Practical Problem 09
Practical Problem | Q 9 | Page 61
You are required to give effects of Adjustments with the help of following information | |||
Trial Balance as on 31st March, 2019 | |||
Debit Balance | ₹ | Credit Balance | ₹ |
Land & Building | 40,000 | Capital A/C | |
Furniture | 18,000 | Sun | 33,500 |
Machinery (Purchased on 1/7/18) | 40,000 | MOON | 33,500 |
Goodwill | 2,000 | Current A/c : Sun | 6,000 |
Wages | 2,000 | Creditors | 25,000 |
Current A/c : Moon | 4,000 | Bank Overdraft | 10,000 |
8% Debentures(Purchased on 1/10/18) | 8,000 | Reserve Fund | 5,000 |
Provident Fund Investment | 3,500 | Provident Fund | 5,000 |
Stock of Postal stamps | 500 | ||
1,18,000 |
| 1,18,000 | |
Adjustments : |
1) Partners are entitled to get salary ₹ 6,000 p.a. in addition to their profit & loss sharing. |
2) Depreciation on Land & Building, Furniture & Machinery @ 10%, 5% and 3% respectively. |
3) Interest on Capital 5% p.a. |
4) Closing Stock ₹ 60,743. |
5) Wages included ₹ 1,000 as advance given to workers. |
6) Interest due but not paid ₹ 800. |
7) Total Net Profit amounted to ₹ 38,113 |
Solution :
In the Books of Sun and Moon | |||||
Dr Partners Current A/c Cr | |||||
Particular | Sun | Moon | Particular | Sun | Moon |
To Balance b/d | 4,000 | By Balance b/d | 6,000 | ||
By salary to Partner | 6,000 | 6,000 | |||
To Balance c/d | 32,731 | 22,732 | By Interest on Capital | 1,675 | 1,675 |
By Net Profit | 19,056 | 19,057 | |||
32,731 | 26,732 | 32,731 | 26,732 | ||
Balance Sheet as on 31st March,2019 . | |||||
Liabilities | ₹ | ₹ | Asset | ₹ | ₹ |
Capital A/c | Land & Building | 40,000 | |||
Sun | 33,500 | Less: Depreciation | -4000 | 36,000 | |
Moon | 33,500 | 67,000 | Furniture | 18,000 | |
Current A/c | Less: Depreciation | -900 | 17,100 | ||
Sun | 32,731 | Machinery | 40,000 | ||
Moon | 22,732 | 55,463 | Less: Depreciation | -900 | 39,100 |
Creditors | 25,000 | Goodwill | 2,000 | ||
Bank Overdraft | 10,000 | 8% Debentures (Purchased on 1/10/18) | 8,000 | ||
Reserve Fund | 5,000 | ||||
Provident Fund | 5,000 | Add: Interest | 320 | 8,320 | |
Outstanding Interest | 800 | Provident Fund Investment | 3,500 | ||
Stock of Postal stamps | 500 | ||||
Closing Stock | 60,743 | ||||
Prepaid Wages | 1,000 | ||||
1,68,263 | 1,68,263 | ||||