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प्रश्न
Amit bhai and Narendra bhai are in Partnership Sharing Profits and Losses equally. From the following Trial 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.
Trial Balance as on 31st March 2019
Debit Balance | Amount ₹ | Credit Balance | Amount ₹ |
Plant & Machinery | 2,80,000 | Capital A/c: | |
Factory Building | 75,000 | Amitbhai | 3,50,000 |
Sundry Debtors | 28,700 | Narendrabhai | 3,00,000 |
Purchases | 85,500 | Sales | 1,80,000 |
Bad Debts | 500 | Bills Payable | 8,500 |
Sales Return | 2,200 | Discount | 1,200 |
10% Govt. Bond |
40,000 | Creditors | 38,500 |
Import Duty | 1,800 | R.D.D. | 2,700 |
Legal Charges | 2,000 | Bank Loan | 15,000 |
Motive Power | 12,000 | Purchases Return | 2,000 |
Warehouse Rent | 1,800 | ||
Cash in Hand | 20,000 | ||
Cash at Bank | 70,000 | ||
Advertisement (for 2 years, w.e.f 1st Jan 2019) |
10,000 | ||
Salaries | 3,800 | ||
Rent | 1,500 | ||
Drawings : | |||
Amitbhai | 2,400 | ||
Narendrabhai | 3,200 | ||
Furniture | 1,95,800 | ||
Bills Receivable | 20,700 | ||
Freehold Property | 41,000 | ||
8,97,900 | 8,97,900 |
Adjustments:
1) Stock on hand on 31st March 2019 was valued at ₹ 43,000.
2) Uninsured goods worth ₹ 8,000 were stolen.
3) Create R.D.D at 2% on Sundry debtors.
4) Mr. Patil, our customer becomes insolvent and could not pay his debts of ₹ 500.
5) Outstanding Expenses - Rent ₹ 800 and Salaries ₹ 300
6) Depreciate Factory Building by ₹ 2,500 and Furniture by ₹ 1,800
उत्तर
In the books of Amitbhai and Narendrabhai
Dr. | Trading and Profit and Loss Account for the year ended on 31st March 2019 |
|||||
Particulars |
Amount (₹) |
Amount (₹) |
Particulars | Amount (₹) | Amount (₹) |
|
To Purchases | 85,500 | By Sales | 1,80,000 | |||
(-) Purchase Return | 2,000 | 83,500 | (-) Sales Return | 2,200 | 1,77,800 | |
To Import Duty | 1,800 | By Goods Stolen Away | 8,000 | |||
To Motive Power | 12,000 | By Closing Stock | 43,000 | |||
To Gross Profit c/d | 1,31,500 | |||||
2,28,800 | 2,28,800 | |||||
To Warehouse Rent | 1,800 | By Gross Profit b/d | 1,31,500 | |||
To R.B.D.D. A/C | By Discount | 1,200 | ||||
Bad debts | 500 | By O/s Interest on Govt. Bonds | 2,000 | |||
(+) New Bad debts | 500 |
By R.D.D. A/c (Excess Reserve)(2,700 – 1,564) |
1,136 | |||
(+) New R.D.D. | 564 | |||||
1564 | ||||||
(-) Old Reserve | 2700 | |||||
To Legal Charges | 2,000 | |||||
To Advertisement Expenses | 10,000 | |||||
(-) Prepaid Adv. Exp. | 8,750 | 1,250 | ||||
To Salaries | 3,800 | |||||
(+) O/s Salaries | 300 | 4,100 | ||||
To Rent | 1,500 | |||||
(+) O/s Rent | 800 | 2,300 | ||||
To Depreciation on: | ||||||
Furniture | 1,800 | |||||
Factory Building | 2,500 | 4,300 | ||||
To Loss due to Theft | 8,000 | |||||
To Net Profit Transferred to Capital A/c: | ||||||
Amitbhai | 56,043 | |||||
Narendrabhai | 56,043 | 1,12,086 | ||||
1,35,836 | 1,35,836 |
Balance Sheet as on 31st March 2019
Liabilities | Amount ₹ | Amount ₹ | Assets | Amount ₹ | Amount ₹ |
Capital Account: | Plant & Machinery | 2,80,000 | |||
Amit bhai: | Factory Building | 75,000 | |||
Opening Balance | 3,50,000 | (-) Depreciation | 2,500 | 72,500 | |
(+) Net Profit | 56,043 | Furniture | 1,95,800 | ||
(-) Drawings | 2,400 | 4,03,643 | (-) Depreciation | 1,800 | 1,94,000 |
Narendra bhai: | Closing Stock | 43,000 | |||
Opening Balance | 3,00,000 | Sundry Debtors | 28,700 | ||
(+) Net Profit | 56,043 | (-) B.D. (New) | 500 | ||
(-) Drawings | 3,200 | 3,52,843 | 28,200 | ||
Bills Payable | 8,500 | (-) R.D.D. (New) | 564 | 27,636 | |
Creditors | 38,500 | 10 % Govt. Bond | 40,000 | ||
Bank Loan | 15,000 | O/s Interest on Govt. Bond | 2,000 | ||
O/s expenses: | Cash in Hand | 20,000 | |||
Rent | 800 | Cash at Bank | 70,000 | ||
Salaries | 300 | 1,100 | Prepaid Advertisement Expense | 8,750 | |
Bills Receivable | 20,700 | ||||
Freehold property | 41,000 | ||||
8,19,586 | 8,19,586 |
Notes :
(1) Import duty and Motive power are recorded in the Trading A/c.
(2) 10% govt. bond is an investment. It was purchased on 1.10.2018.
∴ Interest is calculated for six months.
Interest on Govt. Bond = `40,000 × 6/12 × 10/100` = ₹ 2,000
(3) Adv. exp. paid for 2 years from 01.01.2019. Up to 31.3.2019, 3 months adv. exp. is written off to Profit and Loss A/c. It is calculated as below:
`10,000 × 3/24` = ₹ 1,250
Prepaid adv. exp. = 10,000 – 1,250 = ₹ 8,750
APPEARS IN
संबंधित प्रश्न
Select the most appropriate alternative from those given below and rewrite the statement.
Return outward are deducted from __________________.
Write a short note on E-Commerce ?
Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint Venture to purchase and sale goods and agreed to share profit and losses in the proportion of 4 : 1 respectively.
Rokadimal paid Rs 11,500 for carriage.
Rokadimal discounted this bill with the bank for Rs 92,000.
Gunjal paid Rs 13,500 got advertisement.
Gunjal paid Rs 7,000 for selling expenses and he is entitled for a commission on sales at 5% Co-venturers settled their accounts.
Write the word/phrase/term, which can substitute the following sentence.
Debit balance of Trading Account.
Write the word/phrase/term, which can substitute the following sentence.
Credit balance of Profit and Loss Account.
Mohini and Rohini are in partnership firm sharing profits and losses equally. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2010
Particulars | Debit Amount Rs. | Credit Amount Rs |
Partner’s Capital A/c- | ||
Mohini | 120000 | |
Rohini | 90000 | |
Purchases and Sales | 220000 | 430000 |
Sundry Debtors and Creditors | 45000 | 35000 |
Bills Receivable and Bills Payable | 45000 | 50000 |
Discount | 4000 | 3500 |
Opening stock | 25000 | |
Wages and Salaries | 23000 | |
Manufacturing Expenses | 9,000 | |
Factory Insurances |
5,000 |
|
Factory Building | 1,40,000 | |
Plant and Machinery |
75,000 |
|
Advertisement (for 2years w.e.f. 1st Jan. 2010) | 10,000 | |
Salaries and Wages |
45,000 |
|
Warehouse rent |
6,000 |
|
Import duty |
11,500 |
|
Cash in hand | 5,000 | |
10% Government Bond (Purchased on 1st July 2009) | 60000 | |
728500 | 728500 |
Adjustments:
1) Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.
2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.
3) Depreciate Machinery at 10% p.a.
4) Outstanding Wages were Rs 2,500.
5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.
6) Maintain R.D.D at 5% on Sundry Debtors.
Following is the Balance sheet of Harsha and Versha's firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.
Balance sheet as on 31st March, 2016
Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
Capital A/c: | Land & building | 2,00,000 | |
Harsha | 2,80,000 | Furniture | 76,000 |
Varsha | 2,80,000 | Sundry debtors | 3,00,000 |
Sundry creditors | 4,00,000 | Stock | 1,60,000 |
Cash at bank | 2,24,000 | ||
9,60,000 | 9,60,000 |
They decided to admit Asha on 1st April, 2016, into partnership on the following terms:
1) Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
2) She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
3) land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
4) A provision of 5% on debetors to be made for doubtful debts.
5) The stock is to be taken at a value of Rs. 2,00,000.
6) The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.
Prepare :
Profit and Loss Adjustment Account, Partner's Capital Account and new Balance Sheet of the firm.
Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:
Balance sheet as on 31st March 2016
Liabilities | Amt(Rs) | Amt(Rs) | Assets | Amt(Rs) | Amt(Rs) |
Capital A/cs: | Building | 1,00,000 | |||
Darshan | 96,000 | Furniture | 20,000 | ||
Amar | 64,000 | 1,60,000 | Equipments | 10,000 | |
General reserve | 18,000 | Debtors | 63,000 | ||
Profit and Loss A/c | 6,000 | Less: R.D.D | 3,000 | 60,000 | |
Creditors | 80,000 | Stock | 84,000 | ||
Pawans loan A/c | 26,000 | Cash | 16,000 | ||
2,90,000 | 2,90,000 |
On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.
(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.
Prepare:
(1) Revaluation A/c
(2) Capital A/cs of partners and
(3) Balance sheet of the new firm
Write the word/phrase/term, which can substitute the following sentence.
The accounts that are prepared at the end of each accounting year.
State whether the following statement is True or False with reasons.
Profit and Loss Account is a Real Account.
State whether the following statement is True or False with reasons.
Prepaid expenses are treated as liabilities.
State whether the following statement is True or False with reasons.
Wages paid for the installation of Machinery is a Revenue expenditure.
State whether the following statement is True or False with reasons.
Income received in advance is a liability.
State whether the following statement is True or False with reasons.
R.D.D. is created on Creditors.
State whether the following statement is True or False with reasons.
Goodwill is an intangible asset.
State whether the following statement is True or False with reasons.
Indirect expenses are debited to Trading Account.
State whether the following statement is True or False with reasons.
Net profit is a debit balance of Profit and Loss Account.
Find odd one.
Find odd one
Find odd one.
Cash receipts which are recurring in nature are called as__________ Receipts.
Assets which are held in the business for a long period are called ______.
Answer in one sentence only.
As per which principle of accounting, closing stock is valued at cost price or at market price whichever is less?
Answer in one sentence only.
Why partners capital is treated as long-term liability of business?
Do you agree/disagree with the following statement:
Profit and Loss Account reflects the true Financial position.
Do you agree/disagree with the following statement:
Amount borrowed by partner from his business will be debited to Current Account.
Do you agree/disagree with the following statement:
Gross profit is an operation profit.
Do you agree/disagree with the following statement:
Free distribution of goods is debited to the trading account.
From the following Trial Balance and adjustments given below of Reena and Aarti, 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
Debit Balance | Amount ₹ | Credit Balance | Amount ₹ |
Purchases | 35,500 | Sales | 58,200 |
Sundry Debtors | 40,000 | Sundry Creditors | 25,700 |
Sales Returns | 1,000 | Purchases Returns | 500 |
Opening Stock | 18,100 | R.D.D | 800 |
Bad debts | 500 | Discount | 50 |
Land and Building | 25,000 | Commission | 250 |
Furniture | 20,000 | Capital: | |
Discount | 1,000 | Reena | 50,000 |
Royalties | 700 | Aarti | 30,000 |
Rent | 1,900 | ||
Salaries | 3,000 | ||
Wages | 800 | ||
Insurance | 1,500 | ||
Drawings: | |||
Reena | 2,000 | ||
Aarti | 1,000 | ||
Cash at Bank | 11,500 | ||
Cash in Hand | 2,000 | ||
1,65,500 | 1,65,500 |
Adjustments :
- Closing Stock valued at ₹ 22,000.
- Write off ₹ 900 for Bad and doubtful debts and create a provision for Reserve for doubtful debts ₹ 1,000.
- Create a provision for Discount on Debtors @ 3% and creditors @ 5%.
- Outstanding Expenses - Wages ₹ 700 and Salaries ₹ 800.
- Insurance is paid for 15 months, w.e.f. 1st April 2018
- Depreciate Land and Building @ 5%
- Reena & Aarti are Sharing Profits & Losses in their Capital Ratio.
From the following Trial Balance of M/S Meera and Madhav. 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
Debit Balance |
Amount ₹ |
Credit Balance |
Amount ₹ |
Stock (1/4/2018) |
25,000 |
Bank overdraft |
5,000 |
Debtors |
80,500 |
Bills Payable |
12,500 |
Bills Receivable |
10,000 |
Creditors |
68,000 |
Purchases |
2,08,500 |
Sales |
3,25,000 |
Returns |
1,000 |
Outstanding Rent |
2,000 |
Carriage Inward |
3,000 |
Unpaid Wages |
1,500 |
Carriage Outwards |
4,500 |
Capital : |
|
Motor Vehicle |
55,000 |
Meera |
75,000 |
General Expenses |
1,800 |
Madhav |
75,000 |
Export Duty |
900 |
Purchase Return |
1000 |
Advertisement |
4,800 |
||
(For 3 years from 1/10/2018) |
|||
Printing & Stationery |
1,200 |
||
Drawings : |
|||
Meera |
3,500 |
||
Madhav |
2,000 |
||
Leasehold Premises |
1,10,000 |
||
Cash at Bank |
45,000 |
||
Furniture |
8,300 |
||
5,65,000 |
5,65,000 |
Adjustments :
1) Closing Stock is valued at ₹32,000.
2) Provide Provision for Doubtful Debts ₹ 2,000.
3) Create reserve for Discount on Debtors @ 3%.
4) Valued of Leasehold Premises on 31st March 2019 ₹1,00,000.
5) Outstanding Expenses Printing & Stationary ₹500.
Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account for the year 31st March 2019. You have to find out Gross Profit and Net Profit only.
Trial Balance as on 31st March 2019
Debit Balance |
Amount ₹ |
Credit Balance |
Amount ₹ |
Stock (1/4/2018) |
8,700 |
Sales |
68,000 |
Purchases |
18,300 |
Dividend |
2,000 |
Wages |
1,000 |
Purchases Return |
500 |
Insurance |
800 |
Sundry Creditors |
13,000 |
Unproductive Wages |
1,400 |
10% Bank Loan (w.e.f. 1/7/2018) |
8,000 |
Warehouse Rent |
600 |
||
Carriage Outward |
1,200 |
Other Receipts |
1,000 |
Sales Return |
600 |
||
Export Duty |
1,400 |
||
Customs Duty |
800 |
||
Sundry Debtors |
40,000 |
||
Investments |
15,700 |
||
Factory Rent |
1,600 |
||
Postage & Telegram |
400 |
||
92,500 |
92,500 |
Adjustments:
1) The Closing Stock is valued at ₹ 15,400.
2) Outstanding Wages ₹ 500.
3) Create provision for Bad debts ₹ 800 and maintain R.D.D. 3% on Sundry Debtors.
4) Goods of ₹ 1,800 distributed as a free sample.
5) Goods of ₹ 2,000 were sold and delivered on 31st March 2019 but no entry is passed in the Books of Account.
Nana and Nani are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments in Profit & Loss A/c and Balance Sheet with the help of the following information.
Trial Balance as on 31st March 2019
Debit Balance | Amount ₹ | Credit Balance | Amount ₹ |
Insurance | 15,000 | Capital A/c | |
Land and building | 50,000 | Nana | 50,000 |
(Addition of 20,000 w.e.f 1st July 2018) | Nani | 50,000 | |
Salaries | 5,000 | 10% Bank loan taken on 1st Oct. 2018 | 30,000 |
Export Duty | 2,500 | Interest | 1,500 |
Interest | 1,000 | Bills Payable | 8,000 |
Furniture | 40,000 | ||
Debtors | 26,000 | ||
1,39,500 | 1,39,500 |
Adjustments :
1) Gross profit amounted to ₹ 34,500.
2) Insurance Paid for 15 months w.e.f. 1. 4. 2018.
3) Depreciate Land and Building at 10% p.a. and Furniture at 5% p.a.
4) Write off ₹ 1,000 for Bad Debts and maintain R.D.D at 5% on Sundry Debtors.
5) Closing Stock is valued at ₹ 34,500.
The insurance premium is paid for the year ending 1st September 2019 amounted to ₹ 1,500. Calculate prepaid insurance assuming that the year ending is 31st March 2019.
Sun and Moon are partners sharing profits and losses equally. From the following trial balance and additional information prepare trading and Profit and Loss Account for the year ended 31st march 2020 and balance sheet as on that date.
Trial Balance as on 31st March, 2020 | |||
Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
Stock (1/4/2019) | 65,000 | General Reserve | 14,500 |
Bills Receivable | 28,000 | Capital: | |
Wages and Salaries | 9,000 | Sun | 1,60,000 |
Sundry Debtors | 1,32,500 | Moon | 1,20,000 |
Bad-debts | 1,000 | Creditors | 98,000 |
Purchases | 1,48,000 | R.D.D. | 1,800 |
Motor car | 68,000 | Sales | 2,85,500 |
Machinery | 1,14,800 | Outstanding Wages | 700 |
Audit Fees | 1,200 | Purchases Returns | 4,000 |
Sales Return | 2,000 | Discount | 1,800 |
Discount | 2,300 | ||
Building | 75,000 | ||
Cash at Bank | 12,000 | ||
10% Investment | 20,000 | ||
Advertisement (Paid for 9 months) | 4,500 | ||
Royalties | 3,000 | ||
6,86,300 | 6,86,300 |
Adjustment and Additional Information:
- Closing Stock ₹ 40,000.
- Depreciate Building and Machinery @ 5% and 3% respectively.
- Bills Receivable included dishonoured bill of ₹ 3000.
- Goods worth ₹ 1000 taken by sun for personal use was not entered in the books of accounts.
- Write off ₹ 1800 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
- Goods of ₹ 6000 were sold but no entry was made in the books of accounts.
State whether the following statement is True or False with reason:
Carriage Inward is carriage on purchases.
A ______ is an Intangible Asset.
Find odd one.
Find odd one.
Complete the following Table:
Creditors | Bills Payable | Third-Party Liabilities |
16,000 | 12,000 | ? |
Find odd one.
Find the odd one:
Asha and Nirasha are partners sharing profits and losses in the ratio of 1 : 1. From the following Trial Balance and additional information, prepare Trading and Profit and Loss account for the year ended 31st March, 2023 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2023 | |||
Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
Stock (1/4/2022) | 1,30,000 | General Reserve | 29,000 |
Bills Receivable | 56,000 | Capital: | |
Wages and Salaries | 18,000 | Asha | 3,20,000 |
Sundry Debtors | 2,65,000 | Nirasha | 2,40,000 |
Bad Debts | 2,000 | Creditors | 1,96,000 |
Purchases | 2,96,000 | R.D.D. | 3,600 |
Motor Car | 1,36,000 | Sales | 5,71,000 |
Machinery | 2,29,600 | Outstanding Wages | 1,400 |
Audit Fees | 2,400 | Purchases Returns | 8,000 |
Sales Return | 4,000 | Discount | 3,600 |
Discount | 4,600 | ||
Building | 1,50,000 | ||
Cash at Bank | 24,000 | ||
10% Investment | 40,000 | ||
Advertisement (Paid for 9 months) | 9,000 | ||
Royalties | 6,000 | ||
13,72,600 | 13,72,60 |
Adjustment and Additional Information:
(1) Closing Stock ₹ 80,000.
(2) Depreciation Building and Machinery @ 5% and 3% respectively.
(3) Bills Receivable included dishonoured bill of ₹ 6,000.
(4) Goods worth ₹ 2,000 taken by Asha for personal use was not entered in the books of accounts.
(5) Write off ₹ 3,600 as Bad debts and maintain R.D.D. at 5% on Sundry Debtors.
(6) Goods of ₹ 12,000 were sold but no entry was made in the books of accounts.
Undervaluation of closing stock by 10%, closing stock was of ₹ 54,000. Find out the value of closing stock.
Do you agree or disagree with the following statements:
Bills receivable is a current asset.
Find the odd one:
Find odd one.
Find odd one.
Find the odd one.
Find odd one.