Chapter 1: Introduction to Partnership and Partnership Final Accounts
Practise Problem | Q: 5 | Page no. 58
Sucheta & 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 on that date.
Trial Balance as on 31st March 2019
Particulars | Debit ₹ | Credit ₹ |
Purchases & Sales | 65,000 | 1,85,500 |
Works Manager's Salary | 2,300 | |
Capital - Sucheta | 75,000 | |
Gayatri | 40,000 | |
Opening Stock | 18,700 | |
Debtors & Creditors | 47,500 | 35,000 |
Wages & 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:
1) Stock on 31st March 2019 was valued at ₹19,700.
2) Goods costing ₹ 3,000 distributed as a free sample.
3) Motive Power includes ₹ 500 paid for the deposit of Power Meter.
4) Depreciate Building @ 5%.
5) Write of ₹ 2,000 for Bad debts and maintain R.D.D at 3% on Debtors.
6) Bills Receivable included dishonored of Bill of ₹ 4,000.
Solution:
In the books of Sucheta and Gayatri Trading and Profit and Loss Account for the year ended on 31st March 2019
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 & 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 | ||||||
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 R.B.D.D A/c | |||||||
Bad debts (New) | 2000 | ||||||
Add: New Reserve | 1,485 | 3,485 | |||||
To Net Profit (Transferred to Capital A/cs) | |||||||
Sucheta | 58,198 | ||||||
Sucheta | 38,798 | 96,996 | |||||
1,17,550 | 1,17,550 |
Balance Sheet as on 31st March 2019
Liabilities | Amount ₹ | Amount ₹ | Assets | Amount ₹ | Amount ₹ |
Capital Account: Sucheta | Deposit Power Meter | 500 | |||
Opening Balance | 75,000 | Building | 88,000 | ||
Add: Net Profit | 58,198 | 1,33,198 | Less: Depreciation | 4,400 | 83,600 |
Capital Account: Gayatri | Debtors | 47,500 | |||
Opening Balance | 40,000 | Add: Dishonoured Bill | 4,000 | ||
Add: Net Profit | 38,798 | 78,798 | 51,500 | ||
Sucheta’s Loan | 6,150 | Less: Bad Debts (New) | 2,000 | ||
Add: O/s Int. on Loan | 369 | 6,519 | 49,500 | ||
Creditors | 35,000 | Less : R.D.D. (New) @ 3% | 1,485 | 48,015 | |
Bills Payable | 27,300 | 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:
(1) The 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 = 6150 x 6% = ₹ 369
(2) Add dishonored bill amount to debtors amount and then calculate B.D. and R.D.D.
(3) Subtract dishonored bill amount from bills receivable amount.
Balbharati Solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board.
Chapter 1: Introduction to Partnership and Partnership Final Accounts
Book-keeping and Accountancy 12th Standard
HSC Maharashtra State Board. Latest Syllabus.
Chapter 1: Introduction to Partnership and Partnership Final Accounts
Chapter 2: Accounts of ‘Not for Profit’ Concerns
Chapter 3: Reconstitution of Partnership (Admission of Partner)
Chapter 4: Reconstitution of Partnership (Retirement of Partner)
Chapter 5: Reconstitution of Partnership (Death of Partner)
Chapter 6: Dissolution of Partnership Firm
Chapter 8: Company Accounts - Issue of Shares
Chapter 9: Analysis of Financial Statements
Chapter 10: Computer In Accounting
ACCOUNTS BOARD PAPERS
HSC Accounts March 2020 Board Paper With Solution
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JULY 2015 View | PDF Download
MARCH 2016 View | PDF Download
JULY 2016 View | PDF Download
JULY 2017 View | PDF Download
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MARCH 2018 View | PDF Download
JULY 2018 View | PDF Download
MARCH 2019 View | PDF Download
MARCH 2020 View | PDF Download
ACCOUNTANCY PAPER PATTERN: New 2020, Old View | PDF Download
PROFORMA OF TRADING ACCOUNT: View | PDF Download
PROFORMA OF PROFIT & LOSS ACCOUNT: View | PDF Download
PROFORMA OF BALANCE SHEET: View | PDF Download
FINAL ACCOUNT ADJUSTMENTS: View | PDF Download
SINGLE ENTRY: View : PDF Download
FINAL ACCOUNT: View | PDF Download
BILL OF EXCHANGE: View | PDF Download
FORMAT OF BILL: View | PDF Download
ADMISSION OF A PARTNER: View | PDF Download
RETIREMENT OF PARTNER: View | PDF Download
DEATH OF PARTNER: View | PDF Download
ACCOUNTING FOR SHARES : View | PDF Download
DISSOLUTION OF PARTNERSHIP FIRM : View | PDF Download
VALUATION OF GOODWILL WITH SOLUTION: View | PDF Download
FORMAT OF FINAL ACCOUNT : View | PDF Download
INTRODUCTION TO PARTNERSHIP: View | PDF Download
DISSOLUTION OF PARTNERSHIP FIRM
VALUATION OF GOODWILL WITH SOLUTION
ACCOUNTS BOARD PAPERS WITH SOLUTION
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