(15) Given below is Trial Balance of M/s Pratiksha and Prerna on 31st March, 1984, Partners share Profit

and
Losses equally. From the following Trial Balance and additional information prepare Trading and Profit and Loss
Account for the year ended 31st March,1984, and the Balance Sheet as on that date.

Trial Balance as on 31-03-1984

Particulars Dr. Rs. Cr. Rs.

Pratiksha’s Capital A/c 50,000
Prerna’s Capital A/c 50,000
Stock 1-4-1983 40,000
Bills Receivable 10,000
Machinery 50,000
Purchases 80,000
Sales 1,18,000
Furniture 26,000
Return outwards 1,000
Prerna’s Drawings 4,000
Sundry Debtors 37,000
Sundry Creditors 54,000
Salaries 4,000
Wages 8,000
Insurance 5,000
General Expenses 8,000
Advertisement (for 3 years w.e.f. 1st Oct 83) 3,000
Interest and Commission 3,000
Pre-paid Taxes 2,000
Reserve for Doubtful Debts 1,000
2,77,000 2,77,000
Additional information :-

1) Stock on 31-03-1984 was worth Rs. 35,000 at cost while its market value was Rs. 40,000.
2) It is discovered on 31st March 1984 that the credit sales effected on the value Rs. 5,000 had not been
recorded in the books.
3) Depreciate machinery by 10%.
4) The reserve at 5% be created for doubtful debts on debtors.
5) Outstanding Expenses : Salaries Rs. 2,000, Wages Rs. 1,000.
6) Pratiksha is to get 1% commission on Gross Profit

(16) Given below is the Trial Balance of Arun, Pramod and Abhay on 31st March, 1985. Partners shares profits and
losses equally.

Trial Balance as on 31st March, 1985

Debit Balances Rs. Credit Balances Rs.

Stock on 1-4-1984 40,112 Capital Accounts :
Purchases 2,60,600 Arun 30,000
Sales returns 1,000 Pramod 24,000
Debtors 40,000 Abhay 14,000 68,000
Wages 11,800
Royalties 2,000 Sales 3,41,000
Machinery 60,000 Purchases Return 6,400
Furniture 10,000 Commission 1,234
Advertisements for 4 years 8,000 Provident Fund 11,000
Salary 6,000 Interest 1,200
Provident fund contribution 1,200 Reserve for Doubtful Debts 1,000
Provident Fund Investments 11,000 Creditors 40,000
Other Investments 12,000 Bills Payable 12,000
Insurance 1,000
 Cash 7,122
Drawings : Arun 4,000
Pramod 4,000
Abhay 2,000 10,000
4,81,834 4,81,834
Prepare Trading and Profit and Loss A/c for the year ending 31st March, 1985 and Balance Sheet as on that date
after making the following Adjustments :-
(1) Closing Stock : Cost Price – Rs. 50,000; Market Price – Rs. 57,000.
(2) Depreciate furniture by 15%, Machinery by 20%.
(3) Prepaid insurance Rs. 200.
(4) Goods amounting to Rs. 6,000 were sold and despatched on 16th March, 1985 but no entry was made in the
books.
(5) Write off bad debts Rs. 800 and provide for reserve for doubtful debts at 3% on debtors.
(6) Commission due but not received Rs. 1,000.
(17) Rohan and Mohan are in partnership sharing profits and losses in the ratio of 3:2. Following is the Trial
Balance as on 31st March, 1998.
Trail Balance as on 31st March, 1998
Particulars Dr. Rs. Cr. Rs.
Capital :
Rohan 1,50,000
Mohan 1,00,000
Drawings :
Rohan 5,000
Mohan 2,500
Buildings 2,00,000
Plant and Machinery 60,000
Cash at Bank 6,000
Purchase 4,75,000
Sales 7,55,000
Return Outwards 10,000
Return Inwards 15,500
Carriage 3,500
Opening Stock 1,10,000
Wages 60,000
Debtors 1,75,000
Creditors 1,26,000
Salaries 25,000
Postage and Telegram 2,000
Insurance 4,000
Bad Debts 2,500
Rent 1,000
Discount 500
R.B.D.D. 7,500
Unpaid Salaries 1,000
Trade Expenses 3,000
11,50,000 11,50,000
Adjustments :-
(1) Stock on 31st March, 1998 was valued at Rs. 80,000. (2) Prepaid Insurance Rs. 1,000. (3) Depreciate Building by
5% and Plant and Machinery by 10%. (4) Maintain Reserve for Doubtful debts @5% on debtors. (5) Goods worth Rs.
10,000 were destroyed by fire and insurance company had admitted claim for Rs. 8,000 only. (6) Partners are allowed
interest @ 5% p.a. on their capitals.
You are required to prepare Trading and Profit and Loss Account for the year ending 31st March, 1998 and the
Balance Sheet as on that date after considering above adjustments.
(18) From the following Trail Balance of Ram and Shyam sharing Profits and Losses in the proportion of 3:2. You are
required to prepare a Trading and Profit and Loss A/c for the year ending 31st march, 1989 and Balance Sheet as
on that date –

Trial Balance as on 31st March, 1989

Particulars Dr. Rs. Cr. Rs.

Goodwill 20,000
Plant and Machinery 80,000
Patents 10,000
Carriage 8,600
General Expenses 1,400
Electricity and Lighting 6,000
Debtors 24,000
Trade Expenses 600
Advertisements 3,000
Bank Loans @ 15% p.a. (taken on 1st July, 1988) 60,000
Capitals :
Ram 80,000
Shyam 60,000
Furniture 14,200
Wages 28,000
Purchases 59,000
Stock 20,800
Creditors 41,000
Printing and Stationery 4,200
Interest on Bank Loan 4,000
Land and Buildings 1,06,600
Commission 800
Sales 1,50,400
Discount 800
Cash in Hand 1,000
3,92,200 3,92,200
Adjustments :-

(1) Stock of goods on 31st March, 1989 was valued at Rs. 24,000 cost while its market price is Rs 26,000. (2)
Provide reserve for bad debts at 5% on debtors. (3) Plant and Machinery was to be depreciated at 10%. (4) Goods
worth Rs. 6,000 were sold on 27th March, 1989 by the invoice is omitted to be entered in the books. (5) Outstanding
wages Rs. 2,000 are to be provided. (6) Electricity and Lighting includes deposit Rs. 1,500 with Electricity Board.

(19) 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 on 31st March, 1991 and Balance Sheet as on that date, after
taking into consideration the additional information :-

Particulars Dr. Rs. Cr. Rs.

Opening Stock 60,000
Salary and Wages 4,500
Carriage 2,500
Purchases and Sales 60,000 1,25,000
Bills Receivable and Bills Payable 600 1,000
Rent 3,500
Reserve for bad and doubtful debts 800
Sundry Debtors and Creditors 18,000 16,000
Returns 1,000 500
Machinery 12,000
Travelling Expenses 3,000
Cash at Bank 1,000
Building 25,000
 Office Expenses 2,700
Advertisement for 3 years 3,000
Drawings :
Sudhakar 1,000
Prabhakar 1,500
Capital Accounts :
Sudhakar 20,000
Prabhakar 15,000
Insurance 600
Reserve Fund 21,600
1,99,900 1,99,900
Adjustments :

(1) Closing stock cost Rs. 25,000; Market value Rs. 30,000. (2) Partner 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 : Salary Rs. 1,000; Rent Rs. 500. (7) Provide Reserve for
bad and doubtful debts @5% on Sundry Debtors.

(20) Rajkumar and Ashokkumar are in partnership sharing profits and losses in the ratio of 3:2. Following is the
Trial Balance as on 31-03-1989.

Trial Balance as on 31-03-1989

Particulars Dr. Rs. Cr. Rs.

Opening Stock 20,000
Purchases 1,35,000
Returns Inwards 2,000
Debtors 20,000
Wages 4,000
Furniture 6,000
Machinery 30,000
Advertisement (4 years) 4,000
Salaries 3,000
Contribution to Provident Fund 600
Provident Fund Investments 5,500
Other Investments 6,000
Insurance 500
Cash in Hand 9,400
Capital Accounts : Rajkumar 15,000
Ashokkumar 10,000
Sales 1,85,000
Returns Outwards 5,000
Commission 200
Provident Fund 4,000
Reserve for bad debts 500
Creditors 20,000
Bills Payable 6,300
2,46,000 2,46,000

Adjustments :-

(1) Closing Stock on 31-03-89 was valued at Rs. 25,000. Market price Rs. 24,000.
(2) Depreciate furniture at 10% and Machinery at 20%.
(3) Prepaid insurance Rs. 100 and unpaid wages Rs. 200.
(4) Create reserve for bad and doubtful debts at 7.5% on debtors.
Prepare Trading and Profit and Loss A/c for the year ending 31st March, 1989 and Balance Sheet on that
date.
(21) From the following Trial Balance of Mr. Patankar and Kale, you are required to prepare a Trading A/c and
Profit and Loss A/c for the year ended on 31st March, 1992 and Balance Sheet as on that date after taking into
consideration the additional information given below :
Trial Balance as on 31st March,1992
Particulars Debit Rs. Credit Rs.
Stock (1-4-91) 40,000
Bills Receivable 8,800
Purchase and Sales 1,90,000 2,52,000
Returns 6,000
Salaries and Wages 10,000
Carriage Outward 1,400
Wages 24,000
Insurance 1,600
Discount 400
Postage 800
Debtors and Creditors 70,400 64,000
Furniture 20,000
Cash at Bank 13,800
Machinery 80,000
Printing and Stationery 1,600
8% Bank Loan (Taken on 1st October 1991) 52,000
Capitals : Patankar 60,000
Kale 40,000
4,68,400 4,68,400
Adjustments :-
(1) Closing Stock on 31-3-1992 was valued at Rs. 36,000. (2) Depreciate Machinery by 10%. (3) Outstanding :
Wages Rs. 2,000 and Salaries Rs. 900. (4) Provide for discount on Sundry creditors at 2% and R.D.D. at 5% on sundry
debtors (5) Bills Receivable includes a bill of Rs. 4,000 dishonoured on 30th March,1992 (6) On 30th September, 1991
a new machinery costing Rs. 25,000 was purchased.
(22) Following is the Trial Balance of Vinod and Vikas sharing profits and losses equally, you are required to
prepare Trading and Profit and Loss Account for the year ending 31st March, 1995 and Balance Sheet as on that
date after considering the adjustments given below :
Trial Balance as on 31st March, 1995
Particulars Debit Rs. Credit Rs.
Stock (1-4-94) 44,000
Purchases and Sales 1,70,000 3,20,000
Return Inward 10,000
Carriage 4,000
Motive Power 6,000
Wages 56,000
Trade Expenses 4,000
Debtors and Creditors 72,000 40,000
Salaries 38,000
Insurance 2,400
Postage 3,600
Commission 5,000 4,000
Plant and Machinery 60,000
Furniture 16,000
Advertisement 8,000
Office Rent (for 10 months) 10,000
Drawings :
Vinod 14,000
Vikas 6,000
 Bank Loan 32,000
Building 24,000
Capital A/c :
Vinod 80,000
Vikas 80,000
Cash in Hand 3,000
5,56,000 5,56,000
Adjustents :
(1) Stock on 31-03-1995 was valued at cost price Rs. 80,000 and at market price Rs. 72,000.
(2) Depreciate Plant and Machinery and Building at 20% and 10% respectively.
(3) Insurance is paid for one year ending on 30-06-1995.
(4) Goods withdrawn by Vinod amounting to Rs. 10,000 during the year were not recorded in the books.
(5) Bad debts were Rs. 2,000 and provide for R.D.D. at 5% on Debtors.
(6) Goods of Rs. 6,000 were purchased on 30-03-1995 and also included in Closing Stock, but not recorded in the
books of accounts.
(23) Pradeep and Prashant are partners sharing profits and losses in equal ratio. From the following Trial Balance
you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 1995 and Balance
Sheet as on that date after taking into consideration the additional information.
Trial Balance as on 31st March, 1995
Debit Balance Amount Rs. Credit Balance Amount Rs.
Land and Building 44,500 Capitals :
Plant (Addition on 1st January, 1995 9,750 Pradeep 60,000
Rs. 3,000) Prashant 40,000
Drawings : Sales 57,000
Pradeep 3,000 Sundry Creditors 9,500
Prashant 2,000 Reserve for Doubtful Debts 500
Opening Stock 26,000 Outstanding Expenses 500
Wages 5,000
Purchases 34,500
Carriage 700
Office expenses 2,270
Rent, Rates and Taxes 1,750
Insurance 480
Motor Van 20,000
Salaries 1,750
Bad Debts 950
Debtors 14,600
Cash at Bank 250
1,67,500 1,67,500
Additional Information :
(1) Closing stock on 31st March, 1995 was at cost price Rs. 40,000 and Market price Rs. 50,000.
(2) Provide 10% p.a. interest on capital.
(3) Charge interest on drawings :- Pradeep Rs. 100, Prashant Rs. 150.
(4) Depreciate plant at 10% p.a.
(5) Prashant’s withdrawal of goods worth Rs. 1,000 for personal use but not recorded in the books.
(24) Aba and Kaka are partners sharing profits and losses in the ratio 3:1. Following is the Trial Balance as on 31st
March, 1996.
Trial Balance as on 31st March, 1996
Particulars Debit Rs. Credit Rs.
Land and Building 55,000
Machinery 40,000
Salary and Wages 21,000
 Cash at Bank 45,000
Cash in Hand 1,100
Office Expenses 1,000
Motor Vans 18,000
Aba’s Capital 1,16,000
Kaka’s Capital 62,000
Carriage 5,000
Purchase and Sales 2,20,000 2,80,000
Returns 2,000 5,500
Bad debts 1,000
Debtors and Creditors 32,800 35,000
Rent 1,100
Bills Payable 33,000
Printing and Stationery 1,500
Travelling Expenses 5,500
Stock (1-4-1995) 30,000
Insurance 1,500
Discount 8,000
Advertisement 12,000
Furniture 30,000
5,31,500 5,31,500
Adjustments :
(1) Closing stock was valued at Cost Price Rs. 41,000; Market Price Rs. 42,000.
(2) Goods worth Rs. 5,000 taken over by Aba for personal use were not entered in the books of accounts.
(3) Goods worth Rs. 5,000 were destroyed by fire and Insurance company admitted a claim of Rs. 4,000.
(4) Outstanding Expenses : Rent – Rs. 100, Salary – Rs. 500.
(5) Provide depreciation at 10% on Machinery and 5% on Furniture.
(6) Provide Rs. 800 for Reserve for Doubtful Debts on Debtors.
Prepare Trading and Profit and Loss Account and Balance Sheet for the year ending 31st March, 1996.-

CURRENT ACCOUNT

(25) Dulal and Raja are partners sharing Profits and Loss equally, from the following Trial Balance of the firm,
prepare Trading Account, Profit and Loss Accounts for the year ending on 31-03-1976 and Balance Sheet as on that
date :-

Trial Balance as on 31-03-1976

Particulars Dr. Rs. Particulars Cr. Rs.

Stock 20,000 Capital Accounts : Dulal 15,000
Purchase 1,30,200 Raja 15,000
Sales Returns 500 Current Accounts : Dulal 2,000
Debtors 20,000 Raja 2,000
Wages 6,000 Sales 1,70,500
Royalties 1,000 Purchase Returns 3,200
Furniture 5,000 Commission 300
Machinery 30,000 Interest on P.F. interest 200
Advertisement (for 4 years) 4,000 Provident Fund 2,000
Salary 3,000 Reserve for doubtful debts 500
Provident Fund Contribution 500 Creditors 20,000
Provident Fund Investments 2,000
Insurance 500
Cash 3,000
Drawing : Dulal 3,500
Raja 1,500 5,000
 2,30,700 2,30,700

Adjustments :

(1) Closing Stock cost price Rs. 25,000. Market Price Rs. 30,000.
(2) Dulal has taken goods with Rs. 500 for his personal use.
(3) Goods amounted to Rs. 3,000 were sold and dispatched 27-03-1976 but no entry was made in the sales
book.
(4) Prepaid insurance Rs. 100.
(5) Depreciate furniture by 15% Machinery by 20%.
(6) Write of bad debts Rs. 400 and provide reserve for doubtful debts 3% on debtors.

(26) Usha, Uma and Urmila were partners, sharing Profit and Losses in the ratio 2:2:1 respectively. The Trial
Balance of their firm on 31st March, 1979 was as follows:

Trial Balance

Debit Balance Rs. Credit Balance Rs.

Opening Stock 8,000 Capital Accounts : Usha 20,000
Purchase 50,000 Uma 20,000
Wages 7,000 Urmila 10,000
Carriage Inwards 2,000 Current Accounts: Usha 4,000
Electricity and Insurance 1,900 Uma 2,550
Return Inwards 4,000 Urmila 500
Salaries 9,700 Sales 90,000
Bad debts 4,100 Rent Received 4,400
Bills Receivable 7,800 Creditors 30,000
Debtors 10,200 Sundry lncome 350
Building 30,000
Travelling Expenses 4,900
Cash at Bank 5,900
Prepaid Insurance 100
Vehicle 10,000
Audit Fees 700
Machinery 25,500
1,81,800 1,81,800
Prepare trading and Profit and Loss Account for the year ended 31st March, 1979 and the Balance Sheet as
on that date after making the following adjustments :-

(1) Goods worth Rs. 6,000 were destroyed by fire and Insurance company admitted the claim for Rs. 5,300. (2)
Outstanding Expenses were wages of Rs. 1,500 and Electricity Rs. 400. (3) Closing stóck was valued at Rs. 12,500. (4)
An advance of R9. 700 to a worker was included salaries. (5) Depreciate building by 5% and machinery by 10%.

(27) Rajaram and Sitaram were in partnership sharing Profit and Loss in the proportion: Rajaram 3/5 and Sitaram
2/5. The following balances were given as at 31st March, 1980.

Trial Balance

Particulars Dr Rs. Cr. Rs.

Rajaram's Capital 30,000
Sitaram's Capital 20,000
Rajaram's Current Alc. 5,000
Sitaram’s Current Alc. 2,000
Stock on 1st April, 1979 25,000
Purchases and Sales 55,000 80,000
Rates and Insurance 2,500
Debtors and Creditors 12,000 10,100
 Rent 2,000
Wages 8,000
Bills Payable 3,000
Motor Lorry 15,000
Furniture 10,000
General Expenses 500
Purchase Return 4,500
Bills Receivable 6,100
Cash at Bank 14,500
1,52,600 1,52,600
You are given the following additional information :

(1) On 31st March, 1980 the stock valued at Rs. 20,.000. (2) The cost of goods taken during the year by partners for
their own use was, Rajaram Rs. 3,000 and Sitaram Rs. 1,000. (3) Charge depreciation on Motor Lorry @ 15% per
annum and on furniture @ 5% per annum. (4) Rajaram is entitled to get salary Rs. 1500 per year. (5) Charge interest
on capital @ 6% per annum. (6) Provide Rs. 500/- for bad and doubtful debts. Prepare Final Accounts of the firm for
the year ended 31-03-1980.

(28) From the following Trial Balance of Hemant and Shantanu, prepare Trading and Profit and Loss A/c for the year
ending 31.03.1982 and Balance Sheet on the date :

Trial Balance

Debit Balance Amount Rs. Credit Balance Amount Rs.

Opening Stock 10,000 Bank Overdraft 35,000
Purchases 60,000 Creditor 22,000
Wages 7,000 Reserve for doubtful debts 700
Carriages 2,500 Sales 1,20,000
Salaries and Wages 4,900 Capitals : Hemant 32,000
Printing 2,700 Shanatnu 16,000
Advertisement 1,000 Current A/c : Hemant 3,000
Bad Debts 2,900 Shanatnu 2,000
Discount 2,500
Debtors 16,000
Bills Receivable 13,200
Buildings 30,000
Machinery 42,000
Cash in Hand 5,200
Motor Van 20,000
Drawings: Hemant 4,800
Shantanu 6,000
2,30,700 2,30,700
Adjustments :

(1) Depreciate Buildings by 5%,and machinery by 10%. (2) Outstanding expenses were printing Rs.200, wages Rs.
1,200. (3) Goods of Rs. 1,000 purchased on 31st March, 1982 were included in closing stock but were not recorded in
purchases book. (4) Cost price of closing stock was Rs. 20,500 while its market price was Rs. 25,000. (5) Reserve for
doubtful debts is to be maintained at Rs. 800. (6) Bill receivable included a dishonoured bill of Rs. 2,200.

(29) Shri Devchand and Shri Premchand were partners sharing profits and losses in the proportion Devchand 3/5
and Premchand 2/5. Interest on capital was allowed @ 5% per on annum but interest on drawings was ignored.
The following balance of accounts were given on 31st March, 1982.

Trial Balance 31-03-1982

Particulars Dr. Rs. Particulars Cr. Rs.

Opening Stock 10,000 Return Outwards 1,250
Sundry Debtors 14,100 Sundry Creditors 15,800
 Purchases 20,000 Sales 35,000
Wages 4,250 Reserve for Bad Debts 200
Salaries 1,350 Capital Alc : Devchand 35,000
Office Expenses 1,223 Premchand 10,000
Discount Allowed 650 Loan @9% (taken on 1-10-81) 2,000
Rent, Rates and Taxes 900
Plant and Machinery 15,000
Return Inwards 1,750
Land and Building 20,000
Cash at Bank 7,327
Current Account: Devchand 2,100
Premchand 600
99,250 99,250
You are given the following additional information :

(1) Closing stock was valued at Rs. 20,500.

(2) Wage unpaid Rs. 750 and outstanding salaries Rs. 657.
(3) Write off Rs. 100 as bad debts and provide 5% reserve for doubtful debts on sundry debtors.
(4) Provide Depreciation at 10% on plant and machinery and 5% on Land and Building.
(5) Rent. Rates and Taxes were prepaid Rs. 100.
(6) Charge interest on partners capital 5% p.a. but no interest charged on Drawing.
You are required to prepare Trading and Profit and Loss Alc. for the year ended 31st March, 1982 and a
Balance Sheet as on that date.

(30) ) Abhijit, Pawan and Vikram are Partners. The following balances were extracted from the books of a
partnership firm as on 31st March, 1994 :

Trial Balance as on 31st March, 1994

Particulars Amount Rs. Particulars Amount Rs.

Purchases 1,65,000 Capital Accounts:
Debtors 60,000 Abhijit's 24,000
Stock (1st April, 1993) 25,000 Vikram 12,000
Wages 20,000 Pawan 30,000
Salaries 8,000 Current Accounts:
Furniture 8,000 Vikram 2,000
Building 45,200 Pawan 3,000
Insurance 3,500 Sales 2,50,000
Loan at 6% to Vijay Reserved for Doubtful Debts 7,800
(1st December, 1993) 4,000 Interest on Investment 720
Rent and Taxes 2,000 Creditors 25,000
Investment 10,000 Bills Payable 14,000
Cash 8,820 Return Outwards 3,000
Bills Receivable 10,000
Abhijit's Current Account 2,000
3,71,520 3,71,520
Adjustments :

(1) Closing stock Rs. 13,000. (2) Partners are allowed a salary at Rs. 3,000 p.a. (3) Rs. 1,200 paid during the year as
building repairs wrongly debited to building account. (4) Depreciate furniture at 12% p.a. and Building at 10% p.a. (5)
Rs. 1,000 due from customer is not recoverable. (6) Create R.D.D. at 5% on debtors. Prepare Final Account for the
year ending 31st March, 1994.

(31) Mr. Kale and Mr. Gore were partners sharing profits and losses equally. The Trial Balance of their firm was as
under :

Trial Balance (As on 31st March, 2000)

 Debit Balance Rs. Credit Balance Rs.
Opening Stock 30,000 Capitals :
Wages 9,500 Mr. Kale 30,000
Purchases 52,500 Mr. Gore 60,000
Investments 10,000 Currents Accounts :
Postage 1,000 Mr. Kale 2,100
Printing & Stationery 25,00 Mr. Gore 1,400
Carriage Outwards 1,300 Bills Payable 7,500
Insurance 3,200 10% Bank loan (Taken on 1-10-1999) 10,000
Debtors 35,000 Bank Overdraft 6,500
Furniture 5,500 Creditors 25,000
Bad Debts 1,200 Sales 70,500
Carriage Inwards 1,800 R.D.D. 3,000
Cash in hand 5,400 Returns Outward 500
Machinery (Purchased on 1-07-1999) 32,000
Salaries (for 10 months) 15,000
Sundry Expenses 2,100
Bills Receivable 8,500
2,16,500 2,16,500
Adjustments:

(1) Closing stock was valued at Rs. 61,500. (2) Printing and Stationery included Rs. 500 paid for purchases of postal
stamps. (3) Depreciate Furniture and Machinery at 10% p.a. (4) 5% interest is to be allowed on Capital. (5) Of the
debtors Rs. 500 were bad and should be written off and R.D.D. should be maintained at 5%. (6) Goods of Rs. 7,500
were purchased on 30th March, 2000 and included in the closing stock but those purchases were not recorded in the
books of accounts.

Prepare Trading and Profit and Loss Account for the year ended on Balance Sheet as on that date.

(32) Vijay and Sanjay are Partners sharing profit and losses equally from the following Trial Balance and
adjustment. You are required to prepare a Trading and Profit and Loss Account for the year ended 31st March -
2014 and Balance Sheet as on that date :

Trial Balance (31st March 2014)

Dr. Balance Rs. Cr. Balance Rs.

Drawings : Vijay 5,000 Capital A/c: Vijay 70,000
Sanjay Sundry 4,000 Sanjay 60,000
Debtors 45,000 Current A/c : Vijay 4,750
Cash at Bank 22,800 Sanjay 3,800
Land and Building 75,000 Sundry Creditors 52,500
Opening Stock 38,200 Bank Overdraft 17,250
Import Duty 6,400 Sales 2,07,650
Audit Fees 37,500
Wages 4,150
Brokerage 2,400
Motor Van 40,000
Machinery 32,000
12% debentures 25,000
Factory Rent 2,250
Salaries 7,500
Purchases 1,02,500
4,15,950 4,15,950
Adjustments :

(1) Sales includes, Sale of machinery of Rs. 2,000 which is sold on 1st April 2013 (2) Depreciate machinery at 12.5%
and Motor van 8% p.a. (3) Stock on hand 31st March 2014 was valued at Rs. 41,000 (4) Debentures Purchased on 1st
October 2013. (5) Outstanding expenses were: Salary Rs. 1,500 and Audit Fees Rs. 1,250. (6) Vijay is entitled to get
salary at Rs. 400 per month and Sanjay is to get commission 4% on Gross Profit. (7) Interest on partner's capital at
5% p.a. is allowed while interest on drawings is charged 4% p.a.