Practise Problem | Q 3 | Page 56 From the following Trial Balance and adjustments given below of Reena and Aarti,

Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board 

Chapter 1 Introduction to Partnership and Partnership Final Accounts Practise Problem [Pages 54 - 61]

Practise Problem | Q 3 | Page 56


From the following Trial Balance and adjustments given below of Reena and Aarti, 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

Debit Balance

Amount ₹

Credit Balance

Amount ₹

Purchases

35,500

Sales

58,200

Sundry Debtors

40,000

Sundry Creditors

25,700

Sales Returns

1,000

Purchases Returns

500

Opening Stock

18,100

R.D.D

800

Bad debts

500

Discount

50

Land & Building

25,000

Commission

250

Furniture

20,000

Capital :


Discount

1,000

Reena

50,000

Royalties

700

Aarti

30,000

Rent

1,900



Salaries

3,000



Wages

800



Insurance

1,500



Drawings :




Reena

2,000



Aarti

1,000



Cash at Bank

11,500



Cash in Hand

2,000




1,65,500


1,65,500

Adjustments :

1) Closing Stock valued at  22,000.

2) Write off   900 for Bad & doubtful debts and create a provision for Reserve for doubtful debts  1,000.

3) Create a provision for Discount on Debtors @3% and creditors @5%.

4) Outstanding Expenses - Wages  700 and Salaries 800.

5) Insurance is paid for 15 months, w.e.f. 1st April 2018

6) Depreciate Land and Building @5%

7) Reena & Aarti are Sharing Profits & Losses in their Capital Ratio.


Solution: 

In the books of Reena and Aarti Trading and Profit and Loss Account for the year ended on 31st March 2019 


Dr.





Cr.

Particulars

Amount ₹

Amount ₹

Particulars

Amount ₹

Amount ₹

To Opening Stock


18,100

By Sales

58,200


To Purchases

35,500


Less: Sales Return

1,000

57,200

Less: Purchase Return

500

35,000

By Closing Stock


22,000

To Royalties


700




To Wages

800





Add: O/s Wages

700

1,500




To Gross Profit c/d


23,900






79,200



79,200

To Rent


1,900

By Gross Profit b/d


23,900

To Salaries

3,000


By Commission


250

Add: O/s Salaries

800

3,800

By Discount


50

To Insurance

1,500


By R.D.C. (New)


1,285

Less: Prepaid Ins.

300

1,200




To Depreciation on Land and building


1,250




To R.B.D.D. A/c






Bad debts

500





Add: New Bad debts

900





Add: New Reserve

1,000






2,400





Less: Old Reserve

800

1,600




To Reserve for Discount on Debtors A/c






Discount

1,000





Add: New Reserve for Discount

1143

2,143




To Net Profit (Transferred to Capital A/cs)






Reena

8,495





Aarti

5,097

13,592






25,485



25,485


 

Balance Sheet as on 31st March 2019

Liabilities

Amount ₹

Amount ₹

Assets

Amount ₹

Amount ₹

Capital Account: Reena



Land and Building

25,000


Opening Balance

50,000


Less: Depreciation

1,250

23,750

Add: Net Profit

8,495


Furniture


20,000

Less: Drawings

2,000

56,495

Closing Stock


22,000

Capital Account: Aarti



Sundry Debtors

40,000


Opening Balance

30,000


Less: Bad Debts (New)

900


Add: Net Profit

5,097



39,100


Less: Drawings

1,000

34,097

Less: Provision for Doubtful Debts (New)

1,000


Sundry Creditors

25,700



38,100


Less: Provision for Discount on creditors

1,285

24,415

Less: Provision for Discount on Debtors 3%

1,143

36,957

Outstanding expenses



Prepaid Insurance Premium


300

Wages

700


Cash at Bank


11,500

Salaries

800

1,500

cash in Hand


2,000









1,16,507



1,16,507

Working Notes:

(1) Insurance premium  1,500 is paid for 15 months i.e. prepaid insurance premium for 3 months =  300.

(2) Reserve for Discount on Debtors = 3% on (Debtors – New Bad debts – New Reserve) = 3% x (40000 - 900 - 1000) = 3% x (40000 - 1900) = 3% x 38100 =  1143

(3) Reserve for Discount on Creditors = 5% on (Value of Creditors) = 5% x 25700 =  1285.

(4) Profit and Loss ratio = Capital ratio = 50,000: 30,000 = 5: 3.


Balbharati Solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board.


Chapter 1: Introduction to Partnership and Partnership Final Accounts

 

Select the most appropriate alternative from the following & rewrite the sentence.


Write the word/phrase/term, which can substitute the following sentence.


State whether the following statement is True or False with reasons.


Find an odd one.


Complete the Sentence.


Answer in one sentence only


Do you agree/disagree with the following statement


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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 7: Bills of Exchange

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

MARCH 2014 : View | PDF Download

OCTOBER 2014 View | PDF Download

MARCH 2015 View | PDF Download

JULY 2015 View | PDF Download

MARCH 2016 View | PDF Download

JULY 2016 View | PDF Download

JULY 2017 View | PDF Download

MARCH 2017 View | PDF Download

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

NPO : 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 

 

ACCOUNTANCY PAPER PATTERN

SINGLE ENTRY

FINAL ACCOUNT

NPO

BILL OF EXCHANGE

BILL OF EXCHANGE [FORMAT].

ADMISSION OF A PARTNER

RETIREMENT OF PARTNER

DEATH OF PARTNER

ACCOUNTING FOR SHARES

DISSOLUTION OF PARTNERSHIP FIRM

VALUATION OF GOODWILL WITH SOLUTION

FORMAT OF FINAL ACCOUNT

INTRODUCTION TO PARTNERSHIP

 

ACCOUNTS BOARD PAPERS WITH SOLUTION

 

MARCH 2014, OCTOBER 2014, MARCH 2015, JULY 2015, MARCH 2016, JULY 2016.JULY 2017, MARCH 2017, MARCH 2018,  JULY 2018  MARCH 2019 MARCH 2020

 

IMPORTANT PRACTICE PAPER FOR BOARD EXAM 2020

 

ACCOUNTS SAMPLE PAPER ONE  

ACCOUNTS SAMPLE PAPER TWO

ACCOUNTS SAMPLE PAPER THREE

OBJECTIVE QUESTIONS

ANSWER IN ONE SENTENCE EACH

SELECT THE MOST APPROPRIATE ALTERNATIVE

WRITE THE WORD/ TERM / PHRASE

STATE TRUE OR FALSE

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