Partnership Final Accounts Questions: {Only For Private circulation}
[N.M. College] Q. 1 From trial balance of Ram and Shyam you are required to prepare Trading and Profit & Loss account for the year ending 31st March 2019 & the Balance sheet as on that date after taking into consideration the additional information.
Trial Balance as on 31st March2019
Particulars Dr. Amt. Cr. Amt.
Opening Stock 35,000 Salaries & Wages 9,200 Cash on Hand 10,000 Purchases & Sales 2,25,200 3,30,000 Office Expenses 8,600 Productive Wages 14,000 Bills Receivable 8,000 Legal Expenses 3,000 Bad Debts 1,000 Purchase Return 6,000 Works Manager’s Salary 6,000 Commission 3,000 4,800 Investments 20,000 Debtors & Creditors 40,000 20,000 Sales Return 5,000 Bank Overdraft 10,000 Patents 3,000 Loose Tools 6,000 Furniture 12,000 Goodwill 13,000 Interest on Investments 1,200 Land & Building 50,000 Capital Accounts: - Ram 60,000 Shyam 40,000 TOTAL 4,72,000 4,72,000
Adjustments: 1. Partners share profits & losses in their capital ratio. 2. The closing stock cost Rs. 20,000/-, market value Rs. 45,000/- 3. Ram has withdrawn goods worth Rs. 1,200/- for his personal use. 4. Uninsured goods worth Rs. 10,000/- were destroyed by fire. 5. Rs. 450/- written off as bad debts from debtors. 6. Outstanding salaries & wages Rs. 800/- 7. Depreciate Land & Building at 15%. 8. Both partners are entitled for salary of Rs. 4,000/- every year. 9. Shyam is entitled for commission @ 5% on net sales.
Q. 2 Komal, Kamal and Kajal are the partners sharing profits and losses in the ratio of 3:2:1. Prepare final accounts of their partnership firm from following. The Trial Balance as on 31st March 2019 is given below. Particulars Debit Rs. Credit Rs. Partner’s Capital A/c: - Komal 3,00,000 Kamal 2,00,000 Kajal 1,00,000 Partner’s Current A/c: - Komal 16,000 Kamal 7,000 Kajal 9,000 Opening Stock 68,000 Purchases & Sales 1,94,000 4,16,000 Productive Wages 66,000 Office Salary 46,000 Opening Stock of Stationery 2,500 Purchase of Stationery 17,500 Insurance for year ended 01.07.19 4,500 Postage Telegram and Telephone 15,500 Customers and Suppliers A/c 1,61,600 1,27,000 Bills Receivable & Payable 29,000 18,000 Sundry Expenses 4,400 Carriage 8,000 Clearing Agent’s Commission 8,000 Land 70,000 Building 1,14,000 Furniture and Fittings 35,000 Bad Debts and Bad Debts Reserve 6,800 2,800 Plant & Machinery (Includes purchases of 1,74,000 machinery Rs. 74,000/- on 01.06.18) Discount 7,800 5,200 Loss by fire 1,400 Production Expenses 8,000 Advertisement 11,000 Bills Sent for Collection 9,000 Bank Charges and Interest 3,500 Investment in 15% Debentures on 1/04/2018 25,000 (Face value Rs.30,000/-) Interest on Above Investments 2,000 Bad Debts Recovery 2,500 Balance with Bank 3,000 Cash on Hand 2,700 Goodwill 30,000 Commission 7,200 Office Equipment’s 32,800 Royalties - Production 11,500 Loading Charges 8,700 Refreshments Expenses 5,100 TOTAL 11,98,500 11,98,500
Adjustments: - 1. Closing stock of goods represents cost Rs.95, 000/- and market value Rs. 1,10,000/-. Stock of Stationery on 31st March 2019 was Rs. 2,000/-. 2. Goods costing Rs. 3,000/- were taken by Kamal for personal use. It remains unrecorded. 3. A cheque of Rs. 1,400/- was received from a customer in full settlement of Rs. 1,500/-. The dishonor of this cheque remains unrecorded. 4. Office salary includes prepaid salary of Rs. 6,000/-. 5. Depreciate building, plant & machinery and furniture at the rate of 12% p.a. 6. Allow interest on capital at the rate of 10% p.a. 7. A bill of Rs. 3,000/-, which was sent for collection, was dishonoured and noting charges were paid by us Rs. 100/-. 8. Outstanding telephone bill of Rs. 500/-. 9. Write off Bad Debts Rs. 3,000/- and create Bad Debts Reserve @ 5% on debtors. 10. Create provision for discount on debtors and creditors @ 2% and 1% respectively.
Q. 3 Following is the trial balance of Tom and Jerry as on 31st March 2019.You are required to prepare Trading and Profit and Loss Account for the year Ended 31 st march 2019 and Balance sheet as on that date. Trial Balance as On 31st March 2019 Particulars Debit Rs. Credit Rs. Current Account of - Tom 12,000 -Jerry 15,000 Stock as on 1st April 2018 2,64,000 Purchases 5,28,000 Sales 9,24,000 Capital Account of – Tom 3,60,000 - Jerry 3,60,000 Wages 70,500 Salaries 45,000 Office Expenses 24,000 Bank Charges 7,800 Legal Charges 9,000 Machinery 2,70,000 Land and Building 3,90,000 Interest 10,800 Export Duty 11,400 Bad Debts 12,000 Sundry Debtors 2,46,000 Travelling Expenses 9,600 Electricity Charges 6,900 Furniture 1,11,000 10% Debentures 1,20,000 (Purchased on 1st October 2018) Sundry Creditors 3,09,000 Bank Overdraft 1,80,000 21,48,000 21,48,000
Additional Information:
1. Closing stock was valued at Rs. 2,40,000/-.
2. Goods costing Rs. 48,000/- and insurance co. admitted claim of Rs. 39,000/-. 3. Outstanding Expenses were: Salaries Rs. 9,000/- and Wages Rs. 7,200/-. 4. Depreciate machinery @ 10%p.a. and Land and Building @ 5%p.a. 5. Create Reserve for Bad and Doubtful Debts @ 5% on sundry debtors. 6. Legal charges paid in advance Rs. 3,600/-. 7. Provide interest on capital @ 8% p.a.
Q.4 From the following Trial Balance of Reena, Meena and Teena and additional information, prepare Final accounts for year-ended 31st March 2019. Trial Balance of Firm as on 31st March 2019.
Adjustments: - 1. Closing Stock is valued at Rs. 56,000/-. 2. Charge interest on drawings and allow interest on capital @ 10% p.a. 3. A customer with debit balance of Rs. 5,000/- was declared insolvent and his asset could pay first and final dividend of 40 paise in a rupee. The books of accounts show only the cash receipt. 4. Create provision for Bad & Doubtful Debts @ 4% on debtors. 5. Depreciate machinery and furniture @ 12% and @ 10% p.a. respectively. 6. Goods costing Rs. 6,000/- were lost by fire and insurance company did not admit the claim of 55%. 7. Sale of machinery account represents selling price of machine sold, the machinery representing an opening balance of Rs. 8,000/- was sold on 31.12.2018. 8. The ABC Co. declared dividend of 15% which is received by NEFT in business bank account. 9. Outstanding expenses – Salaries = Rs. 2,500/-, Factory Expenses = Rs. 2,000/-, Office Expenses = Rs. 1,500/-.
Q.5 Akash and Gagan are partners sharing Profit & Losses in the proportion of 3:2 on 31 st March 2019 their Trial Balance was as under: Trial Balance As On 31st March 2019 Debit Amt. Credit Amt.
Current Accounts
Akash 30,000 Capital Accounts
Interest on loan 1,890 Akash 1,20,000
Insurance Premium 3,600 Gagan 60,000
(Paid for the year ended Current Accounts
30/09/2019)
Salaries 19,350 Gagan 6,000
Furniture 9,000 10% Loan {From 42,000
1/12/18} Loose Tools 900 Purchase Return 3,000
Freight 600 Commission Received 24,000
Motor Car 84,000 Bank Overdraft 60,000
Sundry Expenses 4,800 Discount 1,950
Sales Return 6,000 Sales 1,92,000
Travelling Expenses 1,200 Discount Reserve 1,500
Bank 15,000 Bad Debts Reserve 6,000
Stock 54,000 Creditors 60,000
Bank Interest on overdraft 600
Building 77,700
Carriage 1,200
Discount 750
Plant & Machinery 49,950
Dep. on Plant & 4,050
Machinery
Export Duty 2,100
Purchases 90,000
Discount Reserves 1,200
Investments 22,560
Debtors 96,000 TOTAL 5,76,450 TOTAL 5,76,450
From the information given below prepare Trading and Profit & Loss Account and a Balance sheet as on 31st March 2019.
1. Stock on 31st March 2019 was valued at Market value Rs. 45,000/- & at cost Rs. 60,000/-. 2. Goods worth Rs. 3,000/- were destroyed by fire, nothing could be recovered from the insurance company. 3. Depreciate building by 30%, furniture by 15% and motor car by 60%. 4. Increase Bad Debts Reserve by Rs. 9,000/-. Rs. 9,000/- for commission is still to be received. Salaries are outstanding to the extent of Rs. 1,650/-. 5. Create 6% reserve for discount on debtors as well as creditors. 6. According to Partnership deed, 15% interest on partner’s capital is to be credited. 7. Goods selling price is Rs. 1,500/- donated to “GOOD DEED TRUST”. We normally sell goods at 20% profit on selling price.
