Sucheta & Gayatri are Partners sharing Profit and Losses in the ratio 3:2. From the following Trial Balance and additional information 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

Trial Balance as on 31st March, 2019

Particulars	Debit	Credit
Purchases & Sales	65,000	1,85,500
Works Manager`s Salary	2,300
Capital – Sucheta		75,000
- Gayatri		40,000
Opening stock	18,700
Debtors & Creditors	47,500	35,000
Wages & Salaries	4,000
Bills Receivable	22,000
Bills Payable		27,300
Discount		400
Motive Power	1,350
Custom Duty	1,500
Interest		1,300
Unproductive Wages	3,000
Audit fees	2,500
Rent	1,800
Conveyance	2,000
Goodwill	25,000
Copyrights	20,000
Building	88,000
Partner (Sucheta`s) Loan		6,150
Investments	40,000
Cash at Bank	26,000
	3,70,650	3,70,650

 Adjustments:

1. Stock on 31st March 2019 was valued at 19,700.

2. Goods costing 3,000 distributed as free sample.

3. Motive Power includes 500 paid for deposit of Power Meter.

4. Depreciation Building @5%

5. Write of 2,000 for Bad Debts and maintain R.D.D. at 3% on Debtors.

6. Bills Receivable included dishonored of bill of 4,000

Solution:

In the books of Sucheta & Gayatri Final Account

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

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		18,700	By Sales		1,85,500
To Purchases		65,000
To Works manager`s Salary		4,000	By Closing Stock		19,700
To motive Power	1,350		By Goods distributed as free sample		3,000
(-) Power Meter	(500)	850
To Custom Duty		1,500
To Gross Profit c/d		1,15,850
		2,08,200			2,08,200

To Bad Debts (A)	2,000		By Gross Profit		1,15,850
(+) R.D.D. (A)	1,485	3,485
To Audit fees		2,500	By Discount		400
To Rent		1,800	By Interest		1,300
To Conveyance		2,000
To Advertisements		3,000
To Depreciation on Building		4,400
To Unproductive Wages		3,000
To Net Profit
Sucheta	58,419
Gayatri	38,946	97,365
		1,17,550			1,17,550

 

Partner`s Capital Account

Particulars	Sucheta	Gayatri	Particulars	Sucheta	Gayatri
To Balance c/d	1,33,419	78,946	By Balance c/d	75,000	40,000
			By Net Profit b/d	58,419	38,946
	1,33,419	78,946		1,33,419	78,946

Balance Sheet as on 31st March, 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c:			Goodwill		25,000
Sucheta	1,33,419		Copyrights		20,000
Gayatri	78,946	2,12,365	Bills receivable	22,000
			(-) bill Dishonored	4,000	18,000
			Building	88,000
			(-) depreciation	4,400	83,600
Creditors		35,000	Investments		40,000
Bills Payable		27,300	Cash at Bank		26,000
Partner (Sucheta`s) Loan		6,150	Debtors	47,500
			(+) bill dishonored	4,000
			(-) Bad debts	2,000
				49,500
			(-) R.D.D.	1,485	48,015
			Closing Stock		19,700
			Power Meter		500
		2,80,815			2,80,815

Alternate:

Balance Sheet as on 31st March, 2019 

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c:			Goodwill		25,000
Sucheta	75,000		Copyrights		20,000
Gayatri	40,000		Bills receivable	22,000
			(-) bill Dishonored	4,000	18,000
(+) Net Profit	97,365	2,12,365	Building	88,000
			(-) depreciation	4,400	83,600
Creditors		35,000	Investments		40,000
Bills Payable		27,300	Cash at Bank		26,000
Partner (Sucheta`s) Loan		6,150	Debtors	47,500
			(+) bill dishonored	4,000
			(-) Bad debts	2,000
				49,500
			(-) R.D.D.	1,485	48,015
			Closing Stock		19,700
			Power Meter		500
		2,80,815			2,80,815