Question

8. From the following Trial Balance of M/s. Mahesh and Umesh, you are
required to prepare Trading and Profit and Loss Account for the year ended
31st March, 2013 and Balance Sheet as on that date. Profit sharing ratio of
Mahesh and Umesh was 3/5th and 2/5th respectively.
Debit Balance
Tale as otse March 2013
Ant
Od Balance
56.000 GA
Investment
Current A Mahesh
7.000
17.000 Sundry editor
S2000 Sales
13.000 Bank over
500
1000
Carnage
Loose tools
Building
Salary
Audit fees
Openingstock
Wages
Purchase
Move Power
Badets
Printing and Susonary
Debtor
97000
15.000
6400
4.000
8.000
52.000
72.000
38.000
372.00
Machinery
Motor
Adjustments:
1) Stock on hand on 31st March, 2013 was valued at Rs 76.000
2) Interest on partner's capital at 5% pa was allowed.
3) Goods worth Rs. 2,000 and Rs. 1,500 withdrawn by Mahesh and Umesh
respectively for their personal use.
4) Mahesh is entitled to get salary of Rs.6,500 and Umesh is to be given 2%
commission on sales
5) Rs. 2,500 due from customer is not recoverable.
6) Depredate Motor Van at 8% pa and Building at 7% pa​

Answer 1

Adjustments:  

1) Stock on hand on 31st March, 2013 was valued at Rs. 76,000.  

2) Interest on partner’s capital at 5% p.a. was allowed.  

 

3) Goods worth Rs. 2,000 and Rs. 1,500 withdrawn by Mahesh and Umesh respectively for their personal use.  

4) Mahesh is entitled to get salary of Rs. 6,500 and Umesh is to be given 2% commission on sales.  

5) Rs. 2,500 due from customer is not recoverable.  

6) Depreciate Motor Van at 8% p.a. and Building at 7% p.a.