# Practical Problem 04

Practical Problem | Q 4 | Page 57

 From the following Trial Balance of M/S Meera and Madhav. 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 Trial Balance Debit Balance ₹ Credit Balance ₹ Stock (1/4/2018) 25,000 Bank overdraft 5,000 Debtors 80,500 Bills Payable 12,500 Bills Receivable 10,000 Creditor 68,000 Purchases 2,08,500 Sales 3,25,000 Returns 1,000 Outstanding Rent 2,000 Carriage Inward 3,000 Unpaid Wages 1,500 Carriage Outwards 4,500 Capital : Motor Vehicle 55,000 Meera 75,000 General Expenses 1,800 Madhav 75,000 Export Duty 900 Purchase Return 1,000 Advertisement 4,800 (For 3 years from 1/10/2018) Printing & Stationary 1,200 Drawings : Meera 3,500 Madhav 2,000 Leasehold Premises 1,10,000 Cash at Bank 45,000 Furniture 8,300 5,65,000 5,65,000
 Adjustments : 1) Closing Stock is valued at ₹ 32,000. 2) Provide Provision for Doubtful Debts ₹ 2,000. 3) Create reserve for Discount on Debtors @ 3%. 4) Valued of Leasehold Premises on 31st March 2019 ₹ 1, 00,000. 5) Outstanding Expenses Printing & Stationary ₹ 500.

#### Solution :

 In the books of M/S Meera and Madhav. Dr                                                                              Trading and Profit and loss accounts for the year ended 31st March,2019 .                                       Cr Particular ₹ ₹ Particular ₹ ₹ To Opening Stock 25,000 By Sales 3,25,000 To Purchase 2,08,500 Less: Return -1000 3,24,000 Less: Purchase Return -1,000 2,07,500 To Carriage Inward 3,000 By Closing Stock 32,000 To Gross Profit c/d 1,20,500 3,56,000 3,56,000 By Gross Profit b/d 1,20,500 To Carriage Outward 4,500 To General Expenses 1,800 To Export Duty 900 To Advertisement 4,800 Less: Prepaid -4,000 800 To Printing and Stationary 1,200 Add: Outstanding 500 1,700 To RDD 2,000 To RFDD 2,355 To Dep on Leasehold Premises 10,000 To Net Profit c/d Meera 48,222 Madhav 48,223 96,445 1,20,500 1,20,500
 Dr                                                                                                                 Partners Capital A/c                                                                                                                                   Cr Particular Meera Madhav Particular Meera Madhav To Drawing 3,500 2,000 By bal b/d 75,000 75,000 By Net Profit 48,222 48,223 To Bal c/d 1,19,722 1,21,223 1,23,222 1,23,223 1,23,222 1,23,223
 Balance Sheet as on 31st March,2019 . Liabilities ₹ ₹ Asset ₹ ₹ Motor Vehicle 55,000 Capital A/c Leasehold Premises 1,10,000 Meera 1,19,722 Less: Depreciation 10,000 1,00,000 Madhav 1,21,223 2,40,945 Furniture 8,300 Bank Overdraft 5,000 Bills Payable 12,500 Sundry Debtor 80,500 Sundry Creditor 68,000 Less: RDD -2000 Outstanding Rent 2,000 78,500 Unpaid Wages 1,500 Less: RFDD @ 3% -2355 76,145 O/s Printing & Stationary 500 Bill Receivable 10,000 Cash at bank 45,000 Closing Stock 32,000 Prepaid Advertisement 4,000 3,30,445 3,30,445