Practical Problem 05

Practical Problem | Q 5 | Page 58

Sucheta & Gayatri are Partners sharing Profit and Losses 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
Particular	(DR) ₹	(Cr) ₹
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 free sample.

3) Motive Power includes ` 500 paid for 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 dishonoured of Bill of ` 4,000.

In the books of Sucheta & Gayatri
Dr Trading and Profit and loss accounts for the year ended 31st March,2019 . Cr
Particular	₹	₹	Particular	₹	₹
To Opening Stock		18,700	By Sales		1,85,500
To Purchase		65,000	By Good distributed as free sample		3,000
To Works manager salary		2,300	By Closing Stock		19,700
To Wages & Salary		4,000
To Motive Power	1,350
Less: Deposit for meter	-500	850
To Custom Duty		1,500
To Gross Profit c/d		1,15,850
		2,08,200			2,08,200
			By Gross Profit b/d		1,15,850
To Bad Debts		2,000	By Discount		400
To New R.D.D		1,485	By Interest		1,300
To Unproductive Wages		3,000
To Audit Fees		2,500
To Rent		1,800
To Conveyance		2,000
To advertisement		3,000
To Depreciation on Building		4,400
To Net Profit c/d
Sucheta Capital A/c	58,419
Gayatri Capital A/c	38,946	97,365

		1,17,550			1,17,550