HSC-Partnership Final Accounts | Question no 1 | Text Book Solution

Question-

1. From the following Trial Balance of M/s. Ajay and Vijay, you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date.

Trial Balance as on 31st March 2016-

	Particulars	Debit Amount	Credit Amount
	Capital A/c’s
	Ajay		60,000
	Vijay		35,000
	Purchases and sales	46,700	85,000
	Sundry Debtors and creditors	28,000	20,000
	Bills Receivable and Bills Payable	5,000	6,000
	Commission	4,600	1,800
	Opening stock	18,000
	Wages	9,900
	Investment	13,500
	Postage  and Telegram	3,600
	Insurance	1,200
	Plant and Machinery	40,700
	Furniture	18,000
	Cash in Hand	2,500
	Carriage	3,200
	Bad Debts	400
	Prepaid rent	7,000
	Salaries	10,500
		2,12,800	2,12,800

Additional Informations:

The Closing Stock is valued at 31,000.

Outstanding Expenses were: Wages 1,400; Salaries 800.

Depreciate Plant and Machinery by 10%.

Insurance at 500 is paid in advance.

Provide for further Bad debts of1,500.

Commission due but not received 1,200.

Solution

              Trading a/c for the year ended
                                  31/3/2009

               Profit & Loss a/c for the year ended                                     31/3/2009

                          Partner's Capital Accounts