Practical Problem 10

Kshipra and Manisha are Partners sharing Profit and Losses in their Capital Ratio
You are required to prepare Trading Account and Profit and Loss Account for the year
ended 31st March, 2019 and Balance Sheet as on that date.
Trial Balance
Debit Balance	Rs	Credit Balance	Rs
Sundry Debtors	28,000	Sales	1,20,000
Purchases	55,000	Rent	1,800
Furniture	38,500	Sundry Creditors	38,500
Plant & Machinery	60,000	Purchase Return	1,000
Wages	800	Discount	500
Salaries	3,500	Bills Payable	9,000
Discount	800	Capital A/c :
Bills Receivable	14,400	Kshipra	90,000
Carriage Outward	1,000	Manisha	30,000
Postage	500	Current A/c
Sales Return	500	Kshipra	5,000
Cash in Hand	4,000	Manisha	3,000
Cash at Bank	47,000
Insurance	2,000
Opening Stock	17,800
Trade Expenses	1,500
Ware house Rent	2,500
Advertisement	1,000
Building	20,000
	2,98,800		2,98,800

Adjustments :
1) Stock on 31st March 2019 was at ` 37,000.
2) Sales includes, sale of machinery of ` 2,000, which is sold on 1st April 2018.
3) Depreciation on fixed assets @ 5%.
4) Each Partners is entitled to get Commission at 1% of Gross Profit
and Interest on Capital 5% p.a.
5) Outstanding Expenses Wages ` 200 & Salaries ` 500
6) Create provision for doubtful debts @ 3% on Sundry Debtors.

In the books of Kshipra and Manisha
Dr Trading and Profit and loss accounts for the year ended 31st March,2019 . Cr
Particular	Rs	Rs	Particular	Rs	Rs
To Opening Stock		17,800	By Sales	1,20,000
To Purchase	55,000		Less: Sales Return	-500
Less: Return	-1000	54,000		1,19,500
To Wages	800		Less: Sales of Machinery	-2,000	1,17,500
Add: Outstanding Wages	200	1000
To Gross Profit c/d		81,700	By Closing Stock		37,000
		1,54,500			1,54,500
To Salaries	3,500		By Gross Profit b/d		81,700
Add: Outstanding Salaries	500	4,000	By Rent		1,800
To Discount		800	By Discount		500
To Carriage Outward		1,000
To Postage		500
To Insurance		2,000
To Trade Expenses		1,500
To Warehouse Rent		2,500
To Advertisement		1,000
To Depreciation
Furniture	1,925
Plant	2,900
Building	1,000	5,825
To Commission to Partner
Kshipra	817
Manisha	817	1,634
To Interest on Capital
Kshipra	4,500
Manisha	1,500	6,000
To New R.D.D		840
To Net Profit:
Kshipra	42,301
Manisha	14,100	56,401
		84,000			84,000