tambe and pitale are partner’s sharing profits and losses equally. from the following trial balance and adjustments, prepare trading and profit and loss account for the year ended 31stmarch,2012 and balance sheet as on that date.
Answers
Answer:
Debit Balances
Land And Building
Machinery (Addition on
1st July 2011 10,000)
Opening stock
Wages
Cash at Bank Sundry Debtors
Purchases
Carriage
Rent, Rates and Taxes
Furniture and fixture
Salaries
Office expenses
Drawing A/c-
Tambe Pitale
Trial Balance as on 31" March, 2012
Amt. ₹
75,000 55,000
23,000
5,750
3,500 32,800
63,000
1,250
2,400 26,600
3,500
2,450
5,000 4,000
3,03,250
Credit Balances
Capital A/C
Sales
Sundry Creditors
10% Bank loan
(Taken on 1st Oct. 2011) Sundry Income
Pre-received rent
Provident Fund
Amt.
₹
70,000
50,000
85,000
44,250
20,000
1,500
2,500
30,000
Tambe
Pitale
3,03.250
Profit and Loss Account
A trial Balance is a statement that records all the balances of every ledger created and is created to check the mathematical errors if any.
After Trial Balance, the statement of profit and loss is prepared to find the net and gross profit/loss of the company. It is a nominal account and is considered a final account that records all the expenses and incomes.
The assets and liabilities are not recorded in the statement of profit and loss but rather mentioned in the balance sheet.
In the following question,
All the expenses, Wages, Purchases, Carriage, Rent, Rates and Taxes, Depreciation on Furniture and fixtures, Salaries, Office expenses, and Drawing shall be sent to the debit side of the account.
Whereas,
All the incomes like sales, interest received, pre-received interest, and sundry income shall be sent to the credit side and the appropriation shall be settled.
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