S.Y.

B Com Accounts: Partnership Final Accounts 2017-18

Q1)
The trial balance of Arun and Pandit on 31st December, 2011 was under:

Dr. Cr.
Rs. Rs.
Stock (1.1.2011) 70,000
Purchases 1,80,000 3,72,000
Goodwill 25,000
Wages paid (for the year 31.12.2011) 15,000
Wages paid (for the year 2010) 8,000
Capitals :
Arun 80,000
Pandit 60,000
Freehold Land 30,000
Factory Building 71,000
Plant 48,000
Motor Vehicles 12,000
6% Debentures on ‘X’ ltd (Purchase on 1.1.2011) 50,000
1,500
Interest received on above
Debitors and Creditors 90,000
Salaries 28,000
Office Expenses 6,000
Manufacturing Expenses 18,000
Cash at Bank 22,500
Drawings:
Arun 5,000
Pandit 6,000 1,00,000
Loan 9% ( Taken on 1/7/2011) ______- 6,76,500
6,75,500

Adjustments to be made are:

1. Depreciate Building by Rs.2500, Plant by Rs.4,000 and Motor Vehicles by Rs.1,500.
2. A provision of 5% is required to be made for doubtful debts.
3. Office Expenses include pre-paid insurance Rs 1,000.
4. Interest on capital and drawings is to be at 6% p.a.
5. Pandit is to get a salary of Rs 1,000 p.m.
6. Unpaid wages Rs 500 and salaries Rs .1,000 outstanding.
7. Stock on 31st December, 2011; was Rs 65,000.
8. Profits are to be shared equally.
Prepare the Final Accounts of the firm assuming that the partners maintain their Capital Accounts as
Fluctuating.

Q2)
Sanjay, Rajesh and Anand carried on a retail business in partnership. The partnership agreement provides
that:
1. The partners are to be credited at the end of each year with salaries of Rs. 10,000 to Sanjay and Rs.
5,000 each to Rajesh and Anand, and with interest at the rate of 9% p.a. on the balance at the credit
of their respective accounts at the commencement of the year.
2. No interest to be charged on drawings.

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S.Y.B Com Accounts: Partnership Final Accounts 2017-18

3. After charging salaries and interest on capital, profits and losses are to be divided in the following
ratio:
Sanjay 50%, Rajesh 30% and Anand 20%
The Trial Balance of the firm as at 31st December, 2011 was as follows:
Dr. Cr.
Rs Rs
Capital Accounts :1.1.2011:
Sanjay 80,000
Rajesh 50,000
Anand 30,000
Current Accounts: 1.1..2011:
Sanjay 16,000
Rajesh 12,000
Anand 8,000
Sales 4,65,000
Trade creditors 22,000 37,000
Furniture and fittings 60,000
Freehold premises (Purchased during the year) 45,000
Leasehold Premises 25,000
Addition & Alteration to Leasehold Premises (1.1.2011) 2,80,000
Purchases 42,000
Stock as on 1.2.2011 64,000
Salaries and Wages 45,200
Office and Trade expenses 10,500
Rent, Rates and Insurance 3,500
Professional Charges 20,600
Debtors 500
Provision for Doubtful Debts 43,700
Balance at Bank
Drawings : 17,000
Sanjay 11,000
Rajesh 9,000 ________
Anand 6,98,500 6,98,500

You are given the following additional information:

1. Stock on 31st December, 2011 was valued at Rs. 36,000.

2. A debtor of Rs.600 is to be written off and provision against the remaining debtors should be 5%.
3. Provide for the following outstanding expenses as on 31st December, 2011.
Office and Trade Expense: Rs.2,400 : Salaries and wages : Rs.6,000.
4. Rates prepaid as on 31st December, 2011 : Rs.2,500.
5. Depreciate Furniture and Fittings by 10%.
6. Professional Charges include Rs. 2,500 Fees paid in respect of the acquisition of the lease hold
premises, whose fees are to be capitalized.
7. The cost and the additions alterations to the lease hold premises are to be written off over twenty five
years, commencing on 1st January, in the year in which the premises were acquired.
You are required to prepare:

a. The Trading and Profit & Loss Account for the year ended 31st March, 2011.
b. The Balance sheet as on that date.
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S.Y.B Com Accounts: Partnership Final Accounts 2017-18

c. Partner’s Current Account.

Q3)
Ajit and Bishansing were in partnership in a retail business sharing profit in the proportions of 3:2. As from
1st January, 2011; they admitted Chandu into partnership giving him one –fifth of the profits. Chandu
brought in Rs. 20,000 in cash of Rs. 6,000 were considered as being in payment for his share of goodwill
and remainder as his capital.
The following Trial Balance was extracted from the books as on 31st December,2011.
Dr. Cr
Rs. Rs.
Purchase and Sales 1,71,625 2,62,650
Returns 5,250 4,125
Reserve for doubtful debts 5200
Sundry Debtors and Creditors 40,200 25,525
Bills Receivable and Bills Payable 20,070 11,950
Stock (1st January2011) 39,725
Wages 17,175
Salaries 9,795
Furniture 5,000
Alterations to shop 15,500
Postage, Insurance and Stationery 3,240
Trade Expenses 2,690
Rent, Rates and Taxes 4,200
Bad Debts 400
Loan at 5% to Dilip made on 1.2.2011 6,000
Prepaid Insurance 240 1,200
Outstanding Wages 900
Rent accrued but not paid
Capital Accounts( 1.1.2011) 15,000
Ajit 10,000
Bishansingh 20,000
Cash paid by Chandu on 1.1.2011
Current Account : 5,000
Ajit 4,000
Bishansingh 2,000
Chandu _______
4,400 3,56,550
Cash in hand 3,56,550
Total

You are required to prepare the firm’s Trading and Profit & Loss Account for the year ending 31 st
December, 2011 and Balance Sheet as on that date having regard to the following information:

a) Stock at the end was Rs.20,000 .

b) Sundry Debtors include item of Rs.300 for goods supplied to Bishansingh & item of Rs. 1,000 due
from customer for account of sales, who has become insolvent.
c) Depreciation on Furniture is to be charged at 10% per annum.
d) Reserve for doubtful debts is to be maintained at 5% on the sundry debtors.
e) Goods to the value of Rs.800 have been destroyed by fire and the Insurance Co. has admitted the
claim for Rs.600 only.
f) Bills Receivable includes only a dishonoured bill for Rs. 1,100.
g) One –fifth of the alterations to the shop are to be written off.
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S.Y.B Com Accounts: Partnership Final Accounts 2017-18

Q4)
Mukesh and Umesh are partners sharing profit 3/4 and 1/4 respectively. On 1 st July, 2011; Unmesh joined as
1/6 partner for Rs. 28,000 Capital and Rs. 6,000 premium for goodwill. From 1st July, 2011 each partner is
to get salary @ Rs 6,000 p. a. and existing partners guarantee a minimum of Rs.10000 p. a (including profit
share and salary) to Unmesh.

The Trial balance for the first year ending on 31st December, 2011 is as given below:

Dr. Cr.
Rs. Rs
Captial/Drawings
Mukesh 38,500 1,35,000
Umesh 21,500 45,000
Unmesh 4,000
Suspense : Cash paid by Unmesh 34,000
Purchases 7,35,000
Salaries(including partners salary upto November) 82,500
Furniture(cost) 32,000
Motor vehicles
Acquired on 1.1.2011 28,100
Acquired on 31.10.2011 6,900
7,50,000
Sales(to June Rs.5,00,000)
General Expenses 33,760
86,900 1,22,260
Debtors/Creditors ________
Bank 17,100
10,86,260 10,86,260

Sales yielded at Gross Profit of 20% on sales until October .On 31st December, 2011; Stock Rs. 1,33,750.
Accrued expenses Rs. 3,540, payment Rs.800. To be withheld from income tax Rs. 6,300.
(Rs. 2,000 Mukesh, Rs. 1,800 Umesh and Rs.2, 500 Unmesh)
Depreciate Furniture 10%, Vehicles 20% p.a. on cost.
Prepare Trading and Profit & Loss Account and Partners Capital Accounts for the first year.

Q5)
Lalchand was carrying on business as a wholesale businessman. He closes his accounts by 31 st March every
year. Lakhan was his manager on a monthly salary of Rs. 1,500 till 30 th September, 2011 and on 1st October,
2011 it was agreed that he will be admitted as a partner with 1/3 share in the Profit and Losses without any
salary.

The Trial Balance as on 31st March, 2012 was as follows:

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S.Y.B Com Accounts: Partnership Final Accounts 2017-18

Dr. Cr.
Rs Rs
Lalchand ’s Capital 35,000
Lalchand’s Drawings 18,000
Furniture 9,000
Motor car 15,000
Stock (1.4.2011) 30,000
Debtors 14,000
Bank balance 15,000
Cash 900
Purchase (1,00,000 till 30.9.2011) 2,10,000 3,30,000
Sales 7,700
Creditors
Salaries 15,000
Selling Expenses 33,000
Audit Fees 2,400
Rent 6,400 _______
Rent Advances 4,000 3,72,700
3,72,700

Additional Information :
a) Furniture is to be depreciated at 10% and Motor car at 20%
b) Rent which was Rs.500 p.m. till 30th November, 2011 was increased to Rs.600 p.m. from 1 st
December, 2011.
c) Sales during the first six months off the year were Rs.1,10,000. Stock on 30 th September, 2011 was
Rs. 50,000 and on 31st March, 2012 was Rs.20,000.
Prepare Trading and Profit & loss Account in columnar from showing the share of the partners and the
Balance Sheet as on 31st March, 2012.

Q6)
Following is the Trial Balance of M/s Dilip, Dinesh & Deepak as on 31.12.2011.

Rs. Rs.
Drawings Captial Accounts:
Dilip 16,000 Dilip 48,000
Dinesh 16,000 Dinesh 48,000
Deepak 16,000 Deepak 48,000
Purchases 2,08,000 Sales 3,68,000
Returns 3,200 Returns 2,400
Stocks(1.1.2011) 32,000 RDD 12,000
Staff Salary 36,000 SBI loan 27,000
General Expenses 16,000 Creditors 1,02,000
Sundry Expenses 6,000 Bills Payable 3,600
Bad Debts 2,800 Loan from Friends 8,000
Carriage 6,000
Carriage on sales 9,000
Debtors 1,34,000
Bills Receivable 4,000
Bank Balance 11,200
Cash 2,800

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S.Y.B Com Accounts: Partnership Final Accounts 2017-18

Investment 20,000
Land & Building 80,000 _______
Machinery _48,000 6,67,000
6,67,000

On 1st July , 2011 : Dilip expired . Following adjustments are to be considered:

1. Goodwill to be valued at Rs.1,20,000.

2. Machinery worth Rs.96,000 was purchased on 31st March, 2011 but it was not recorded in the books.
3. Amount due to Deepak should be treated as Mrs. Deepak’s Loan at 20% p.a.
4. Closing stock is valued at Rs.56,000 it cost was Rs.60,000.
5. RDD should be kept at Rs.6,000.
6. Depreciate Machinery by 10% and Building by 15% p.a.
7. 10% interest is to be allowed on partner’s capitals.
8. Each partner should be allowed salary @ Rs. 4,000 p.a.
Prepare Trading and Profit & Loss Account for the year ended 31 st December, 2011 and Balance Sheet as on
that date.

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