From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below. Trial Balance as on 31st March, 2020 Debit Balance Debit (₹) Credit (₹) Stock (1/4/2018) 48,000 Capital - Riddhi 50,000 Siddhi 30,000 Purchases 22,500 Wages 800 Carriage Inward 1,000 Sundry Creditors 27,600 Bills Payable 20,000 Cash in hand 2,850 Insurance 1,200 Sundry Debtors 32,000 Bank Overdraft 18,000 Carriage outward 900 Land and Building 42,500 Furniture 38,700 Sales 47,000 Purchase Return 500 Sales Return 400 Rent 1,800 Bad-debts 300 R.D.D 350 Discount 700 1,000 Travelling Expenses 250 Advertisements 4,150 1,96,250 1,96,250 Adjustments: Closing stock ₹ 48,700. Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200. Depreciate Land and Building by 10% and Furniture by 5%. Insurance Paid in Advance ₹ 300. Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

Dr. In the Books of Riddhi and SiddhiTrading and Profit and Loss A/cfor the year ended 31st March 2020 Cr. Particulars Amount (₹) Particulars Amount (₹) To Opening Stock 48,000 By Sales 47,000 46,600 To Purchases 22,500 22,000 Less: Sales Return 400 Less: Purchase Return 500 By Closing Stock 48,700 To Wages 800 1,500 By Good destroyed by fire 3,000 Add: OutstandingWages 700 To Carriage Inward 1,000 To Gross Profit c/d 25,800 98,300 98,300 To Insurance 1,200 900 By Gross Profit b/d 25,800 Less: Prepaid 300 By Rent 1,800 To Depreciation on : By R.D.D (Old) 350 50 Land & Building 4,250 6,185 Less: Bad-debts (New) 300 Furniture 1,935 By Discount 1,000 To Travelling Expenses 250 450 Add: Outstanding 200 To Loss by fire 3,000 To Carriage Outward 900 To Discount 700 To Advertisement 4,150 To Net Profit Transferred to Capital A/c Riddhi 6,183 12,365 Siddhi 6,182 28,650 28,650 Balance Sheet as on 31st March, 2020 Liabilities Amount (₹) Assets Amount (₹) Capital A/c: 56,183 Land & Building 42,500 38,250 Riddhi 50,000 Less: Depreciation 10% 4,250 Add: Net Profit 6,183 Furniture 38,700 36,765 Capital A/c: 36,182 Less: Depreciation 5% 1,935 Siddhi 30,000 Prepaid Insurance 300 Add: Net Profit 6,182 Cash in hand 2,850 Sundry Creditors 27,600 Sundry Debtors 32,000 Outstanding Expenses: Closing Stock 48,700 Wages 700 900 Travelling 200 Bill Payable 20,000 Bank Overdraft 18,000 1,58,865 1,58,865

From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2020 - Book Keeping and Accountancy

Question

From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below.

Trial Balance as on 31st March, 2020
Debit Balance	Debit (₹)	Credit (₹)
Stock (1/4/2018)	48,000
Capital - Riddhi		50,000
Siddhi		30,000
Purchases	22,500
Wages	800
Carriage Inward	1,000
Sundry Creditors		27,600
Bills Payable		20,000
Cash in hand	2,850
Insurance	1,200
Sundry Debtors	32,000
Bank Overdraft		18,000
Carriage outward	900
Land and Building	42,500
Furniture	38,700
Sales		47,000
Purchase Return		500
Sales Return	400
Rent		1,800
Bad-debts	300
R.D.D		350
Discount	700	1,000
Travelling Expenses	250
Advertisements	4,150
	1,96,250	1,96,250

Adjustments:

Closing stock ₹ 48,700.
Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200.
Depreciate Land and Building by 10% and Furniture by 5%.
Insurance Paid in Advance ₹ 300.
Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

Ledger

Solution

Dr.	In the Books of Riddhi and Siddhi Trading and Profit and Loss A/c for the year ended 31st March 2020				Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
To Opening Stock		48,000	By Sales	47,000	46,600
To Purchases	22,500	22,000	Less: Sales Return	400	46,600
Less: Purchase Return	500	22,000	By Closing Stock		48,700
To Wages	800	1,500	By Good destroyed by fire		3,000
Add: Outstanding Wages	700	1,500
To Carriage Inward		1,000
To Gross Profit c/d		25,800
		98,300			98,300
To Insurance	1,200	900	By Gross Profit b/d		25,800
Less: Prepaid	300	900	By Rent		1,800
To Depreciation on :			By R.D.D (Old)	350	50
Land & Building	4,250	6,185	Less: Bad-debts (New)	300	50
Furniture	1,935	6,185	By Discount		1,000
To Travelling Expenses	250	450
Add: Outstanding	200	450
To Loss by fire		3,000
To Carriage Outward		900
To Discount		700
To Advertisement		4,150
To Net Profit Transferred to Capital A/c
Riddhi	6,183	12,365
Siddhi	6,182	12,365
		28,650			28,650

Balance Sheet as on 31st March, 2020
Liabilities		Amount (₹)	Assets		Amount (₹)
Capital A/c:		56,183	Land & Building	42,500	38,250
Riddhi	50,000		Less: Depreciation 10%	4,250	38,250
Add: Net Profit	6,183		Furniture	38,700	36,765
Capital A/c:		36,182	Less: Depreciation 5%	1,935	36,765
Siddhi	30,000		Prepaid Insurance		300
Add: Net Profit	6,182		Cash in hand		2,850
Sundry Creditors		27,600	Sundry Debtors		32,000
Outstanding Expenses:			Closing Stock		48,700
Wages	700	900
Travelling	200	900
Bill Payable		20,000
Bank Overdraft		18,000
		1,58,865			1,58,865

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RELATED QUESTIONS

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
Drawings:
Sanjay	2,000
Sudhir	3,000
Cash in hand	5,500
Rent	10,000
Power and Fuel	3,000
	1,87,500		1,87,500

Adjustments:

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

2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.

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.

From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.

Given below is the Trial Balance of M/s Roma and Mona partnership firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date

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.

4) Provide reserve for discount on debtors at 2% and on creditors at 3%.

5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.

6) Depreciate Motor Vehicle at 5% p.a.

From the following Trial Balance of M/s Mahesh and Umesh, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date. Profit sharing ratio of Mahesh and Umesh was 3/5th and 2/5th respectively.

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.

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 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.

Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2: 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date:
Trial Balance as on 31st March 2016

Particulars	Debit Amount (Rs.)	Credit Amount (Rs.)
Prepaid insurance	3,200
Insurance	8,000
R.D.D.		4,000
Discount	3,200
Postage and telephone	12,800
Debtors and creditors	2,64,000	2,72,000
Salaries	2,24,000
Wages	96,000
Opening stock	1,92,200
Carriage	4,000
Purchased and sales	7,72,800	12,06,400
Return inward/Outward	22,400	36,800
Bank Overdraft		4,83,200
Plant and Machinery	96,000
Land and Building	7,04,000
Partner's Capital accounts :
Ashok		2,08,000
Sangmesh		1,92,000
	24,02,400	24,02,400

Adjustment :
(1) Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
(2) Goods worth Rs. 16,000 were distributed as free samples.
(3) Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
(4) The salaries were outstanding at Rs. 8,000.
(5) Depreciation : Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.

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

Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below :
Balance Sheet as on 31st March, 2013.

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital Accounts		Building	10000
Anita	11000	Machinery	10700
Sunita	15000	Furniture	10000
Kavita	8000	Debtors	5000
Creditors	10000	Stock	6600
Reserve fund	4000	Cash	6600
	48900		48900

On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms :

(1) Goodwill of the firm is to be valued at Rs. 4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.

(2) Assets to be revalued as under:

Stock Rs. 6,300; Machinery Rs. 10,000; Furniture Rs. 10,200.

(3) R.D.D. to be maintained at 10% on debtors.

(4) Rs. 100 to be written off from creditors.

(5) The amount payable to Mrs. Kavita is to be transferred to her loan account.

Prepare :

(1) Profit and loss adjustment account.

(2) Partner’s capital account, and

(3) Balance Sheet of new firm as on 01.04.2013.