# Practical Problem 06

#### Solution:

 In the books of Archana and Prerana Dr                                                           Trading and Profit and loss accounts for the year ended 31st March,2019 .                                                            Cr Particular ₹ ₹ Particular ₹ ₹ To Opening Stock 8,560 By Sales 30,200 To Purchase 23,700 Less: Sales return -400 29,800 Less: Purchase Return -1,000 22,700 To wages 950 By Closing Stock 12,000 Add: Outstanding 300 1250 To Heating & Lighting 1,000 To Gross Profit c/d 8,290 41,800 41,800 To Electric Charges 1,450 By Gross Profit b/d 8,290 Add: Outstanding 200 1,650 By Interest 310 To Trade Expenses 850 To Bad Debts (old) 200 Add: New Bad Debts 800 1000 Less: Old R.D.D -500 500 To Patent Written off 250 To Depreciation Land & Building 2,200 Furniture 525 2,725 To Interest on Capital Archana 1,200 Prerana 600 1,800 To Net Profit Archana 550 Prerana 275 825 8,600 8,600
 Dr                                                                                                                           Partners Capital A/c                                                                                                                         Cr Particular Archana Prerana Particular Archana Prerana To Drawing 1,200 900 By Balance b/d 40,000 20,000 By Interest on Capital 1,200 600 To Balance c/d 40,550 19,975 By Net Profit 550 275 41,750 20,875 41,750 20,875
 Balance Sheet as on 31st March,2019 . Liabilities ₹ ₹ Asset ₹ ₹ Capital A/c Land & Building 22,000 Archana 40,550 Less: Depreciation @ 10% -2,200 19,800 Prerana 19,975 60,525 Furniture 13,000 Less: Depreciation @ 5% -525 12,475 Other Loans 3,000 Patent 2,000 Reserve Fund 1,000 Less: Written off (1/8)th -250 1,750 Creditor 17,500 Trade Mark 2,000 Bills Payable 5,000 Investment 7,500 Outstanding wages 300 Sundry Debtor 18,500 Outstanding Electric Charges 200 Less: New Bad Debts -800 17,700 Stock of stationary 3,000 Bill Receivable 6,300 Cash at Bank 5,000 Closing Stock 12,000 87,525 87,525