Q. Following is the Trial Balance of M/s Ajay and Vjay who share profits
and losses equally. You are required to prepare Trading and Profit and
Loss Account for the year ended 31" March 2019 and Balance Sheet as on
that date.
Trial Balance as on 31st March 2019
Particulars
Debit
Credit
Balance (Rs.) Balance (Rs.)
Capitals:
Ajay
2,00,000
Vjay
1,20,000
Bills Receivable and Bills Payable
40,000
50,000
Opening Stock
70,000
Purchases and Sales
1,94,000 3,63,000
Returns
3,000
4,000
Salaries
15,600
Wages
28,400
Conveyance
2,200
Commission
6,000
Miscellaneous Expenses
3,200
Warehouse Rent
9,000
Brokerage
3,000
Dock Charges
4,200
Insurance
4,800
Goodwill
76,000
Land and Building
1,80,000
Shares in Bajaj Ltd.
50,000
Cash in Hand
3,600
Sundry Debtors and Creditors
56,000
60,000
Motor Van
60,000
8,03,000 8,03,000
Adjustments:
1. Closing Stock was valued at Rs. 75,000/-
2. Depreciate Land and Building and Motor Van @ 5% p.a.
3. Insurance is paid for the year ending 31" May 2019.
4. Ajay has taken goods of Rs. 3,000/- for his personal use.
5. Goods of Rs. 8,000/- were destroyed by fire and the Insurance Co.
admitted a claim of Rs. 6,400/- only.
6. Commission due but not received Rs. 1,600/-
Answers
Explanation:
Trading Profit and Loss and Profit and Loss Appropriation Account
Particulars Amount Particulars Amount
To opening stock
To purchases 7,60,000
Less:Returns (10,000)
To GP
To salary & wages
To rent 1,10,000
Ad;O/s 10,000
To general exp
To depreciation
Furniture & fix
computers
machinery
To net profit
To interest on capital
Ayub - 24,000
Amit-23,100
To profit transferred to
Ayub's capital A/c-6950
Amit's capital A/c-6950
45,000
7,50,000
4,80,000
1,80,000
1,20,000
35,000
10,000
44,000
30,000
61,000
47,100
13,900 By sales 12,50,000
Less: returns (25,000)
By closing stock
By GP b/d
By Net profit 12,25,000
50,000
4,80,000
61,000
Total 61,000 Total 61,000
BALANCE SHEET FOR THE YEAR 31ST MARCH,2018
Liabilities Amount Assets Amount
Capital A/cs
Ayub 4,00,000
Add:interest on capital 24,000
Share of profit
6950
Less:drawings (60,000)
Amit 3,85,000
Add:interest on capital 23,100
share of profit 6950
Less:drawings (50000)
Sundry Creditors
Rent outstanding
3,70,950
3,65,050
90,000
10,000
Computers 2,20,000
Less:-Depreciation (44,000)
Furniture 50,000
Less:Depreciation (10,000)
Machinery 3,00,000
Less: Depreciation (30,000)
Sundry Debtors
Closing stock
Cash in Hand
Cash at bank 1,76,000
40,000
2,70,000
2,00,000
50,000
25,000
75,000
Total 8,36,000 Total 8,36,000
Answer By - leishasri