NOTES

From the following Trial balance of Kamlesh and Naresh. You are required to prepare Trading A/c & P & L A/c for the year ended 31^st March, 2013 and balance sheet as on that date:     

Trial balance as on 31^st March, 2013 

Particulars	Debit (Rs.)	Credit (Rs.)
Capital A/c
Kamlesh		1,20,000
Naresh		80,000
Drawings A/c
Kamlesh	4,000
Naresh	2,000
Stock on 01-04-2012	88,000
Bills receivable	3,600
Purchases and Sales	3,80,000	6,04,000
Returns	12,000	4,000
Salaries	20,000
Carriage outward	2,800
Wages	48,000
Insurance	3,200
Discount received		400
Postage	1,600
Debtors and Creditors	1,40,800	1,28,400
Furniture	48,000
Cash in hand	19,600
Machinery	1,60,000
Rent and taxes	2,400
Printing & stationery	800
	9,36,800	9,36,800

 

Adjustment:

a.      Closing stock on 31^st March, 2013 valued at Rs. 56,000.

b.      Prepaid expenses were: Wages Rs. 4,000 & Salaries Rs. 1,000.

c.      Unrecorded sales amounted to Rs. 1,000

d.      Depreciate furniture at 10% and machinery at 5%.

e.      Create Reserve for bad and doubtful debts at 5% on debtors. Goods lost by fire Rs. 1,500.

Notes of Partnership Accounts - Partnership Final Accounts (Old & New)

1. From the following Trial Balance of Sudhakar and Prabhakar, you are required to prepare a Trading account, and profit and Loss account for the year ended 31^st December, 1991 and Balance Sheet as on that date, after taking into consideration the additional information. 

   Particulars	Debit (Rs)	Particulars	Credit (Rs)
   Opening Stock	60,000	Sales	1,25,000
   Salary and Wages	4,500	Bills Payable	1,000
   Carriage	2,500	RDD	800
   Purchase	60,000	Creditors	16,000
   Bills Receivable	600	Returns	500
   Rent	3,500	Capital Accounts :
   Sundry Debtors	18,000	Sudhakar	20,000
   Returns	1,000	Prabhakar	15,000
   Machinery	12,000	Reserve Fund	21,600
   Travelling Expenses	3,000
   Cash at Bank	1,000
   Building	25,000
   Officer Expenses	2,700
   Advertisement for 3 years	3,000
   Drawings :
   Sudhakar	1,000
   Prabhakar	1,500
   Insurance	600
   Total Rs.	1,99,900	Total Rs.	1,99,900

    

   Adjustments:

   1)     Closing Stock : Cost Rs. 25,000, Market value Rs. 30,000

   2)     Partners sharing profit and loss equally.

   3)     Prepaid Insurance Rs. 100

   4)     Goods costing Rs. 3,000 were destroyed by fire.

   5)     Provide depreciation on Machinery @ 10% and on Building @ 20%.

   6)     Outstanding expenses: Salaries Rs. 1,000, Rent Rs.  500

   7)     Provide Reserve for bad and doubtful debts @ 5% on sundry debtors.

   
   see in detail
   
   

2. From the following trial balance you are required to prepare a Trading Account and Profit & Loss Account for the year ended 31^st March, 1996 & Balance sheet as on that date after taking into consideration the adjustments.                                                                                           

   Trial Balance as on 31^st March, 1996 

   Particulars	Debit (Rs.)	Credit (Rs.)
   Opening Stock	40,000	---
   Salaries	6,000	---
   Carriage	2,000	---
   Purchases & Sales	70,000	1,50,000
   Returns	1,000	2,000
   Bills Receivable & Bills Payable	2,000	3,000
   Discount	500	200
   R.D.D.	---	800
   Machinery	20,000	---
   Debtors & Creditors	18,000	10,000
   Travelling Expenses	1,000	---
   Sales Commission	2,500	---
   Cash at Bank	12,000	---
   Building	21,000	---
   Advertisement for 3 years	3,000	---
   Drawings :   Mona	1,000	---
   Sona	2,000	---
   Capitals :      Mona	---	25,000
   Sona	---	20,000
   Rent	1,000	---
   Reserve Fund	---	9,000
   Furniture	17,000	---
   Total	2,20,000	2,20,000

              

   Adjustments:

   1)    Closing stock was valued at Rs. 30,000.

   2)    Machinery includes purchase of new machinery on 1^st October, 1995 Rs. 10,000.

   3)    Goods costing Rs. 3,000 were sent on sale or return basis, which were included in sales. Goods are sent at 25% profit      on sales.

   4)    Depreciate machinery at 20% p.a.

   5)    The salesmen are entitled to 2% commission on net sales.

   6)    Goods of Rs. 1,200 were distributed as free samples for which no entry has been passed in the books.

   
   see in detail
   
   

3. From the following Trial balance of Kamlesh and Naresh. You are required to prepare Trading A/c & P & L A/c for the year ended 31^st March, 2013 and balance sheet as on that date:     

   Trial balance as on 31^st March, 2013 

   Particulars	Debit (Rs.)	Credit (Rs.)
   Capital A/c
   Kamlesh		1,20,000
   Naresh		80,000
   Drawings A/c
   Kamlesh	4,000
   Naresh	2,000
   Stock on 01-04-2012	88,000
   Bills receivable	3,600
   Purchases and Sales	3,80,000	6,04,000
   Returns	12,000	4,000
   Salaries	20,000
   Carriage outward	2,800
   Wages	48,000
   Insurance	3,200
   Discount received		400
   Postage	1,600
   Debtors and Creditors	1,40,800	1,28,400
   Furniture	48,000
   Cash in hand	19,600
   Machinery	1,60,000
   Rent and taxes	2,400
   Printing & stationery	800
   	9,36,800	9,36,800

    

   Adjustment:

   a.      Closing stock on 31^st March, 2013 valued at Rs. 56,000.

   b.      Prepaid expenses were: Wages Rs. 4,000 & Salaries Rs. 1,000.

   c.      Unrecorded sales amounted to Rs. 1,000

   d.      Depreciate furniture at 10% and machinery at 5%.

   e.      Create Reserve for bad and doubtful debts at 5% on debtors. Goods lost by fire Rs. 1,500.

   
   see in detail
   
   

4. From the following trial balance of Tambe & Pitale, you are required to prepare Trading A/c & P & L A/c for the year ended 31^st March, 12 and balance sheet as on that date after taking into consideration the following adjustments.

   a.    Tambe & Pitale share profits and losses in the capital proportion.

   b.    Closing stock was valued at Rs. 25,500 & at market price Rs. 30,000.

   c.    Outstanding expenses- Rent Rs. 300; Insurance Rs. 700.

   d.    Depreciate machinery and building @ 10% p.a.

   e.    Goods of Rs. 10,000 were destroyed by fire and insurance company admitted a claim for Rs. 6,500.

   f.     Provide for bad debts Rs. 2,000 & Create Reserve for bad and doubtful debts at 10% on debtors.

    Trial Balance as on 31^st March, 2012 

   Particulars	Debit (Rs.)	Particulars	Credit (Rs.)
   Opening stock	30,000	Capital A/c :
   Purchases	50,000	Tambe	50,000
   Return inwards	2,000	Pitale	75,000
   Debtors	40,000	Bills payable	12,000
   Advertisement (for 3 years)	6,000	Creditors	30,000
   (w.e.f. 01/10/11)		Sales	70,000
   Carriage inwards	500	Return outwards	2,500
   Wages	1,500	Wages outstanding	1,600
   Salaries	2,500	Commission	400
   Bills receivables	5,000	Discount	500
   Sundry expenses	500
   Drawings:
   Tambe	1,500
   Pitale	2,500
   Machinery	30,000
   Buildings	53,000
   Repairs to building	7,000
   Carriage outward	1,000
   Rent	700
   Insurance	2,300
   Cash in hand	6,000
   	2,42,000		2,42,000

   
   see in detail
   
   

5. Following is the trial balance of Hemant and Pritam sharing profits and losses equally. You are required to prepare Trading A/c and P & L A/c for the year ended 31^st March, 14 and balance sheet as on 31^st March, 2014 

   Trial Balance As on 31^st March, 2014 

   Particulars	Debit (Rs.)	Particulars	Credit (Rs.)
   Stock (01.04.07)	44,000	Sales	3,20,000
   Purchases	1,70,000	S. Creditors	40,000
   Return inward	10,000	R.D.D.	4,000
   Carriage	4,000	Bank loan	32,000
   Motive power	6,000	Capital A/c :
   Wages	56,000	Hemant	80,000
   Trade expenses	4,000	Pritam	80,000
   Sundry debtors	72,000
   Salaries	38,000
   Insurance	2,400
   Bills receivable	3,600
   Bad debts	5,000
   Plant & Machinery	60,000
   Furniture	16,000
   Advertisement	8,000
   Office rent	10,000
   (for 10 months)
   Drawings:
   Hemant	14,000
   Pritam	6,000
   Buildings	24,000
   Cash in hand	3,000
   Total (Rs.)	5,56,000	Total (Rs.)	5,56,000

   
   

   Adjustments:-

   a.    Closing stock on 31^st March, 2014 was valued at Rs. 72,000.

   b.    Depreciate Plant & Machinery and Building at 20% & 10% respectively.

   c.    Bills receivable was dishonoured for Rs. 2,000.

   d.    Goods withdrawn by Hemant amounting to Rs. 10,000 during the year were not recorded in the books.

   e.    Provide for bad debts Rs. 2,000 & Provide R.D.D. at 5% on debtors. 

   f.    Goods purchases included in closing stock amounting to Rs. 6,000 were not recorded in the books of accounts. 

   
   see in detail