Kavya and Bhavya are partners, sharing profits and losses in the ratio 3 : 2. From the following Trial Balance and adjustments, prepare: Trading and Profit and loss Account for the year ending and Balance Sheet as on that date. Trial Balance as on 31st March, 2020 Particulars Debit Amount (₹) Credit Amount (₹) Capital: Kavya 7,50,000 Bhavya 5,00,000 Sundry Debtors 2,25,000 Sundry Creditors 1,50,000 Rent (10 Months) 5,000 Opening Stock 2,67,750 Building 4,25,000 Salaries 25,000 Commission 400 475 Vehicles 1,85,000 Sales 4,20,250 Purchases 3,20,250 Wages 5,000 Office Expenses 10,000 Bank Overdraft 75,000 Goods Returns 2,750 1,750 Provident Fund Investment 4,00,000 Cash in Hand 20,000 Provident Fund Contribution 50,000 Provident Fund 1,40,000 Cash at Bank 1,00,000 Interest on P.F. Investment 21,000 Drawing: Kavya 10,000 Bhavya 7,500 Bad-debts 1,675 R.D.D. 1,850 Total 20,60,325 20,60,325 Adjustments : Closing Stock ₹ 1,80,000. Outstanding wages ₹ 1,500 and Salaries ₹ 1,000 Depreciate Vehicles @ 5% p.a. Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors. Bhavya withdrew Goods of ₹ 3,000 for her personal use.

In the Books of Kavya and Bhavya Trading & Profit & Loss Account For the year ended 31st March, 2020 Dr Cr Particulars Amount (₹) Amount (₹) Particulars Amount (₹) Amount (₹) To Opening Stock 2,67,750 By Sales 4,20,250 To Purchases 3,20,250 3,18,500 Less: Goods Return 2,750 4,17,500 Less - Goods Return 1,750 By Goods Withdraw by Bhavya for Personal Use 3,000 To Wages 5,000 6,500 By Closing Stock 1,80,000 Add: Outstanding Wages 1,500 To Gross profit c/d 7,750 6,00,500 6,00,500 To salaries 25,000 26,000 By Gross Profit b/d 7,750 Add: Outstanding 1,000 By Commission 475 To Depreciation on Vehicles 9,250 By Net Loss(Transferred to Capital A/c) To Bad Debts (Old) 1,675 13,450 Kavya 64,125 1,06,875 Add: Bad Debts (New) 2,500 Bhavya 42,750 Add: New R.D.D. 11,125 15,300 Less: R.D.D. (Old) 1,850 To Rent 5,000 6,000 Add: Outstanding Rent 1,000 To Commission 400 To Office Expenses 10,000 To Provident Fund Contribution 50,000 1,15,100 1,15,100 Balance Sheet as on 31st March, 2020 Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹) Capital: Kavya 7,50,000 6,75,875 Vehicles 1,85,000 1,75,750 Less: Net Loss 64,125 Less: Depreciation 5% 9,250 6,85,875 Sundry Debtors 2,25,000 2,11,375 Less: Drawing 10,000 Less: Bad Debts 2,500 Capital: Bhavya 5,00,000 4,46,750 2,22,500 Less - Net Loss 42,750 Less - R.D.D. 5% 11,125 4,57,250 Building 4,25,000 Less: Drawings (7,500+3,000) 10,500 Provident Fund Sundry Creditors 1,50,000 Investment 4,00,000 Outstanding Expenses Cash in hand 20,000 Wages 1,500 3,500 Cash at Bank 1,00,000 Salaries 1,000 Closing Stock 1,80,000 Rent 1,000 Bank Overdraft 75,000 Provident Fund 1,40,000 1,61,000 Add: Interest on Provident Fund Investment 21,000 15,12,125 15,12,125 Working Notes: (1) Rent (10 months) is paid i.e. 2 months rent is outstanding For 10 months → ₹ 5,000 &there4; 2 months → (?) `= (500 xx 2)/10 = ₹ 1,000` (2) Depreciation on vehicle @ 5% `= 1,85,000 xx 5/100 = ₹ 9,250` (3) New R.D.D. is calculated as follows: R.D.D. = 5% on net debtors `= 5/100 xx ("Sundry debtors" - "New bad debts")` `= 5/100 xx (2,25,000 - 2,500)` `= 5/100 xx 2,22,500` = ₹ 11,125

Kavya and Bhavya are partners, sharing profits and losses in the ratio 3 : 2. Trading and Profit and loss Account for the year ending and Balance Sheet as on that date - Book Keeping and Accountancy

Question

Kavya and Bhavya are partners, sharing profits and losses in the ratio 3 : 2. From the following Trial Balance and adjustments, prepare: Trading and Profit and loss Account for the year ending and Balance Sheet as on that date.

Trial Balance as on 31st March, 2020
Particulars	Debit Amount (₹)	Credit Amount (₹)
Capital:
Kavya		7,50,000
Bhavya		5,00,000
Sundry Debtors	2,25,000
Sundry Creditors		1,50,000
Rent (10 Months)	5,000
Opening Stock	2,67,750
Building	4,25,000
Salaries	25,000
Commission	400	475
Vehicles	1,85,000
Sales		4,20,250
Purchases	3,20,250
Wages	5,000
Office Expenses	10,000
Bank Overdraft		75,000
Goods Returns	2,750	1,750
Provident Fund Investment	4,00,000
Cash in Hand	20,000
Provident Fund Contribution	50,000
Provident Fund		1,40,000
Cash at Bank	1,00,000
Interest on P.F. Investment		21,000
Drawing:
Kavya	10,000
Bhavya	7,500
Bad-debts	1,675
R.D.D.		1,850
Total	20,60,325	20,60,325

Adjustments :

Closing Stock ₹ 1,80,000.
Outstanding wages ₹ 1,500 and Salaries ₹ 1,000
Depreciate Vehicles @ 5% p.a.
Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors.
Bhavya withdrew Goods of ₹ 3,000 for her personal use.

Ledger

Solution

In the Books of Kavya and Bhavya
Trading & Profit & Loss Account For the year ended 31st March, 2020
Dr			Cr
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Opening Stock		2,67,750	By Sales	4,20,250
To Purchases	3,20,250	3,18,500	Less: Goods Return	2,750	4,17,500
Less - Goods Return	1,750	3,18,500	By Goods Withdraw by Bhavya for Personal Use		3,000
To Wages	5,000	6,500	By Closing Stock		1,80,000
Add: Outstanding Wages	1,500	6,500
To Gross profit c/d		7,750
		6,00,500			6,00,500
To salaries	25,000	26,000	By Gross Profit b/d		7,750
Add: Outstanding	1,000	26,000	By Commission		475
To Depreciation on Vehicles		9,250	By Net Loss (Transferred to Capital A/c)
To Bad Debts (Old)	1,675	13,450	Kavya	64,125	1,06,875
Add: Bad Debts (New)	2,500		Bhavya	42,750	1,06,875
Add: New R.D.D.	11,125
	15,300
Less: R.D.D. (Old)	1,850
To Rent	5,000	6,000
Add: Outstanding Rent	1,000	6,000
To Commission		400
To Office Expenses		10,000
To Provident Fund Contribution		50,000
		1,15,100			1,15,100

Balance Sheet as on 31st March, 2020
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital: Kavya	7,50,000	6,75,875	Vehicles	1,85,000	1,75,750
Less: Net Loss	64,125		Less: Depreciation 5%	9,250	1,75,750
	6,85,875		Sundry Debtors	2,25,000	2,11,375
Less: Drawing	10,000		Less: Bad Debts	2,500
Capital: Bhavya	5,00,000	4,46,750		2,22,500
Less - Net Loss	42,750		Less - R.D.D. 5%	11,125
	4,57,250		Building		4,25,000
Less: Drawings (7,500+3,000)	10,500		Provident Fund
Sundry Creditors		1,50,000	Investment		4,00,000
Outstanding Expenses			Cash in hand		20,000
Wages	1,500	3,500	Cash at Bank		1,00,000
Salaries	1,000		Closing Stock		1,80,000
Rent	1,000
Bank Overdraft		75,000
Provident Fund	1,40,000	1,61,000
Add: Interest on Provident Fund Investment	21,000	1,61,000
		15,12,125			15,12,125

Working Notes:

(1) Rent (10 months) is paid i.e. 2 months rent is outstanding

For 10 months → ₹ 5,000

∴ 2 months → (?)

`= (500 xx 2)/10 = ₹ 1,000`

(2) Depreciation on vehicle @ 5%

`= 1,85,000 xx 5/100 = ₹ 9,250`

(3) New R.D.D. is calculated as follows:

R.D.D. = 5% on net debtors

`= 5/100 xx ("Sundry debtors" - "New bad debts")`

`= 5/100 xx (2,25,000 - 2,500)`

`= 5/100 xx 2,22,500`

= ₹ 11,125

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Partnership Final Accounts

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Surekha and Sangita decided to undertake a venture jointly. They agreed to share profits and losses in the ratio of 3 : 2. Surekha supplied from her own stock goods worth Rs. 4,00,000 and paid Rs. 9,900 for freight and Rs. 2,400 for insurance. Sangita purchased goods of Rs. 3,90,000 for the venture and paid Rs 14,000 for selling expenses. Sangita accepted a bill for 3 months of Rs. 1,90,000 drawn by Surekha as an advance. The bill was discounted immediately by Surekha for Rs. 1,84,000 and the amount of discount was charged to Joint Venture Account. Sangita sold all the goods for Rs. 10,00,000. At end of the venture, the accounts were settled. Give journal entries in the books of Surekha.

Given below is the Trial Balance of M/s Seeta and Geeta as on 31^st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31^st March, 2010 and Balance Sheet on that date.

Trial Balance as on 31^st March, 2010

Debit Balance	Amount (Rs)	Credit Balance	Amount (Rs)
Current A/c-		Capital A/c-
Geeta	4000	Seeta	120000
Opening stock	88,000	Geeta	120000
Purchases	1,76,000	Current A/c- Seeta	5000
Wages	23,500	Sundry Creditors	103000
Salaries	15,000	Bank overdraft	60000
Office Expenses	8000	Sales	308000
Bank Charges	2600
Legal Charges	3000
Machinery	90000
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Interest	3600
Export Duty	3800
Bad -Debts	4000
Sundry Debtors	82000
Travelling Expenses	3200
Electricity charges	2300
Furniture	37000
8% Debentures (Purchased on 1.10.2009)	40000
	716000		716000

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 80,000.

2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000.

3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400.

4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.

5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.

6) Legal charges paid in advance Rs 1,200.

7) Provide interest on capital at 8% p.a.

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Trial Balance as on 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Building	400000	Capital A/cs-
Plant and Machinery	120000	Madhuri	300000
Purchases	650000	Minakshi	200000
Carriage	7000	Sales	810000
Opening stock	90000	Sundry Creditors	100000
Wages	35000	Outstanding salaries	4200
Sundry Debtors	150000	8% Bank loan (Taken on 1.10.2011 )	100000
Salaries	28000
Postage and Telegram	4000
Insurance	5000
Bad debts	3000
Rent	4000
Discount	3200
Drawing A/c-
Madhuri	10000
Minakshi	5000
	1514200		1514200

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 1,10,000.

2) Depreciate Plant and Machinery at 10% p.a. and Building at 5% p.a.

3) Prepaid Insurance Rs 1,500.

4) Create R.D.D at 5% on Sundry Debtors.

5) Partners are allowed interest at 5% p.a. on their capitals.

6) Salaries include Rs 2,500 as advance to workers.

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.

From the following Trial Balance of M/s Sanjay and Vijay, 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 after taking into consideration the adjustments given below.

Trial Balance as on 31^st March, 2013

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Salaries and wages	12000	Sales	110000
Postage and Telegram	1,750	Sundry Creditors	72700
Opening Stock	23,500	Bills Payable	40000
Plant and Machinery	70,000	10% Bank loan (Taken on 1st Oct 2012)	60000
Advertisement	5,000	Outstanding Audit fees	5900
Import duty	2,100	Capital A/c-
Bad debts	1000	Sanjay	45000
Purchases	98500	Vijay	45000
Sundry Debtors	45800
Bills Receivable	16700
Carriage outward	1800
Wages and stationery (Note 2)	14000
Printing and stationery	4600
Cash in hand	1850
Leasehold Premises	80000
	378600		378600

Adjustments:
1) Closing stock was valued at Rs 30,000.

2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.

3) Goods of Rs 2,500 distributed as free samples.

4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.

5) Depreciate Plant and Machinery at 10% p.a.

6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.

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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
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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.

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Balance Sheet as on 31st March, 2013.

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital Accounts		Building	10000
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Kavita	8000	Debtors	5000
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Reserve fund	4000	Cash	6600
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(2) Partner’s capital account, and

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