OMTEX CLASSES MAHARASHTRA : 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

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 31^st 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