G. S.

ColleGe of CommerCe, Wardha

XII (Assignment - 1)
FINAL ACCOUNTS OF PARTNERSHIP FIRM
Prob 1 :- From the following Trial Balance of M/s Ganesh and Kartik, you are required to prepare
Trading and Profit and Loss Account for the year ended 31 st March, 2011 and Balance Sheet as on that
date after taking into account the additional information. Trial Balance as on 31st March, 2011
Debit Balances Amt. Credit Balances Amt.
Opening Stock 18,000 Capital A/c - Ganesh 50,000
Kartik 30,000
Purchases 24,000 Sundry Creditors 10,000
Wages 2,400 Bills Payable 7,800
Carriage Inward 1,200 Rent received 2,200
Cash in hand 3,800 Sales 52,500
Insurance 1,200
Postage and Telegram 700
Sundry Debtors 21,000
Land and Building 40,000
Furniture 28,000
Travelling expenses 1,300
Discount allowed 900
Bad debts 2,000
Bills Receivable 8,000
1,52,500 1,52,500
Additional Information :- (1) Closing stock on 31 st March, 2011 was valued at 20,000 (2) Outstanding wages
was 1,000 (3)Depreciate Furniture by 10% (4) Insurance paid in advance 300 (5) Rs. 2,000 goods is freely
distributed for advertiesment as a sample (6) 4,000 Rs. Insurance goods bumed by fire But insurance company
accepted claim for Rs.3,000.

Prob 2 :- From the following Trial Balance and adjustments given below, your are required to prepare
Trading and Profit and Loss Account for the year ended 31St March, 2010 and Balance Sheet on as that
date of M/s Sonal and Minal. Trial Balance as on 31st March, 2010
Debit Balances Amt Credit Balances Amt
Opening stock 18,000 Capital A/c - Sonal 35,000
Cash in hand 2,400 Minal 35,000
Discount allowed 9 00 Sales 47,200
Salaries 1,300 Sundry Creditors 29,000
Land andBuilding 50,000 Bills Payable 7,000
Furniture 18,000 Bank Loan 20,000
Plant and Machinery 22,000 Discount received 1,500
Sundry Debtors 25,000 Purchaes Return 2,200
Interest paid 850
Bad debts 650
Printing Stationery 1200
Purchases 32,000
Wages 2,800
Sales Return 1.800
1,76,900 1,76,900
Adjustments:- (1) The stock on hand on 31St March, 2010 was valued at 29,000 (2) Outstanding salary was 700
(3) Wages paid advance to workers 1,200 (4) Depreciate Land and Building at 5% p.a. & Plant and Machinery at
10% p.a. (5) Write off 1,000 for further Bad debts and 5% bad deb.provideon debtors (6) Goods purchase and
recived during the year for Rs. 3,000 but not recored sold and sent to costumer during the year but not recored in
sale book. (7) 5000 Rs. goods sold and sent to costomer during the year but not ecorded in sales book.

Prob 3 :- Following is the Trial Balance of M/s Ram and Gopal as on 31St March, 2009
Trial Balance as on 31st March, 2009
Debit Balances Amt. Credit Balances Amt.
Sundry Debtors 28,000 Ram’s CapitalA/c 50,000
Postage and Telegram 1,000 Gopal’s Capital A/c 40,000
Machinery 30,000 Bills payable 4,000
Opening stock 32,000 Sundry Creditors 15,000
Furniture 25,000 Sales 1,18,700
Purchases 76,500 Bank Loan 15,000
Wages 12,000 Outstanding wages 3,000
Salaries 7,000
Carriage Inward 1,000
Carriage Outward 2,000
Rentpaid 1,500
Bad debts 1,700
Cash in hand 8,000
Motor Car 20,000
2,45,700 2,45,700
 ---2---
Profit sharing ratio of Ram and Gopal is 3:2. Prepare Trading and Profit and Loss Account for the year ended
31st March, 2009 and Balance Sheet as on that date after taking into consideration the following adjustments
(1) The closing stock is valued at cost price 45,000 while its market price is 50,000.
(2) Outstanding expenses were - salaries 800 , Rent 500.
(3) Provide Depreciation on Machinery at 15% and Furniture at 10%. p.a.
(4) Goods costing 3,000 distributed as free sample.
(5) Interest on Bank loan is payable 1,500.
(6) 5% p.a. Interest provided on partners capital.
(7) Goods drawing by partners for personal use for Rs.2,000 each.

Prob. 4 :- Raja and Rani are partners of ‘Maharaja Traders’. They decided to share profits and losses in the
ratio of 3:2. From the following Trial Balance and additional information, you are required to prepare Trading and
Profit Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date.
Trial Balance as on 31st March, 2013
Particulars Debit Amt. CreditAmt.
Purchases and Sales 90,500 1,20,300
Sundry Debtors and Creditors 34,000 45,500
Bills Receivable & Bills Payable 35,000 32,000
Opening stock 34,600 _
Land and Building 1,20,000 _
Work’s Manager Salary 4,700 _
Motive Power 5,500 _
Plant and Machinery 80,000 _
Audit fees 3,400 _
Salaries and Wages 14,500 _
Trade expenses 2,100 _
General expenses 1,800 _
Wages and salaries 20,700 _
Loose Tools 10,000 _
Prepaid rent 4,500 _
Capital A/c- Raja _ 1,50,000
Rani _ 1,00,000
Raja’s loan A/c _ 11,000
Commission received _ 2,500
4,61,300 4,61,300
(1) Stock on hand on 31st March, 2013 was cost 42,000 and its market price was 45,000.
(2) Audit fees paid in advance of 1,500.
(3) Motive power includes 3,000 paid for deposit of power meter.
(4) Goods worth 2,500 taken by Raja for his personal use are not entered in the books of account.
(5) Bills payable dishonoured of 2,500.
(6) Depreciate plant and machinery at 5% p.a. and loose tools at 10% p.a.
(7) Commission includes, pre-received amount of 1,000.
(8) Rs. 2,000 is bad debt and 5% B.d. reserve is provided on Debtors.

Prob 5 :- Mr. Ajit and Mr. Sujit are partners of the firm sharing profits and losses in the ratio of 3:2. Their Trial
Balance as on 31st March, 2012 was given below. Prepare Trading and Profit and Loss Account for the year
ended 31 March, 2012 and Balance Sheet as on that date.
Trial Balance as on 3l March, 2012
Particulars Debit Amt Credit Amt
CapitalA/c - Ajit 50,000
Sujit 40,000
Purchases and Sales 62,750 1,22,000
Sundry Debtors and Creditors 24,000 47,000
Interest 2,900 2,000
Opening stock 21,500 _
Wages 8,500 _
Land and Building 75,000 _
Loose Tools 15,000 _
Power, Fuel and Oil 2,750 _
Export duty 1,200 _
Salaries 10,800 _
Electricity charges 1,400 _
Investments 24,000 _
Reserve fund _ 8,000
Ajit’s loan A/c _ 10,000
Bank overdraft _ 11,000
Patents 32,000 _
Administration expenses 4,300 _
Cash in hand 2,000 _
Heating and lighting 1,900 _
2,90,000 2,90,000
 ---3---

Adjustments :- (1) Stock on hand on 3l.3.20l2 was valued at 17,000.

(2) 1/8th of the patents are to be written off.
(3) Goods of 7,000 destroyed by fire and insurance company admitted a claim of 6,100.
(4) Rs.1,000 received on account is commission wrongly included in Ajay’s loan account.
(5) Provide 8% Depreciation on Land and Building and 5% on Loose Tools.
(6) Outstanding expenses were: Salaries 1,200 Electricity charges 1,800.
(7) Our customer, Mr. Rakesh failed to pay his due of 1,000.
(8) Goods freely distributed as a sample for advertiesment Rs. 4,000.
(9) If Goods burn by fire of Rs. 5000 Insurance Company Accepted claim for Rs. 4000

Prob 6 :- From the following Trial Balance of M/s Ajay and Viajy, you are required to prepared Trading and
Profit and Loss Account for the year ended 31St March, 2009 and Balance Sheet as on that date.
Trial Balance as on 31 March, 2009
Particulars Debit Amt Credit Amt.
Capital Ales - Ajay 60,000
Vijay 35,000
Purchases and Sales 46,700 85,000
Sundry Debtors and Creditors 28,000 25,000
Bills Receivable and payable 5,000 6,000
Commission 4,600 1,800
Opening stock 18,000
Wages 9,900
Investment 13,500
Postage and Telegrams 3,600
Insurance 1,200
Plant and Machinery 40,700
Furniture 18,000
Cash in band 2,500
Carriage inward 3,200
Bad debts 400
Prepaid Rent 7,000
Salaries 10,500
2,12,800 2,12,800
Adjustments:- (1) The closing stock is valued at 31,000.
(2) Outstanding expenses were - wages 1,400, salaries 800.
(3) Depreciate Plant and Machinery by 10%.
(4) Insurance at 500 is paid in advance.
(5) Provide for further bad debts of 1,500 and 10% bad debt reserve for debtors.
(6) Commission due but not received 1,200
(7) Rs. 1,500 is Receivable bill is dishonured
(8) Unrecorded sale 2,000 Rs.

Prob 7 :- Sanjay and Sudhir are partners sharing profit and losses in the ratio 3:2. The Trial Balance of the firm
on 31st March, 2010 was as follows: Trial Balance as on 3l March, 2010
Particulars Amt Particulars Amt.
Opening stock 20,000 Capital A/cs - Sanjay 40,000
Purchases 30,000 Sudhir 30,000
Debtors 12,000 Sales 70,000
Wages 5,000 Sundry Creditors 21,000
Salaries 10,000 Bills payable 20,000
Land and Building 30,000 Discount 5,000
Plant and Machinery 25,000 Outstanding Rent 1,500
.Furniture 16,000
Advertisement (for 2 years) 6,000
Bills Receivable 8,000
Insurance 2,000
Drawings - Sanjay 2,000
Sudhir 3,000
Cash in hand 5,500
Rent 10,000
Power and Fuel 3,000
1,87,500 1,87,500
Adjustments:-
(1) Stock on hand on 31st March, 2010 was at Rs.35,000. (2) Write off Rs.2,000, for further Bad debts and
Maintain R. D. D. at 5% on debtors. (3) Depreciate Land and Building at 5% and Machinery at 10%. (4)O u t -
standing expenses were wages Rs.2,000 and salary Rs.1,000. (5) Credit purchases amounted to Rs.4,000 were not
recorded in the books of accounts. (6) Provide interest on Partners Capital at 5% p.a. (7) Uninsured goods cost
price Rs. 5,000 burn by fire. (8) Goods drawing by partners for personal use Sanjay Rs. 4,000 Sudhir Rs. 3,000.
From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended
31st March, 2012 and Balance Sheet as on that date. .