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
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 | ||||
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 | ||
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 | ||||
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 | ||||