From the following Trail Balance and adjustment of M/s Apeksha and Pratiksha; you are required to prepare Trading and Profit and Loss account, for the year ended $31^{s t}$ March, 2013 and Balance Sheet as on that date:
Adjustment:
(1) The closing stock is valued at Rs. 31,000.
(2) Outstanding wages Rs. 1,400.
(3) Depreciate furniture at 10% p.a.
(4) Insurance Rs. 500 is paid in advance.
(5) Provide for further bad debts of Rs. 1,500.
(6) Goods worth 2,000 withdrawn by Apeksha for her domestic use but not recorded in the books of account.

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Solution

Trading and Profit and Loss and Appropriation A/c

For the year ending 31.03.2013

Particulars

Amount

Particulars

Amount

To opening stock

18000

By sales

85000

To purchases 46700

44700

By closing stock

31000

Less: drawings 2000

To wages 9900

Add: O/S 1400

11300

To gross profit c/d

42000

116000

116000

To postage and telegram

3600

By gross profit b/d

42000

To Insurance 1200

Less: pre-paid 500

700

To carriage

3200

To bad debts 400

Add: bad debts 1500

1900

To salaries

10500

To dep. On furniture

1800

To Net profit

20300

42000

42000

To Partner’s capital A/c:

By net profit

20300

Apeksha

10150

Pratiksha

10150

20300

20300

Balance Sheet

As at 31.03.2013

Liabilities

Amount

Assets

Amount

Capital A/c:

Plant and machinery

40700

Apeksha 60000

Furniture 18000

Add: net profit 10150

Less: depreciation 1800

16200

Less: drawings 2000

68150

Pre-paid rent

7000

Pratiksha 35000

Sundry debtors 28000

Add: net profit 10150

45150

Less: bad debts 1500

26500

Bills receivable

9600

Sundry creditors

25000

Investment

13500

Bills payable

7800

Cash in hand

2500

Outstanding wages

1400

Closing stock

31000

Pre-paid insurance

500

147500

147500

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Similar questions

From the following Trial Balance of M/s Andrew Traders, you are required to prepare Trading and Profit Loss Account for the year ending 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Debit Amount Rs	Credit Amount Rs
Capital		35,000
Drawings	8,000
Purchases and Sales	29,000	56,000
Opening Stock	10,000
Carriage	1,000
Salaries	3,500
Rent	1,200
Rates and Taxes	200
Sundry expenses	3,000
Sales Return	1,500
Bad debts	800
Interest received		200
R.D.D.		1,500
Discount received		300
Debtors and Creditors	21,400	7,000
Furniture	3,000
Machinery	5,000
Cash in hand	200
Cash at Bank	5,000
Wages	7,200
Total	1,00,000	1,00,000

Adjustment:

1) Closing stock was valued Rs 19,000

2) Write off Rs 1,400 for Bad debts and provide 5% R.D.D. on debtors.

3) Depreciate Machinery by 10% and Furniture by 5% p.a.

4) Rent included Rs 500 paid for house rent of proprietor.

5) Salary Rs 500 and Wages Rs 800 were outstanding.

From the following Trial Balance of M/s Manali Traders, you are required to Prepare a Trading and Profit & Loss Account for the year ended 31st March, 2011 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2011
Particulars	Amount Rs	Particulars	Amount Rs
Drawings	3,000	Capital	85,000
Opening Stock	10,000	Creditors	45,000
Purchases	82,400	Sales	1,44,000
Office Salary	6,000	R.D.D.	1,000
Royalty	2,000	Return outward	2,400
Trade Expenses	1,600	Bills Payable	5,000
Advertisement	5,200	Outstanding wages and salaries	2,600
Wages and Salaries	10,400
Cash in hand	8,000
Sundry Debtors	51,000
Bad debts	400
Investment	16,000
Motor Car	30,000
Furniture	10,000
Office rent	3,400
Plant and Machinery	30,000
Freehold Property	10,000
Bills Receivable	4,000
Interest	1,600
Total	2,85,000	Total	2,85,000

Adjustment:

1) Closing stock was valued at Rs 15,000.

2) Depreciate freehold property at 10% and Motor Car by 25% p.a.

3) Write of Rs 1000 as bad debts and provide 5% R.D.D. on Sundry Debtors and Provide 2% for discount on debtors and creditors.

4) 10% Interest on Investment is accrued for 6 months

5) Office Salary Rs 1,000 paid in advance.

Following is the Trial Balance of Komal Jaggi as on 31st March 2010 Prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Amount Rs	Particulars	Amount Rs
Stock on 1-4-2009 Purchases Return inward Wages Insurance Salaries Rent & Taxes Bad debts Discount allowed Machinery Buildings Sundry debtors Advertisement Carriage inward Cash in hand Cash at Bank Office expenses Drawings	50,000 1,19,000 3,000 7,750 1,500 9,400 5,000 1,000 2,000 25,000 55,000 70,000 10,000 2,350 6,000 8,000 2,000 4,000	Sales Return outward Discount received Sundry Creditors Capital Bank Loan Bills Payable	1,90,000 1,500 2,500 52,000 1,00,000 30,000 5,000
Total	3,81,000	Total	3,81,000

Adjustment:

1) On 31st March 2010 the stock was valued Rs 30,000

2) Outstanding Wages Rs 1,250 and Rent Rs 1,000

3) Insurance was paid for the year ending 30th Sep. 2010

4) Depreciate Machinery 10% and Buildings by 4% p.a.

5) Provide R.D.D. at 5% on Sundry Debtors.

Q. From the following figures prepare the Trading and Profit and Loss Account for the year ended 31st March, 2012 and the Balance Sheet as at that date:-

Particulars	(₹)	Particulars	(₹)
Stock (1st April, 2011)	75,000	Sundry Debtors	82,000
Purchases	8,00,000	Loan from X	10,000
Sales	12,00,000	Interest on X Loan	1,500
Motor Car	1,50,000	Furniture	20,000
Car Expenses	42,000	Land and Building	2,00,000
Rent	5,500	Capital	2,50,000
Salaries	35,200	Sundry Creditors	91,300
Bad Debts	1,500	Returns Inward	7,500
Provision for bad debts	8,100	Returns Outward	6,000
Commission (Cr.)	4,600	Cash in hand	16,400
Wages	1,25,000
Insurance	8,400

Adjustments:-
(i) Commission include ₹ 1,600 being commission received in advance.
(ii) Write off ₹ 2,000 as further Bad-debts and maintain Bad-debts provision at 5% on debtors.
(iii) Expenses paid in advance are: Wages ₹ 5,000 and Insurance ₹ 1,200.
(iv) Rent and Salaries have been paid for 11 months.
(v) Loan from X has been taken at 18% p.a. interest.
(vi) Depreciate furniture by 15% p.a. and Motor Car by 20% p.a.
(vii) Closing Stock was valued at ₹ 60,000.

Following is the Trial Balance of M/s Tejas Traders Pune, you are required to Prepare Trading, Profit & Loss Account for the year ending 31st March, 2009 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2009
Particulars	Amount Rs	Particulars	Amount Rs
Carriage Opening Stock Loose tools Salaries Wages Printing and stationery Discount Omission Power and fuel Vehicle Bad debts Building Debtors Goodwill Cash at Bank Machinery Investment Purchases Drawings	2,000 31,000 2,000 2,100 1,000 2,000 500 1,000 4,500 28,000 1,900 35,000 20,000 2,000 10,800 10,000 12,000 61,000 5,000	Capital Sales Interest Bills payable Commission R.D.D. Creditors Outstanding salary	80,000 1,18,000 2,200 5,000 3,000 800 22,000 800
Total	2,31,800	Total	2,31,800

Adjustment:

1) Stock on 31st March, 2009 was valued at Rs 40,000.

2) Provided depreciation at 10% p.a. on Building and Vehicle

3) Interest Outstanding on investment Rs 800.

4) Provide 5% R.D.D. on debtors.

5) Goods of Rs 2,500 were distributed as free sample.

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Particulars	Amount	Particulars	Amount
To opening stock	18000	By sales	85000
To purchases 46700	44700	By closing stock	31000
Less: drawings 2000
To wages 9900
Add: O/S 1400	11300
To gross profit c/d	42000

	116000		116000

To postage and telegram	3600	By gross profit b/d	42000
To Insurance 1200
Less: pre-paid 500	700
To carriage	3200
To bad debts 400
Add: bad debts 1500	1900
To salaries	10500
To dep. On furniture	1800
To Net profit	20300

	42000		42000

To Partner’s capital A/c:		By net profit	20300
Apeksha	10150
Pratiksha	10150

	20300		20300

Liabilities	Amount	Assets	Amount
Capital A/c:		Plant and machinery	40700
Apeksha 60000		Furniture 18000
Add: net profit 10150		Less: depreciation 1800	16200
Less: drawings 2000	68150	Pre-paid rent	7000
Pratiksha 35000		Sundry debtors 28000
Add: net profit 10150	45150	Less: bad debts 1500	26500
		Bills receivable	9600
Sundry creditors	25000	Investment	13500
Bills payable	7800	Cash in hand	2500
Outstanding wages	1400	Closing stock	31000
		Pre-paid insurance	500

	147500		147500