71,364        Bills Receivables    13,700  Capital A/c:      Sundry Debtors  52,200            Mitesh  1,50,000    (-) Bad debt(A)  1,000          Mangesh  50,000  2,00,000  (-) R.D.D.   (A)  51,200          1,536  49,664        Loose tools    32,000  Sundry Creditors    38,000  Cash in hand    75,000  Bills Payables    18,000  Bank Balance    29,000  Outstanding Salaries    2,000  Furniture  64,000    (-) Depreciation  3,200  60,800  Outstanding Exp:      Closing Stock    23,700  Audit fees  400    carriage  600  1,000                              3,30,364      3,30,364