Trial Balance as on 31st March, 2019
Debit Balance | Amount | Credit Balance | Amount |
Land & Building | 40,000 | Capital A/c Sun | 33,500 |
Moon | 33,500 | ||
Furniture | 18,000 | Current A/c: Sun | 6,000 |
Machinery | 40,000 | Sundry Creditors | 25,000 |
(Purchased on 01/07/18) | Bank Overdraft | 10,000 | |
Goodwill | 2,000 | Reserve Fund | 5,000 |
Wages | 2,000 | Provident Fund | 5,000 |
Current A/c: Moon | 4,000 | ||
8% Debentures | 8,000 | ||
(Purchased on (01/10/18) | |||
Providend Fund Investment | 3,500 | ||
Stock of Postal stamps | 500 | ||
1,18,000 | 1,18,000 | ||
Adjustments:
1. Partners are entitled to get salary 6,000 p.a. in additional to their profit & loss sharing.
2. Depreciation on Land & Building, Furniture & Machinery @10%, 5% and 3% respectively.
3. Interest on Capital 5% p.a.
4. Closing stock 60,743
5. Wages included 1,000 as advance given to workers.
6. Interest due but not paid 800.
7. Total Net Profit amounted to 38,113.
Solution:
Final Account
In the books of Sun and Moon
Trading A/c And Profit & Loss A/c for the year ended 31st march, 2019
Particulars | Amount | Amount | Particulars | Amount | Amount |
To Wages | 2,000 | ||||
(-) Prepaid wages | (1,000) | 1,000 | |||
By Closing Stock | 60,743 | ||||
To Gross Profit | 59,743 | ||||
60,743 | 60,743 | ||||
To Depreciation on | By Gross Profit | 59,743 | |||
Land & building | 4,000 | ||||
Furniture | 900 | ||||
Machinery | 900 | 5,800 | |||
To Interest on Capital | By Interest on Debentures | 320 | |||
Sun | 1,675 | ||||
Moon | 1,675 | 3,350 | |||
Outstanding Interest | 800 | ||||
To Partners Salary | |||||
Sun | 6,000 | ||||
Moon | 6,000 | 12,000 | |||
To Net Profit | |||||
Sun | 19,056 | ||||
Moon | 19,057 | 38,113 | |||
60,063 | 60,063 | ||||
Partner`s Current Account
Particulars | Sun | Moon | Particulars | Sun | Moon |
To Balance b/d | 4,000 | By Balance c/d | 6,000 | ||
By Interest on Capital | 1,675 | 1,675 | |||
By Salary | 6,000 | 6,000 | |||
To Balance b/d | 32,731 | 22,732 | By Net Profit | 19,056 | 19,057 |
32,731 | 26,732 | 32,731 | 26,732 | ||
Balance Sheet as on 31st March, 2019
Liabilities | Amount | Amount | Assets | Amount | Amount |
Capital A/c: | Land & Building | 40,000 | |||
(-) Depreciation | (4,000) | 36,000 | |||
Sun | 33,500 | Furniture | 18,000 | ||
(-) Depreciation | (900) | 17,100 | |||
Moon | 33,500 | 67,000 | Machinery | 40,000 | |
(-) Depreciation | (900) | 39,100 | |||
Goodwill | 2,000 | ||||
Current A/c | |||||
Sun | 32,731 | 8% Debentures | 8,000 | ||
(+) Interest | 320 | 8,320 | |||
Moon | 22,732 | 55,463 | Provident Fund Investment | 3,500 | |
Stock of Postal Stamp | 500 | ||||
Creditors | 25,000 | Closing Stock | 60,743 | ||
Bank Overdraft | 10,000 | Prepaid wages | 1,000 | ||
Reserve Fund | 5,00 | ||||
Provident Fund | 5,000 | ||||
Outstanding Interest | 800 | ||||
1,68,263 | 1,68,263 | ||||
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