Question

Ayub and Amit are partners in M/s amit Papers sharing profits and losses equally. Following trial balance is prepared from the books of account as at 31st March, 2018.
Prepare Trading Account, Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31st March, 2018 and Balance Sheet as at that date accounting the following adjustments:
(i) Stock as at 31st March, 2018 was $Rs.50,000$;
(ii) Rent is $Rs.10,000$ per month;
(iii) Depreciate Furniture and Fixture and Computers @ $20\%$ p.a., Machinery @ $10\%$ p.a.; and
(iv) Interest on Capitals is allowed @ $6\%$ p.a.

Answer 1

Trading Profit and Loss and Profit and Loss Appropriation Account

Particulars	Amount	Particulars	Amount
To opening stock To purchases 7,60,000 Less:Returns (10,000) To GP To salary & wages To rent 1,10,000 Ad;O/s 10,000 To general exp To depreciation Furniture & fix computers machinery To net profit To interest on capital Ayub - 24,000 Amit-23,100 To profit transferred to Ayub's capital A/c-6950 Amit's capital A/c-6950	45,000 7,50,000 4,80,000 1,80,000 1,20,000 35,000 10,000 44,000 30,000 61,000 47,100 13,900	By sales 12,50,000 Less: returns (25,000) By closing stock By GP b/d By Net profit	12,25,000 50,000 4,80,000 61,000
Total	61,000	Total	61,000

BALANCE SHEET FOR THE YEAR 31ST MARCH,2018

Liabilities	Amount	Assets	Amount
Capital A/cs Ayub 4,00,000 Add:interest on capital 24,000 Share of profit 6950 Less:drawings (60,000) Amit 3,85,000 Add:interest on capital 23,100 share of profit 6950 Less:drawings (50000) Sundry Creditors Rent outstanding	3,70,950 3,65,050 90,000 10,000	Computers 2,20,000 Less:-Depreciation (44,000) Furniture 50,000 Less:Depreciation (10,000) Machinery 3,00,000 Less: Depreciation (30,000) Sundry Debtors Closing stock Cash in Hand Cash at bank	1,76,000 40,000 2,70,000 2,00,000 50,000 25,000 75,000
Total	8,36,000	Total	8,36,000