Question

(Question
strictly
Q. 1. X and Y are partners sharing profits in the ratio of 2 : 1. The undermentioned
trial balance was extracted from their books as at 31st March, 2019:
Dr. Balances Cr. Balances
3,20,000
2,40,000
X's Capital
Y's Capital
X's Drawings
Y's Drawings
Stock (1st April, 2016)
Purchases and Sales
Debtors and Creditors
Buildings
Cash in hand
Bank Overdraft
Salaries to Staff
Rent
Advertising Expenditure
Travelling Expenses
40,000
32,000
45,200
8,68,000
1,52,000
6,00,000
5,900
12,45,000
48,000
27,500
74,700
26,400
5,000
31,300
18,80,500
18,80,500
You are required to prepare the Profit and Loss Account and Profit and Loss
Appropriation Account for the year ended 31st March, 2019 and a Balance Sheet as
on that date. The following adjustments are to be made :
(i) The value of stock on March 31, 2019 was 64,000.
(ii) Charge depreciation on Buildings at 10%.
(iii) Provide for outstanding rent 2,400.
(iv) Partners are entitled to interest on Capital @ 5% and X is entitled to a salary
of 48,000 p.a.
[Ans. Gross Profit 3,95,800; Net Profit as per Profit & Loss A/c 1,96,000;​

Answer 1

Answer:

(Question

strictly

Q. 1. X and Y are partners sharing profits in the ratio of 2 : 1. The undermentioned

trial balance was extracted from their books as at 31st March, 2019:

Dr. Balances Cr. Balances

3,20,000

2,40,000

X's Capital

Y's Capital

X's Drawings

Y's Drawings

Stock (1st April, 2016)

Purchases and Sales

Debtors and Creditors

Buildings

Cash in hand

Bank Overdraft

Salaries to Staff

Rent

Advertising Expenditure

Travelling Expenses

40,000

32,000

45,200

8,68,000

1,52,000

6,00,000

5,900

12,45,000

48,000

27,500

74,700

26,400

5,000

31,300

18,80,500

18,80,500

You are required to prepare the Profit and Loss Account and Profit and Loss

Appropriation Account for the year ended 31st March, 2019 and a Balance Sheet as

on that date. The following adjustments are to be made :

(i) The value of stock on March 31, 2019 was 64,000.

(ii) Charge depreciation on Buildings at 10%.

(iii) Provide for outstanding rent 2,400.

(iv) Partners are entitled to interest on Capital @ 5% and X is entitled to a salary

of 48,000 p.a.

[Ans. Gross Profit 3,95,800; Net Profit as per Profit & Loss A/c 1,96,000