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.

Dr. In the books of M/s Meera and Madhav Trading and Profit and Loss Account for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Opening Stock 25,000 By Sales 3,25,000 To Purchase 2,08,500 Less: Sales Return 1,000 3,24,000 Less: Purchase Return 1,000 2,07,500 By Closing Stock 32,000 To Carriage Inward 3,000 To Gross Profit c/d 1,20,500 3,56,000 3,56,000 To Carriage Outward 4,500 By Gross Profit b/d 1,20,500 To General Expenses 1,800 To Export Duty 900 To Advertisement 4,800 Less: Prepaid Advt. 4,000 800 To Printing & Stationery 1,200 Add : O/s Printing & Stationery 500 1,700 To Written off Leasehold Premises 10,000 To Provision for Doubtful debts (New) 2,000 To R.D.D. (New) 2,355 To Net Profit (Transferred to Capital A/c) Meera 48,223 Madhav 48,222 96,445 1,20,500 1,20,500 Balance Sheet as on 31st March 2019 Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹ Capital Account: Meera Motor Vehicle 55,000 Opening Balance 75,000 Prepaid Advt. Expense 4,000 Add: Net Profit 48,223 Leasehold Premises 1,10,000 Less: Drawings 3,500 1,19,723 Less: Written off 10,000 1,00,000 Capital Account: Madhav Closing Stock 32,000 Opening Balance 75,000 Debtors 80,500 Add: Net Profit 48,222 Less: Provision for Doubtful Debts 2,000 Less: Drawings 2,000 1,21,222 78,500 Bank Overdraft 5,000 Less : R.D.D. (New) 2,355 76,145 Bills Payable 12,500 Bills Receivable 10,000 Creditors 68,000 Cash at Bank 45,000 O/s Rent 2,000 Furniture 8,300 Unpaid Wages 1,500 O/s Stationery & Printing 500 3,30,445 3,30,445 Working Notes: (1) Advertisement expenses written off to Profit and Loss account during the year 2018 – 19 for six months i.e from 1/10/18 to 31/03/19 Advertisement expenses W/off = (Advertisement bill paid) x`1/3xx6/12` =`4800xx1/3xx6/12` = ₹ 800 Prepaid advertisement = 4,800 – 800 = ₹ 4,000 .(2) Reserve for Discount on Debtors = 3% (Balance in debtors) = `3/100 (80,500 – 2,000)` = `3/100 xx 78,500` = ₹ 2,355. (3) The difference of opening balance (₹ 1,10,000) and closing balance (₹ 1,00,000) for leasehold premises to be considered as written off on leasehold premises.

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 - Book Keeping and Accountancy

Question

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 31^s^t 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.

Ledger

Solution

Dr.	In the books of M/s Meera and Madhav Trading and Profit and Loss Account for the year ended on 31st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Opening Stock			25,000	By Sales	3,25,000
To Purchase		2,08,500		Less: Sales Return	1,000	3,24,000
Less: Purchase Return		1,000	2,07,500	By Closing Stock		32,000
To Carriage Inward			3,000
To Gross Profit c/d			1,20,500
			3,56,000			3,56,000
To Carriage Outward			4,500	By Gross Profit b/d		1,20,500
To General Expenses			1,800
To Export Duty			900
To Advertisement		4,800
Less: Prepaid Advt.		4,000	800
To Printing & Stationery		1,200
Add : O/s Printing & Stationery		500	1,700
To Written off Leasehold Premises			10,000
To Provision for Doubtful debts (New)			2,000
To R.D.D. (New)			2,355
To Net Profit (Transferred to Capital A/c)
Meera		48,223
Madhav		48,222	96,445
			1,20,500			1,20,500

Balance Sheet as on 31st March 2019
Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital Account: Meera			Motor Vehicle		55,000
Opening Balance	75,000		Prepaid Advt. Expense		4,000
Add: Net Profit	48,223		Leasehold Premises	1,10,000
Less: Drawings	3,500	1,19,723	Less: Written off	10,000	1,00,000
Capital Account: Madhav			Closing Stock		32,000
Opening Balance	75,000		Debtors	80,500
Add: Net Profit	48,222		Less: Provision for Doubtful Debts	2,000
Less: Drawings	2,000	1,21,222		78,500
Bank Overdraft		5,000	Less : R.D.D. (New)	2,355	76,145
Bills Payable		12,500	Bills Receivable		10,000
Creditors		68,000	Cash at Bank		45,000
O/s Rent		2,000	Furniture		8,300
Unpaid Wages		1,500
O/s Stationery & Printing		500
		3,30,445			3,30,445

Working Notes:

(1) Advertisement expenses written off to Profit and Loss account during the year 2018 – 19 for six months i.e from 1/10/18 to 31/03/19

Advertisement expenses W/off

= (Advertisement bill paid) x`1/3xx6/12`

=`4800xx1/3xx6/12`

= ₹ 800

Prepaid advertisement = 4,800 – 800 = ₹ 4,000

.(2) Reserve for Discount on Debtors

= 3% (Balance in debtors)

= `3/100 (80,500 – 2,000)`

= `3/100 xx 78,500`

= ₹ 2,355.

(3) The difference of opening balance (₹ 1,10,000) and closing balance (₹ 1,00,000) for leasehold premises to be considered as written off on leasehold premises.

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Partnership Final Accounts

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Chapter 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.2 (Practical Problems) [Page 57]

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Chapter 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.2 (Practical Problems) | Q 4. | Page 57

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Trial Balance as on 31st March , 2009

Particulars	Debit Amount Rs.	Credit Amount Rs.
Capital A/c's Ajay Vijay		60000 35000
Purchases and Sales	46,700	85,000
Sundry Debtors and Creditors	28000	25000
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Wages	9900
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Insurance	1200
Plant and Machinery	40700
Furniture	18000
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Carriage	3200
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Adjustments:

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Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:

Trial Balance as on 31st March, 2010
Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Opening stock	20,000	Capital A/c's
Purchases	30,000	Sanjay	40,000
Debtors	12,000	Sudhir	30,000
Wages	5,000	Sales	70,000
Salaries	10,000	Sundry Creditors	21,000
Land and building	30,000	Bills Payable	20,000
Plant and machinery	25,000	Discount	5,000
Furniture	16,000	Outstanding Rent	1,500
Advertisement (for 2 years)	6,000
Bills Receivable	8,000
Insurance	2,000
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Cash in hand	5,500
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Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

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3) Depreciate Land and Building at 5% and Machinery at 10%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

6) Provide interest on Partners Capital at 5% p.a.

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Trial Balance as on 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Stock on 1^st April, 2011	52000	Provident fund	50000
Sundry Debtors	84000	Interest on P.F. Investment	2800
Bad debts	3000	Sundry Creditors	84000
Premises	78000	Rent received	9600
Salaries	28000	Reserve for Doubtful Debts	2000
Motor Vehicles	50000	Discount received	3600
Purchases	176000	Sales	320000
Provident Fund Investment	50,000	Capital A/c-
Provident Fund contribution	5500	Roma	50000
Wages	22000	Mona	50000
Rent (for 10 months)	16,000
Office Expenses	5,000
Discount allowed	2,500
	572000		572000

Adjustments:

1) Stock on 31st March, 2012 was valued at Rs 80,000.

2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.

3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.

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Trial Balance as on 31^st March, 2013
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Investments	56,000	Capital A/c:
Carriage	7,000	Mahesh	1,62,000
Loose Tools	17,000	Umesh	1,08,000
Building	1,50,000	Current A/c:
Salary	13,000	Mahesh	16,200
Audit fees	8,500	Umesh	10,800
Opening stock	83,000	Sundry Creditors	99,000
Wages	7,500	Sales	4,20,000
Purchases	1,97,000	Bank Overdraft	56,400
Motive Power	15,000
Bad Debts	6,400
Printing and Stationery	4000
Debtors	96,000
Cash at Bank	52,000
Machinery	72,000
Motor Van	88,000
	8,72,400		8,72,400

Adjustments:

1) Stock on hand on 31st March, 2013 was valued at Rs 76,000.

2) Interest on partner’s capital at 5% p.a. was allowed.

3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use.

4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales.

5) Rs. 2,500 due from customer is not recoverable.

6) Depreciate Motor Van at 8% p.a. and Building at 7% p.a.

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Trial Balance as on 31^st 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. 1^st 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.

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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
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(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
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