PRACTICAL PROBLEMS

Asha and Usha were partners sharing profits and losses in the ratio of 2:1. Prepare their statement Profit or Loss for the year ended 31^st March, 2012 from the following statement of Affairs as on 31^st March, 2011.

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

33,000

Cash at Bank

6,000

Bills Payable

9,000

Cash in Hand

2,000

Capitals:

62,000

Building

41,000

Asha

32,000

Machinery

21,000

Usha

Furniture

10,000

Stock

18,000

Debtors

25,000

Bills Receivable

13,000

1,36,000

1,36,000

The assets and liabilities as on 31^st March 2012 were:

Sundry creditors Rs 35,000 Bill Receivable Rs 18,000 Bills payable Rs 15,000 cash in hand Rs 3,000, Stock Rs 32,000 Cash of bank Rs 6,000 Debtors Rs 38,000. There were no changes in fixed assets.

Further Information:

1) Asha and Usha had drawn Rs 10,000 and Rs 8,000 respectively for personal use.

2) They also brought additional capital of Rs 6,000 and Rs 4,000 respectively.

3) Building to be depreciated by 5% and machinery and furniture at 10%.

4) Charge interest at 10% p.a. on opening capitals and allow interest on drawings of Asha and Usha were Rs 700 and Rs 500 respectively.

Open in App

Solution

Statement of Affairs

as on March 31,2012

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Bills Payable

15,000

Cash in Hand

3,000

Sundry Creditors

35,000

Cash at Bank

6,000

Capital (Balancing Figure)

1,19,000

Stock

32,000

Debtors

38,000

Bills Receivable

18,000

Building

41,000

Machinery

21,000

Furniture

10,000

1,69,000

1,69,000

Statement of Profit or Loss

for the year ended March 31,2012

Particulars

Amount

(Rs)

Amount

(Rs)

Capital at the end of the year

1,19,000

Add: Drawings made during the year

Asha

10,000

Usha

8,000

18,000

Less: Additional capital introduced during the year

Asha

(6,000)

Usha

(4,000)

(10,000)

Adjusted capital at the end of the year

1,27,000

Less: Capital in the beginning of the year

Asha

(62,000)

Usha

(32,000)

(94,000)

33,000

Add: Interest on Drawings

Asha

700

Usha

500

1,200

Less: Depreciation (Building+Machinery+Furniture)

(5,150)

Interest on Capital

Asha

(6,200)

Usha

(3,200)

(9,400)

Profit for the year

Asha

13,100

Usha

6,550

19,650

Suggest Corrections

Similar questions

PRACTICAL PROBLEMS

A and B are in Partnership. Their Capitals on 1^st April 2010 were Rs 30,000 each. The assets and liabilities as on 31^st March 2011 were as follows. Cash in hand Rs 2,400, Cash at Bank Rs 16,000 Bill Receivable Rs 4,000, Debtors Rs 28,600 Stock Rs 26,000. Machinery Rs 14,000, furniture Rs 8,000, Bills Payable Rs 3,000 Sundry creditors Rs 6,000 Outstanding salary Rs 800.

Additional Information:

1) Provide Rs 600 as Bad Debts and 5% R.D.D.

2) Depreciate furniture @ 5% p.a. and Machinery @ 10% p.a.

3) Stock is found undervalued by Rs 2,000.

4) Sundry creditors are found overvalued by Rs 1,000.

5) Prepaid Insurance Rs 2,000.

6) Additional capital introduced by partners Rs 4,000 each.

7) Drawings of ‘A’ Rs 3,000 and ‘B’ Rs 2,000 calculate the profit for the year ended 31^st March 2011.

PRACTICAL PROBLEM

Shedge, Mayekar and Raut were partners sharing profits and losses in the ratio of 4: 3: 3.
Their Balance Sheet on 31^st March 2012 was as given below:-

Balance Sheet as on 31^st March, 2012
Liabilities	Amount Rs	Assets	Amount Rs
Capitals		Furniture	4,200
Shedge	15,000	Stock	13,000
Mayekar	10,000	Debtors	10,000
Raut	10,000	Bill Receivable	18,000
Creditors	8,000	Cash/Bank	2,000
Bank Overdraft	10,000	Profit and Loss A/c (Loss)	5,800
	53,000		53,000

Raut retired from the business on above date and it was agreed that the amount due to Raut to be paid immediately by availing overdraft facility

1) His share of goodwill was raised at Rs 3,500

2) Revalue furniture Rs 4,000 and stock Rs 16,000

3) Create R.D.D. at 5% on Debtors.

4) Make provision for outstanding printing bill Rs 6,000. Prepare profit and loss adjustment A/c, Capital A/c and Balance Sheet of continuing partners assuming that goodwill is written off by the continuing partners.

Monika has the following assets and liabilities as on 31st March, 2016. Ascertain her capital. Cash Rs. 50,000, bank Rs. 95,000, debtors Rs. 36,000, plant and machinery Rs. 1,60,000, building Rs. 4,00,000, furniture Rs. 48,000, creditors Rs. 44,000, bills receivable Rs. 1,13,000 and bills payable Rs. 47,000.

Following balances were extracted from the ledger of Shri Govinda as on 31^st March 2012 Prepare a Trial Balance as on 31^st March, 2012.

Particulars	Rs	Particulars	Rs	Particulars	Rs
Stock (1-4-11)	44,000	Trade Expense	4,000	Furniture	16,000
Purchases	1,70,000	Debtors	72,000	Advertisement	8,000
Sales	3,20,000	Creditors	40,000	Office Rent	10,000
Return Inward	10,000	Salaries	38,000	Drawings	14,000
Carriage	4,000	Insurance	2,400	Good will	6,000
Motive Power	6,000	Postage	3,600	Bank Loan	32,000
Wages	56,000	Commission (Dr.)	5,000	Building	24,000
Plant & Machinery	60,000	Commission (Cr.)	4,000	Capital	1,50,000
Bills Payable	10,000	Cash in hand	3,000

Ajay started business with a capital of Rs 2,25,000 on 1st April, 2011.During the year, he withdrew Rs 40,000 for his personal use and introduced Rs 7,000 as fresh capital. On 31st March 2012,his position of assets and liabilities stood as follows:

Cash in hand 18,500 Rs

Stock 20,000 Rs

Bills receivable 25,000 Rs

Debtors 4,00,000 Rs

Creditors 1,50,000 Rs

Bills Payable 3,000 Rs

You are required to prepare Statement of Profit or Loss for the year ended 31st March, 2012.

Join BYJU'S Learning Program

Statement of Affairs as on March 31,2012
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	15,000	Cash in Hand	3,000
Sundry Creditors	35,000	Cash at Bank	6,000
Capital (Balancing Figure)	1,19,000	Stock	32,000
		Debtors	38,000
		Bills Receivable	18,000
		Building	41,000
		Machinery	21,000
		Furniture	10,000
	1,69,000		1,69,000

Statement of Profit or Loss for the year ended March 31,2012
Particulars	Amount (Rs)	Amount (Rs)
Capital at the end of the year		1,19,000
Add: Drawings made during the year
Asha	10,000
Usha	8,000	18,000
Less: Additional capital introduced during the year
Asha	(6,000)
Usha	(4,000)	(10,000)
Adjusted capital at the end of the year		1,27,000
Less: Capital in the beginning of the year
Asha	(62,000)
Usha	(32,000)	(94,000)
		33,000
Add: Interest on Drawings
Asha	700
Usha	500	1,200
Less: Depreciation (Building+Machinery+Furniture)		(5,150)
Interest on Capital
Asha	(6,200)
Usha	(3,200)	(9,400)
Profit for the year
Asha	13,100
Usha	6,550	19,650