Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as of that date. Trial Balance as on 31st March 2019 Particulars Debit ₹ Credit ₹ Purchases and Sales 65,000 1,85,500 Works Manager's Salary 2,300 Capital: - Sucheta 75,000 - Gayatri 40,000 Opening Stock 18,700 Debtors and Creditors 47,500 35,000 Wages and Salaries 4,000 Bills Receivable 22,000 Bills Payable 27,300 Discount 400 Motive Power 1,350 Custom duty 1,500 Interest 1,300 Unproductive Wages 3,000 Audit fees 2,500 Rent 1,800 Conveyance 2,000 Goodwill 25,000 Copyrights 20,000 Building 88,000 Partner (Sucheta's) Loan 6,150 Investments 40,000 Cash at Bank 26,000 3,70,650 3,70,650 Adjustments: Stock on 31st March 2019 was valued at ₹ 19,700. Goods costing ₹ 3,000 distributed as a free sample. Motive Power includes ₹ 500 paid for the deposit of the Power Meter. Depreciate Building @ 5%. Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors. Bills Receivable included dishonored of Bill of ₹ 4,000.

In the books of Sucheta and Gayatri Dr. Trading A/c for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Opening Stock 18,700 By Sales 1,85,500 To Purchase 65,000 By Goods Distributed as Free sample 3,000 To Works Manager’s Salary 2,300 By Closing Stock 19,700 To Wages and Salaries 4,000 To Motive Power 1,350 Less: Deposit for Power Meter 500 850 To Custom Duty 1,500 To Gross Profit c/d 1,15,850 2,08,200 2,08,200 Dr. Profit and Loss Account for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ To Unproductive Wages 3,000 By Gross Profit b/d 1,15,850 To Audit Fees 2,500 By Discount 400 To Rent 1,800 By Interest 1,300 To Conveyance 2,000 To O/s Interest on Sucheta's Loan 369 To Advertisement Expenses (Goods distributed as samples) 3,000 To Depreciation on Building 4,400 To Bad debts Nil Add: New Bad debts 2000 Add: New R.D.D 1,485 3,485 To Net Profit (Transferred to Capital A/cs) Sucheta 58,198 Gayatri 38,798 96,996 1,17,550 1,17,550 Dr. Capital Account for the year ended on 31st March 2019 Cr. Particulars Amount ₹ Amount ₹ Particulars Amount ₹ Amount ₹ By Balance b/d 75,000 40,000 To balance c/d 1,33,198 78,798 By Net Profit 58,198 38,798 1,33,198 78,798 1,33,198 78,798 Balance Sheet as on 31st March 2019 Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹ Capital A/c: Deposit Power Meter 500 Sucheta 1,33,198 Building 88,000 Gayatri 78,798 2,11,996 Less: Depreciation 4,400 83,600 Sucheta’s Loan 6,150 Debtors 47,500 Add: O/s Interest on Sucheta's Loan 369 6,519 Creditors 35,000 Add: Dishonoured Bill 4,000 Bills Payable 27,300 51,500 Less: New Bad Debts 2,000 49,500 Less: New R.D.D. 1,485 48,015 Bills Receivable 22,000 Less: Dishonoured Bill 4,000 18,000 Goodwill 25,000 Copy Rights 20,000 Investments 40,000 Closing Stock 19,700 Cash at Bank 26,000 2,80,815 2,80,815 Working Notes: Add dishonored bill amount to debtors amount and then calculate B.D. and R.D.D. Subtract dishonoured bill amount from bills receivable amount. Rate of interest on the partner’s loan is not mentioned; therefore, interest on the loan is calculated at 6% p.a.&there4; Interest on Sucheta’s Loan = `6,150 xx 1 xx 6/100` = ₹ 369

Sucheta and Gayatri are Partners sharing Profit and Losses in the ratio 3:2. From the following Trial Balance you are required to prepare Trading and Profit and Loss Account for the year ended - Book Keeping and Accountancy

Question

Sucheta and Gayatri are Partners sharing Profit and Loss in the ratio 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and Profit and Loss Account for the year ended 31^st March 2019 and Balance Sheet as of that date.

Trial Balance as on 31^s^t March 2019

Particulars	Debit ₹	Credit ₹
Purchases and Sales	65,000	1,85,500
Works Manager's Salary	2,300
Capital:
- Sucheta		75,000
- Gayatri		40,000
Opening Stock	18,700
Debtors and Creditors	47,500	35,000
Wages and Salaries	4,000
Bills Receivable	22,000
Bills Payable		27,300
Discount		400
Motive Power	1,350
Custom duty	1,500
Interest		1,300
Unproductive Wages	3,000
Audit fees	2,500
Rent	1,800
Conveyance	2,000
Goodwill	25,000
Copyrights	20,000
Building	88,000
Partner (Sucheta's) Loan		6,150
Investments	40,000
Cash at Bank	26,000
	3,70,650	3,70,650

Adjustments:

Stock on 31st March 2019 was valued at ₹ 19,700.
Goods costing ₹ 3,000 distributed as a free sample.
Motive Power includes ₹ 500 paid for the deposit of the Power Meter.
Depreciate Building @ 5%.
Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors.
Bills Receivable included dishonored of Bill of ₹ 4,000.

Ledger

Solution

In the books of Sucheta and Gayatri

Dr.	Trading A/c for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Opening Stock			18,700	By Sales		1,85,500
To Purchase			65,000	By Goods Distributed as Free sample		3,000
To Works Manager’s Salary			2,300	By Closing Stock		19,700
To Wages and Salaries			4,000
To Motive Power		1,350
Less: Deposit for Power Meter		500	850
To Custom Duty			1,500
To Gross Profit c/d			1,15,850
			2,08,200			2,08,200

Dr.	Profit and Loss Account for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
To Unproductive Wages			3,000	By Gross Profit b/d		1,15,850
To Audit Fees			2,500	By Discount		400
To Rent			1,800	By Interest		1,300
To Conveyance			2,000
To O/s Interest on Sucheta's Loan			369
To Advertisement Expenses (Goods distributed as samples)			3,000
To Depreciation on Building			4,400
To Bad debts		Nil
Add: New Bad debts		2000
Add: New R.D.D		1,485	3,485
To Net Profit (Transferred to Capital A/cs)
Sucheta		58,198
Gayatri		38,798	96,996
			1,17,550			1,17,550

Dr.	Capital Account for the year ended on 31^st March 2019						Cr.
Particulars		Amount ₹	Amount ₹	Particulars	Amount ₹	Amount ₹
				By Balance b/d	75,000	40,000
To balance c/d		1,33,198	78,798	By Net Profit	58,198	38,798

		1,33,198	78,798		1,33,198	78,798

Balance Sheet as on 31^st March 2019

Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Capital A/c:			Deposit Power Meter		500
Sucheta	1,33,198		Building	88,000
Gayatri	78,798	2,11,996	Less: Depreciation	4,400	83,600
Sucheta’s Loan	6,150		Debtors	47,500
Add: O/s Interest on Sucheta's Loan	369	6,519
Creditors		35,000	Add: Dishonoured Bill	4,000
Bills Payable		27,300		51,500
			Less: New Bad Debts	2,000
				49,500
			Less: New R.D.D.	1,485	48,015
			Bills Receivable	22,000
			Less: Dishonoured Bill	4,000	18,000
			Goodwill		25,000
			Copy Rights		20,000
			Investments		40,000
			Closing Stock		19,700
			Cash at Bank		26,000
		2,80,815			2,80,815

Working Notes:

Add dishonored bill amount to debtors amount and then calculate B.D. and R.D.D.
Subtract dishonoured bill amount from bills receivable amount.
Rate of interest on the partner’s loan is not mentioned; therefore, interest on the loan is calculated at 6% p.a.
∴ Interest on Sucheta’s Loan = `6,150 xx 1 xx 6/100` = ₹ 369

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Partnership Final Accounts

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Q 5.Q 4.Q 6.

Chapter 1: Introduction to Partnership and Partnership Final Accounts - Exercise 1.2 (Practical Problems) [Page 58]

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Balbharati Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board

Chapter 1 Introduction to Partnership and Partnership Final Accounts
Exercise 1.2 (Practical Problems) | Q 5. | Page 58

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From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date

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
Bills Receivable and payable	5000	6000
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Wages	9900
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Plant and Machinery	40700
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Bad debts	400
Prepaid Rent	7000
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Adjustments:

1) The closing stock is valued at Rs 31,000.

2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800.

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4) Insurance at Rs 500 is paid in advance.

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Rohan and Roshan are partners in ‘Shan Traders’ sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date

Trial Balance as on 31st March, 2011
Particulars	Amount (₹)	Particulars	Amount (₹)
Opening stock	32,000	Sales	1,93,500
Purchases	64,000	Sundry Creditors	15,000
Plant and Machinery	30,000	Unpaid Wages	1,500
Furniture	18,500	Return outward	2,500
Carriage	1,500	Capital A/c:
Wages and Salaries	35,000	Rohan	90,000
Bills Receivable	5,000	Roshan	50,000
Sundry Debtors	32,000
Conveyance	4,000
Rent, Rates and Taxes	2,000
Return Inward	3,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
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Adjustments:

Closing stock: Cost price Rs 25,000 and market price Rs 30,000.
An amount of Rs 3,500 spent for repairs to Building is debited to Building account.
Depreciate plant and Machinery and Building at 5% p.a.
Goods of Rs 750 taken by Roshan for this personal use.
Included in wages advances given to workers Rs 3,000.
Provide Rs 1,500 for bad and doubtful debts on Debtors.

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
Land and building	130000
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.

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.

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.

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.

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