1012Linery < 2,000 wrongly included in Wages.
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Q.19. Anand and Pramod are partners sharing profits and losses in the ratio of 3 : 2 respectively. From the
following Trial Balance and adjustments, you are required to prepare Trading and Profit & Loss Account
for the year ended 31" March, 2020 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2020
Amount
Amount
Debit Balance
Credit Balance
₹
1,62,000
1,08,000
Opening Stock
Salary
Purchases
Wages
Audit Fees
Motive Power
Investments
Bad Debts
Loose Tools
Carriage
Interest
Motor Van
Buildings
Debtors
Cash at Bank
Machinery
Drawings A/c:
Anand
Pramod
83,000 Capital A/c:
13,000 Anand
1,97,000 Pramod
7,500 Current A/c:
8,500 Anand
15,000 Pramod
56,000 Sundry Creditors
6,400 Sales
17,000 Bank Overdraft
7,000
4,000
88,000
1,50,000
96,000
44,000
60,000
16,200
10,800
99,000
4,20,000
56,400
12,000
8,000
8,72,400
8,72,400
nents:
Answers
working note
depreciation
current a/c
pnl and trading
balance sheet are given
Here's the balance sheet:
The Trading and Profit & Loss Account and the Balance Sheet would look like using a table format:
Trading and Profit & Loss Account for the year ended 31st March, 2020:
Particulars Amount
To Opening Stock ₹1,62,000
To Purchases ₹4,20,000
To Wages (Adjusted) ₹1,99,000
To Carriage ₹8,500
To Motive Power ₹96,000
To Audit Fees ₹16,200
To Loose Tools ₹10,800
To Bad Debts ₹4,000
To Gross Profit c/d (balancing figure) ₹3,05,900
Total ₹10,23,200
By Sales ₹6,40,000
By Closing Stock ₹2,57,300
By Gross Profit b/d ₹3,05,900
Total ₹10,03,200
Profit and Loss Appropriation Account:
Particulars Amount
To Anand's drawings ₹8,500
To Pramod's drawings ₹15,000
To Interest on Capital - Anand ₹1,300
To Interest on Capital - Pramod ₹15,760
To Net Profit transferred to Balance Sheet (balancing figure) ₹2,68,840
Total ₹3,08,100
By Anand's Capital A/c ₹13,000
By Pramod's Capital A/c ₹1,97,000
By Interest on Drawings - Anand ₹1,020
By Interest on Drawings - Pramod ₹1,800
By Net Profit transferred from Trading and Profit & Loss Account ₹2,68,840
Total ₹3,08,100
Balance Sheet as on 31st March, 2020:
Liabilities Amount Assets Amount
Capital:
Anand ₹14,780 Machinery ₹1,50,000
Pramod ₹2,32,720 Buildings ₹88,000
Current Liabilities: Debtors ₹1,08,000
Sundry Creditors ₹56,000 Bank Overdraft ₹17,000
Reserve: Investments ₹60,000
Net Profit ₹2,68,840 Stock ₹2,57,300
Total ₹5,65,540
Therefore, the balance sheet as on march 31st March ₹5,65,540
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