Archana and Prerna are partners, sharing profits and losses in the ratio 2:1 with the help of following trial balance and adjustment given below. You are required to prepare trading and profit and loss account for the year ended 31st march 2019 and balance sheet as on that date.
Answers
Answer:
Explanation:
Trading and Profit & loss account
To opening acoount 8560 By sales 30200
To Purches 23700 sales return 400 29800
To Purchase return (1000) 22700 By closing a/c 12000
To wages 950
To ou/ wages 300 1250
To heating 1000
To gross profit 8290
-------------- ----------
41800 41800
To electricity charges 1450 By gross profit 8290
Add o/s charges 200 By interest 310
To trade expense 850
To bad debts 500
To written patent 250
To depreciation
furnture 525
land & building 2200
To interest on capital
Archana 1200
Prerna 600
To net profit trans
Archana 550
Prerna 275
------------------ -------------
8600 8600
Balance sheet
Capital account patents 2000
opening balance 40000 less written off (250)
add int. on capital 1200 furniture 13000
net profit 550 depreciation (525)
drawing (1200) land & building 22000
Capital A/c prerna
opening balance 20000 Depreciation (2200)
int. on capital 600 stock stationery 3000
Net profit 275 closing stock 12000
drawing (900) Sundry debtors 18500
other loans 3000 Bad debts (800)
Reserve fund 1000 trade mark 2000
sundry creditors 17500 bills receivable 6300
Bills payable 5000 cash at bank 5000
wages 300 Investment 7500
Electricity charges 200
------------------- -----------
87525 87525