Q.2 Ajay and Sanjay are partners in a firm sharing profits and losses in the ratio of a. From the following Trial Balance and adjustments, you are required to prepare Tradi and Profit and Loss A/c for the year ending 31st March, 2012 and Balance Sheet png that date.
Trial Balance as on 31st March, 2012
Particulars
(121
Credit t
500
Debit ?
1,000
400
1,600
28,000
33,000
12,000
24,000
500
2.800
96,600
12,000
88,000
4,000
2.000
3,05,900
Insurance
RD.D.
Discount
Postage and Telegram
Salaries
Debtors and Creditors
Wages
Opening Stock
Carriage
Return Inwards and Outwards
Purchases and Sales
Bank Overdraft
Plant and Machinery
Land and Building
Drawings:
Capitals :
Ajay
Sanjay
Ajay
Sanjay
34.000
4,600
1,50,800
60,000
30,000
26,000
3,05,900
(1) Closing Stock on 31.03.2012 was valued at cost 28,000 while its market value was
Adjustments :
30,000
(2) Salaries were outstanding 1,000.
(3) Goods worth 2,000 were distributed as free samples. (4) Depreciate Land and Building @ 5% p.a. and Plant and Machinery @ 10% p.a.
(5) Write off 7 1,000 for bad debts and provide reserve for bad and doubtful debts debtors.
@ 5% on find the net profit
Answers
Trading and Profit and Loss Account for the year ending 31st March, 2012
Particulars Debit Credit
Opening Stock 12,000 -
Purchases 88,000 -
Carriage 2,000 -
Return Inwards - 500
Return Outwards 1600 -
Free Samples - 2000
Closing Stock - 28000
Sales 96,600 -
Gross Profit - -
Salaries 12,000 -
Outstanding Salaries - 1,000
Insurance 500 -
R.D.D. 2,800 -
Discount 400 -
Postage and Telegram 1,000 -
Wages 24,000 -
Bad Debts Expense 7,000 -
Depreciation 5,500 -
Net Profit - -
Balance Sheet as on 31st March, 2012
Particulars Debit Credit
Capital: - -
Ajay 34,000 -
Sanjay 46,000 -
Land and Building 60,000 -
Plant and Machinery 30,000 -
Debtors and Creditors 26,000 -
Bad Debts Reserve - 1,300
Closing Stock 28,000 -
Bank Overdraft 4,000 -
Net Profit - -
TOTAL 3,05,900 3,05,900
Note:
The Gross Profit is calculated by deducting the total expenses from the total revenue
Bad Debts Reserve is calculated by multiplying the Debtors and Creditors with 5%
Depreciation is calculated by multiplying the Land and Building with 5% and Plant and Machinery with 10%
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