Question

Jaya and Maya are partners in a firm sharing profits and losses in the ratio of 2 : 3 respectively. With the help of the trial balance and adjustments given below, you are required to prepare their Trading, Profit and Loss Account for year ended ${31}^{st}$ March, 2013 and the Balance Sheet as on that date:
Adjustments:
(1) Closing stock was valued at Rs. 22,600.
(2) Purchases include purchase of furniture of 10,000 made on $1^{st} October, 2012.
(3) Depreciate land and buildings at 10% p.a.; plant and machinery at 10% p.a. and furniture at 20% p.a.
(4) Create R.D.D. at %% on sundry debtors.

Answer 1

Trading and Profit and Loss and Appropriation A/c

For the year ending 31.03.2013

Particulars	Amount	Particulars	Amount
To opening stock	32800	By sales	194000
To purchases 109000		By closing stock	22600
Less: furniture 10000	99000
To wages and salaries	28600
To carriage inwards	3700
To gross profit c/d	52500
	216600		216600
To new RDD 4400		By gross profit b/d	52500
Less: old RDD 2000	2400	By commission	5500
To insurance	3700	By gross loss c/d	10000
To rent, rates and taxes	14600
To office expenses	7300
To depreciation:
Furniture	4000
Land and buildings	30000
Plant and machinery	6000
	68000		68000
To gross loss b/d	10000	By Partner’s current A/c:
		Jaya (2/5)	4000
		Maya (3/5)	6000
	10000		10000

Balance Sheet

As at 31.03.2013

Liabilities	Amount	Assets	Amount
Capita A/c:		Land and buildings 300000
Jaya	200000	Less: depreciation 30000	270000
Maya	250000	Plant and machinery 60000
Current A/c:		Less: depreciation 6000	54000
Maya 9100		Furniture 15000
Less: 6000	3100	Add: purchased 10000
Sundry creditors	45600	Less: depreciation 4000	21000
		Sundry debtors 88000
		Less: RDD@5% 4400	83600
		Cash in hand	4700
		Cash at bank	40200
		Closing stock	22600
		Drawings A/c:
		Jaya	500
		Maya	1500
		Current A/c:
		Jaya	600
	498700		498700