Practical Problem 07

Practical Problem | Q 7 | Page 60

	Satish and Pramod are Partners. Prepare Trading Account and Profit and Loss Account
	for the year 31st March, 2019. You have to find out Gross Profit and Net Profit only
	Trial Balance
	Debit Balance	₹	Credit Balance	₹
	Stock (1/4/218)	8,700	Sales	68,000
	Purchases	18,300	Dividend	2,000
	Wages	1,000	Purchases Return	500
	Insurance	800	Sundry Creditors	13,000
	Unproductive Wages	1,400	10% Bank Loan (w.e.f. 1/7/2018)	8,000
	Warehouse Rent	600	10% Bank Loan (w.e.f. 1/7/2018)	8,000
	Carriage Outward	1,200	Other Receipts	1,000
	Sales Return	600
	Export Duty	1,400
	Customs Duty	800
	Sundry Debtors	40,000
	Investments	15,700
	Factory Rent	1,600
	Postage & Telegram	400




		92,500		92,500
Adjustments :
1) The Closing Stock is valued at ₹ 15,400.
2) Outstanding Wages ₹ 500.
3) Create provision for Bad debts ` 800 and maintain R.D.D 3% on Sundry Debtors.
4) Goods of ₹1,800 distributed as a free sample.
5) Goods of ₹ 2,000 were sold and delivered on 31st March 2019 but no entry is
Passed in the Books of Account.

In the books of Satish and Pramod
Dr Trading and Profit and loss accounts for the year ended 31st March,2019 . Cr
Particular	₹	₹	Particular	₹	₹
To Opening Stock		8,700	By Sales	68,000
To Purchase	18,300		Less: Return	-600
Less: Purchase Return	-500	17,800		67,400
To Wages	1,000		Add: unrecorded Sales	2,000	69,400
Add: Outstanding	500	1,500	By Goods Distributed as free sample		1,800
To Custom Duty		800
To Factory Rent		1,600	By Closing Stock		15,400
To Gross Profit C/d		56,200
		86,600			86,600
			By Gross Profit b/d		56,200
To Insurance		800	By Dividend		2,000
To Unproductive wages		1,400	By Other Receipt		1,000
To warehouse rent		600
To Carriage outward		1,200
To Export Duty		1,400
To Postage and Telegram		400
To New Bad debts		800
To New R.D.D		1,236
To Advertisement		1,800
To Interest on Loan		600
To Net Profit c/d
Satish Capital A/c	24,482
Pramod Capital A/c	24,482	48,964

		59,200			59,200

Working :