Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts 1 02 Partnership Final Accounts Solution to Practice Q.1.: In the Books of Firm Trading Account for the year ended 31 st Mar, 2012 Dr. Cr. Particulars Amount ` Amount ` Particulars Amount ` Amount ` To Opening Stock A/c 25,000 By Sales A/c 1,42,600 To Purchases A/c 90,000 By Goods Taken Over A/c 3,000 To Wages A/c 24,000 By Closing Stock A/c 18,500 To Factory Expenses A/c 8,000 To Gross Profit c/d 17,100 1,64,100 1,64,100 Profit and Loss Account for the year ended 31 st Mar, 2012 Dr. Cr. Particulars Amount ` Amount ` Particulars Amount ` Amount ` To Reserve for Bad & By Gross Profit b/d 17,100 Doubtful Debts A/c Old Bad Debts 700 Add: New Bad Debts 1,000 Add: New R.D.D. 2,200 Less: Old R.D.D. 1,000 2,900 To Carriage Outward A/c 1,700 To Advertisements A/c 3,500 To Insurance A/c 400 Less: Prepaid 100 300 To Depreciation A/c Land and Building (10%) 3,000 Furniture (20%) 600 3,600 To Office Expenses A/c 2,300 To Net Profit c/d Suresh 1,600 Ramesh 1,200 2,800 17,100 17,100 Partner’s Current Account Dr. Cr. Particulars Suresh ` Ramesh ` Particulars Suresh ` Ramesh ` To Drawings A/c 3,000 − By Balance b/d 20,000 25,000 (Goods withdrawn) By Profit & Loss A/c 1,600 1,200 To Balance c/d 18,600 26,200 21,600 26,200 21,600 26,200
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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
1
02 Partnership Final Accounts Solution to Practice Q.1.: In the Books of Firm
Trading Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 25,000 By Sales A/c 1,42,600To Purchases A/c 90,000 By Goods Taken Over A/c 3,000To Wages A/c 24,000 By Closing Stock A/c 18,500To Factory Expenses A/c 8,000 To Gross Profit c/d 17,100 1,64,100 1,64,100
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 17,100Doubtful Debts A/c
Old Bad Debts 700 Add: New Bad Debts 1,000 Add: New R.D.D. 2,200 Less: Old R.D.D. 1,000 2,900
To Carriage Outward A/c 1,700 To Advertisements A/c 3,500 To Insurance A/c 400
Less: Prepaid 100 300 To Depreciation A/c
Land and Building (10%) 3,000 Furniture (20%) 600 3,600
To Office Expenses A/c 2,300 To Net Profit c/d
Suresh 1,600 Ramesh 1,200 2,800
17,100 17,100
Partner’s Current Account
Dr. Cr.
Particulars Suresh `
Ramesh `
Particulars Suresh `
Ramesh `
To Drawings A/c 3,000 − By Balance b/d 20,000 25,000(Goods withdrawn) By Profit & Loss A/c 1,600 1,200 To Balance c/d 18,600 26,200
21,600 26,200 21,600 26,200
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2012 Liabilities Amount
Less: New Bad Debts 1,000 44,000 Less: New R.D.D. (5%) 2,200 41,800 Closing Stock 18,500 Prepaid Insurance 100 Cash at Bank 5,000 94,800 94,800
Solution to Practice Q.2.: In the books of Firm Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 45,000 By Sales A/c 1,87,500To Purchase A/c 1,12,500 Less: Return Inward 3,600 1,83,900
Less: Return Outward 1,500 1,11,000 By Goods Distributed as To Productive Wages A/c 5,250 Free Sample A/c 1,250
Add: Outstanding 300 5,550 By Closing Stock A/c 28,000 To Gross Profit c/d 51,600 2,13,150 2,13,150
Profit and Loss Account for the year ended 31st Mar, 2007 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 51,600Doubtful Debts A/c By Discount A/c 1,500
Old Bad Debts 600 Add: New Bad Debts – Add: New R.D.D. 3,825 Less: Old R.D.D. – 4,425
To Depreciation A/c Building (5%) 2,715 Machinery (10%) 2,250 4,965
To Salaries A/c 9,300 To Rent, Rates, Insurance A/c 5,100
Less: Prepaid 200 4,900 To Discount A/c 1,950 To Unproductive Wages A/c 900 To Advertisement A/c (Goods distributed as Free Samples) 1,250 To Net Profit c/d
Sona 15,246 Mona 10,164 25,410 53,100 53,100
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Partner’s Capital Account Dr. Cr.
Particulars Sona `
Mona `
Particulars Sona `
Mona `
To Drawings A/c 16,500 15,000 By Balance b/d 52,500 67,500 By Profit & Loss A/c 15,246 10,164To Balance c/d 51,246 62,664
67,746 77,664 67,746 77,664
Balance Sheet as on 31st Mar, 2007 Liabilities Amount
` Amount
` Assets Amount
` Amount
`Capital Machinery 22,500
Sona 51,246 Less: Depreciation (10%) 2,250 20,250Mona 62,664 1,13,910 Building 54,300
Trading Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 45,000 By Sales A/c 5,50,000To Purchases A/c 2,25,000 By Closing Stock A/c 35,000 Less: Purchase of Machinery 15,000 2,10,000To Manufacturing & Wages A/c 70,000To Carriage Inwards A/c 2,500 To Factory Rent A/c 7,500 Add: Outstanding 300 7,800To Coal Gas & Water A/c 1,000
To Gross Profit c/d 2,48,700 5,85,000 5,85,000
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Profit and Loss Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 2,48,700Doubtful Debts A/c
Old Bad Debts – Add: New Bad Debts 2,250 Add: New R.D.D. − Less: Old R.D.D. 200 2,050
To Trade Charges A/c 12,800 To Salaries A/c 18,000 To Carriage Outwards A/c 1,500 To Discount A/c 350 To Insurance A/c 700 To Office Rent A/c 30,000 To Printing & Stationery A/c 600
Add: Outstanding 600 1,200 To Advertising A/c 15,000
Less: Prepaid 10,000 5,000 To Interest on Loan A/c 2,850
To Net Profit c/d
Raju 87,125 Manju 87,125 1,74,250
2,48,700 2,48,700
Partner’s Capital Account
Dr. Cr.
Particulars Raju
`
Manju `
Particulars Raju
`
Manju `
To Drawings A/c 4,500 3,500 By Balance b/d 35,000 30,000By Profit & Loss A/c 87,125 87,125
To Balance c/d 1,17,625 1,13,625
1,22,125 1,17,125 1,22,125 1,17,125
Balance Sheet as on 31st Mar, 2012 Liabilities Amount
` Amount
` Assets Amount
` Amount
`Capitals Plant & Machinery 95,000
Raju 1,17,625 Add: Additions wrongly Manju 1,13,625 2,31,250 included in Purchases 15,000 1,10,000
Factory Rent 300 Closing Stock 35,000Printing & Stationery 600 900 Prepaid Advertising 10,000 Cash in Hand 10,000
Cash at Bank 12,500 2,85,750 2,85,750
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Solution to Practice Q.5.: In the Books of Firm Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 45,000 By Sales A/c 4,50,000To Purchases A/c 2,25,000 By Closing Stock A/c 35,000To Carriage A/c 16,800 To Factory Rent A/c 1,500
Add: Outstanding 300 1,800 To Wages A/c 20,000 To Royalty A/c 1,000 To Gross Profit c/d 1,75,400 4,85,000 4,85,000
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 1,75,400Doubtful Debts A/c By Discount Received A/c 750
Old Bad Debts − Add: New Bad Debts − Add: New R.D.D. 1,500 Less: Old R.D.D. 200 1,300
To Insurance A/c 1,050 Less: Prepaid 100 950
To Office Rent A/c 3,000 Add: Outstanding 600 3,600
To Printing and Stationery A/c 600 To Advertising A/c 15,000 To Salaries A/c 18,000 To Depreciation A/c
Plant and Machinery (6%) 4,500 Furniture (10%) 750 5,250
To Interest on Capital A/c Kamlesh 1,500 Mahajan 1,200 2,700
To Net Profit c/d
Kamlesh 64,375 Mahajan 64,375 1,28,750
1,76,150 1,76,150
Partner’s Capital Account
Dr. Cr.
Particulars Kamlesh `
Mahajan `
Particulars Kamlesh `
Mahajan `
To Drawings A/c 3,500 2,500 By Balance b/d 25,000 20,000 By Interest on Capital A/c 1,500 1,200To Balance c/d 87,375 83,075 By Profit & Loss A/c 64,375 64,375
90,875 85,575 90,875 85,575
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Balance Sheet as on 31st Mar, 2007 Liabilities Amount
Trading Account for the year ended 31st Mar, 2005 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 35,000 By Sales A/c 3,30,000To Purchases A/c 2,25,200 By Goods destroyed by Fire To Wages A/c 12,000 A/c 12,000To Factory Expenses A/c 8,000 By Goods withdrawn by
Profit and Loss Account for the year ended 31st Mar, 2005
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 1,03,000Doubtful Debts A/c By Discount A/c 4,000
Old Bad Debts 3,000 By Interest on Investments Add: New Bad Debts 450 A/c 8,000Add: New R.D.D. − Less: Old R.D.D. – 3,450
To Salary and Wages A/c 4,200 Add: Outstanding 800 5,000
To Sundry Expenses A/c 13,600 To Travelling Expenses A/c 2,000 To Commission A/c 4,000 To Depreciation on Building A/c (7.5%) 3,750 To Loss by Fire A/c 12,000 To Rent (outstanding) A/c 1,200 To Net Profit c/d
Kumbhar’s A/c 42,000 Maroti’s A/c 28,000 70,000
1,15,000 1,15,000
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account Dr. Cr.
Particulars Kumbhar `
Maroti `
Particulars Kumbhar `
Maroti `
To Drawings A/c 1,200 − By Balance b/d 60,000 40,000 By Profit & Loss A/c 42,000 28,000To Balance c/d 1,00,800 68,000
1,02,000 68,000 1,02,000 68,000
Balance Sheet as on 31st Mar, 2005 Liabilities Amount
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr. Particulars Amount
` Amount
` Particulars Amount
` Amount
`To Office Rent (outstanding) 12,000 By Gross Profit b/d 2,54,000A/c By Royalties Received A/c 3,000To Printing and Stationery Less: Received in Advance 1,000 2,000 (outstanding) A/c 1,200 To Interest on Overdraft A/c 500 To Provident Fund Contribution A/c 15,000 To Salaries and Wages A/c 37,000 To Sundry Expenses A/c 3,000 To Audit Fees A/c 10,000 To Salary to Dubbu A/c 6,000
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To Commission to Guddu A/c 2,540 (2,54,000 × 1%) To Net Profit c/d
Dubbu 98,443 Guddu 70,317 1,68,760
2,56,000 2,56,000
Partner’s Current Account
Dr. Cr.
Particulars Dubbu `
Guddu `
Particulars Dubbu `
Guddu `
To Drawings A/c 10,000 7,000 By Balance b/d 10,000 6,000 By Salary A/c 6,000 – By Commission A/c – 2,540To Balance c/d 1,04,443 71,857 By Profit and Loss A/c 98,443 70,317
1,14,443 78,857 1,14,443 78,857
Balance Sheet as on 31st Mar, 2012 Liabilities Amount
Creditors 41,000 Land & Building 1,06,600Outstanding Wages 2,000 Debtors 24,000 Add: Unrecorded Sales 6,000 30,000
Less: R.D.D. @ 5% 1,500 28,500 Cash in Hand 1,000 Deposit with Electricity Board 1,500 Closing Stock 24,000
2,77,800 2,77,800
Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
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Solution to Practice Q.9.: In the Books of Firm Trading Account for the year ended 31st Mar 2013
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 90,000 By Sales A/c 8,14,000To Purchases A/c 6,50,000 By Closing Stock A/c 1,10,000To Wages A/c 35,000 To Carriage Inward A/c 7,000 To Gross Profit c/d 1,42,000 9,24,000 9,24,000
Profit and Loss Account for the year ended 31st Mar, 2013
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 1,42,000Doubtful Debt A/c
Old Bad Debt 3,000 Add: New Bad Debt − Add: New R.D.D. 7,500 Less: Old R.D.D. − 10,500
To Salaries A/c 28,000 Less: Advance to Workers 2,500 25,500
To Postage and Telegram A/c 4,000 To Insurance A/c 5,000 To Rent A/c 4,000 To Discount A/c 3,000 To Depreciation on Plant & Machinery A/c (10%) 12,000 To Interest on Partners Capital A/c
Meena 15,000 Reena 10,000 25,000
To Net Profit c/d
Meena 31,800 Reena 21,200 53,000
1,42,000 1,42,000
Partner’s Capital Account
Dr. Cr.
Particulars Meena `
Reena `
Particulars Meena `
Reena `
To Drawings A/c 10,000 5,000 By Balance b/d 3,00,000 2,00,000 By Interest on Capital A/c 15,000 10,000To Balance c/d 3,36,800 2,26,200 By Profit & Loss A/c 31,800 21,200
3,46,800 2,31,200 3,46,800 2,31,200
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2013 Liabilities Amount
Trading Account for the year ended 31st Mar, 2007 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 15,000 By Sales A/c 79,800To Purchases A/c 45,700 By Goods destroyed by Fire A/c 4,000To Wages A/c 9,900 By Closing Stock A/c 40,200
Add: Outstanding 2,100 12,000 To Carriage Inwards A/c 4,500
Less: Carriage paid for Machinery
1,000 3,500 To Gross Profit c/d 47,800 1,24,000 1,24,000
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Carriage Outwards A/c 4,600 By Gross Profit b/d 47,800To Printing and Stationery A/c 3,400 To Insurance A/c 750
Less: Prepaid 200 550 To Salaries A/c 10,000 To Postage and Telegram A/c 700 To Advertisement A/c 1,000 To Bad Debts A/c 250 To Loss by Fire A/c 800 To Depreciation A/c
Machinery (10%) 2,780 Furniture (15%) 960 3,740
To Net Profit c/d
Ajay A/c 11,380 Vijay A/c 11,380 22,760
47,800 47,800
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account Dr. Cr.
Particulars Ajay `
Vijay `
Particulars Ajay `
Vijay `
By Balance b/d 40,000 25,000To Balance c/d 51,380 36,380 By Profit & Loss A/c 11,380 11,380
51,380 36,380 51,380 36,380 Balance Sheet as on 31st Mar, 2007
Liabilities Amount `
Amount `
Assets Amount `
Amount `
Capital : Investment 3,500Ajay 51,380 Machinery 26,800
Vijay 36,380 87,760 Add: Carriage paid for Machinery 1,000
Solution to Practice Q.12.: In the Books of Firm Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 15,000 By Sales A/c 1,58,000To Purchases A/c 98,000 By Closing Stock A/c 15,000
Less: Return Inward 3,500 94,500 By Goods destroyed by Fire To Carriage A/c 1,300 A/c 10,000To Wages and Salaries A/c 11,000 To Gross Profit c/d 61,200 1,83,000 1,83,000
Profit and Loss Account for the year ended 31st Mar, 2007 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 61,200Doubtful Debts A/c By Interest on Investments
Old Bad Debts − A/c 500Add: New Bad Debts − Add: New R.D.D. 1,750 Less: Old R.D.D. 250 1,500
To Printing and Stationery A/c 1,750 Less: Unused 500 1,250
To Audit Fees A/c 700
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To Sundry Expenses A/c 3,500 To Provident Fund Contribution A/c 800 To Travelling Expenses A/c 2,700 To Depreciation A/c
Building (5%) 5,000 Patents Right (10%) 400 5400
To Loss by Fire A/c 2,000 To Interest on Capital A/c
Ashok 1,500 Tanaji 2,000 3,500
To Net Profit c/d
Ashok 16,140 Tanaji 24,210 40,350
61,700 61,700
Partner’s Capital Account
Dr. Cr.
Particulars Ashok `
Tanaji `
Particulars Ashok `
Tanaji `
By Balance b/d 30,000 40,000 By Interest on Capital A/c 1,500 2,000To Balance c/d 47,640 66,210 By Profit & Loss A/c 16,140 24,210
47,640 66,210 47,640 66,210
Balance Sheet as on 31st Mar, 2007 Liabilities Amount
Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
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Solution to Practice Q.14.: In the Books of Firm Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 35,000 By Sales A/c 1,80,000To Purchases A/c 85,000 By Goods withdrawn for Less: Purchase of Furniture 5,000 personal use A/c Less: Purchase Returns 4,500 75,500 Ram 3,000To Wages A/c 8,000 Lakhan 1,000 4,000To Trade Expenses A/c 200 By Closing Stock A/c 24,000 To Gross Profit c/d 89,300 2,08,000 2,08,000
Profit and Loss Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 89,300Doubtful Debts A/c
Old Bad Debts − Add: New Bad Debts 1,000 Add: New R.D.D. 3,500 Less: Old R.D.D. − 4,500
To Tax & Insurance A/c 2,500 To Rent A/c 3,000
Less: Prepaid 200 2,800 To General Expenses A/c 500 To Warehouse Rent A/c 300 To Depreciatoon on Motor Lorry A/c (10%) 1,500 To Salary to Ram’s A/c 1,500 To Commission to Lakhan’s A/c (2% on Sales) 3,600 To Interest on Partners Capital A/c
Ram 2,500 Lakhan 2,500 5,000
To Net Profit c/d Ram 33,550 Lakhan 33,550 67,100 89,300 89,300
Partner’s Current Account Dr. Cr.
Particulars Ram `
Lakhan`
Particulars Ram `
Lakhan`
To Balance b/d – 2,000 By Balance b/d 5,000 –To Drawings A/c 3,000 1,000 By Salary A/c 1,500 –(Goods withdrawn for personal By Commission A/c use) (2% on Sales) – 3,600
By Interest on Partners Capital A/c 2,500 2,500To Balance c/d 39,550 36,650 By Profit & Loss A/c 33,550 33,550
42,550 39,650 42,550 39,650
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2012 Liabilities Amount
` Amount
` Assets Amount
` Amount
`Capitals Furniture & Fixtures 20,000
Ram 25,000 Add: Wrongly included in Lakhan 25,000 50,000 Purchases 5,000 25,000
Current Motor Lorry 15,000Ram 39,550 Less: Depreciation (10%) 1,500 13,500Lakhan 36,650 76,200 Debtors 71,000
Sundry Creditors 20,100 Less: New Bad Debts 1,000Bills Payable 3,000 70,000
Trading Account for the year ended 31st Mar, 2007 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 28,788 By Sales A/c 2,05,000To Purchase A/c 1,25,225 Less: Sales Return 4,250 2,00,750
Less: Return 3,230 1,21,995 By Closing Stock A/c 15,000To Wages A/c 20,167 To Gross Profit c/d 44,800 2,15,750 2,15,750
Profit and Loss Account for the year 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 44,800Doubtful Debts A/c By Commission A/c 245
Old Bad Debt 315 By Dividend on Investment Add: New Bad Debt 200 A/c 825Add: New R.D.D. 1,000 Less: Old R.D.D. 500 1,015
To Salaries A/c 13,677 To Advertisement A/c 3,000
Less: Prepaid 2,500 500 To Insurance A/c 320 To Depreciation A/c
Furniture (10%) 675 Machinery (5%) 375 1,050
To Interest on Capital A/c Keshav 1,350 Devidas 1,750 3,100
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To Commission to Keshav A/c 448 To Salaries to Devidas A/c 2,000 To Net Profit c/d
Keshav 11,880 Devidas 11,880 23,760
45,870 45,870
Partner’s Capital Account
Dr. Cr.
Particulars Keshav `
Devidas `
Particulars Keshav `
Devidas `
To Drawings A/c 3,000 1,500 By Balance b/d 27,000 35,000 By Salaries A/c – 2,000 By Commission A/c 448 – By Interest on Capital A/c 1,350 1,750To Balance c/d 37,678 49,130 By Profit & Loss A/c 11,880 11,880
40,678 50,630 40,678 50,630
Balance Sheet as on 31st Mar, 2007
Liabilities Amount `
Amount `
Assets Amount `
Amount `
Capital Debtors 50,200Keshav 37,678 Less: New Bad debts 200Devidas 49,130 86,808 50,000
Trading Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 20,000 By Sales A/c 2,40,000To Purchases A/c 1,20,000 By Closing Stock A/c 37,000To Wages A/c 14,000 To Carriage A/c 5,000 To Gross Profit c/d 1,18,000 2,77,000 2,77,000
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 1,18,000Doubtful Debts A/c By Interest on Drawings A/c
Old Bad Debts 1,000 Jay 100Add: New Bad Debts – Vijay 200 300Add: New R.D.D. 1,950 By Excess R.D.D. A/c 50Less: Old R.D.D. 3,000 – By Commission A/c 1,000
To Interest on Capital A/c By Reserve for Discount on Jay 3,840 Creditors A/c Vijay 1,920 5,760 Old Discount on Creditor −
To Discount A/c 800 Add: New Discount on Add: New R.F.D.D. 741 1,541 Creditor –
To Printing & Stationery A/c 3,300 Add: New Reserve for Less: Stock of Stationery 500 2,800 Discount on Creditors 1,080
To Depreciation A/c Less: Old Reserve for Building (20%) 24,000 Discount on Creditor − 1,080Machinery (15%) 9,000 33,000
To Salaries & Wages A/c 10,000 To Interest on Bank Loan A/c 3,900
Add: Outstanding 2,100 6,000 To Net Profit c/d
Jay 40,886 Vijay 20,443 61,329
1,20,430 1,20,430
Partner’s Current Account
Dr. Cr.
Particulars Jay `
Vijay `
Particulars Jay `
Vijay `
To Balance b/d – 4,000 By Balance b/d 3,000 –To Drawings A/c 2,000 4,000 By Interest on Capital A/c 3,840 1,920To Interest on Drawings A/c 100 200 By Profit & Loss A/c 40,886 20,443 To Balance c/d 45,626 14,163
Trading Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 17,000 By Sales A/c 75,500To Purchases 47,500 Less: Sales Returns 1,500 74,000 Add:Unrecorded Purchases 1,500 By Closing Stock A/c 10,000
49,000 Less: Purchase Returns 1,000 48,000
To Gross Profit c/d 19,000 84,000 84,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 19,000Doubtful Debts A/c By Reserve for Discount on
Old Bad Debts Creditors A/c Add: New Bad Debts Old Discount on Creditor 600Add: New R.D.D. 880 Add: New Discount on Less: Old R.D.D. 400 480 Creditor –
To Stationery A/c 2,000 Add: New Reserve for Less: Unused Stationery 400 1,600 Discount on Creditors 420
To Advertisement A/c 2,700 Less: Old Reserve for Less: Prepaid 2,000 700 Discount on Creditor 200 820
To Rent, Rates & Insurance By Interest Receivable A/c 150A/c 1,400 To Shop Fittings written off A/c 3,200
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To Reserve for Discount on Debtors A/c
Old Discount on Debtors 400 Add: New Discount on Debtors − Add: New Reserve for Discount on Debtors
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 2,60,000Doubtful Debts A/c By Reserve for Discount on
Old Bad Debts 7,500 Creditors A/c Add: New Bad Debts 2,000 Old Discount on Creditor −Add: New R.D.D. 4,400 Add: New Discount on Less: Old R.D.D. 2,000 11,900 Creditor –
To Reserve for Discount on Add: New Reserve for Debtors A/c Discount on Creditors 400
Old Discount on Debtors 5,000 Less: Old Reserve for Add: New Discount on Debtors − Discount on Creditor − 400Add: New Reserve for Discount on Debtors
1,672
Less: Old Reserve for Discount on Debtors
− 6,672
To Provident Fund Contribution A/c 5,000 To Salary & Wages A/c 25,000
Less: Drawings 2,000 23,000 To Commission to Kale A/c 10,000 To Depreciation A/c
Less: R.D.D. (5%) 3,500 66,500 Cash in Hand 7,500 Closing Stock 1,00,000 Prepaid Insurance 1,500
7,75,500 7,75,500
Solution to Practice Q.21.: In the books of firm
Trading Account for the year ended 31st Mar, 2007 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 22,000 By Sales A/c 2,87,500To Purchases A/c 1,62,350 By Goods Taken by Sachin A/c 3,000To Wages A/c 4,500 By Closing Stock A/c 37,500To Gross Profit c/d 1,39,150 3,28,000 3,28,000
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Salaries A/c 11,200 By Gross Profit c/d 1,39,150To Professional Charges A/c 7,300 By Commission A/c 4,200To Printing & Stationery A/c 1,850 Less: Loan Taken 2,000 2,200To Insurance A/c 3,400 By Interest on Drawings A/c To Interest A/c 6,300 Sachin 250To P.F. Contribution A/c 1,000 Shrimant 180 430To Interest on Capital A/c
Sachin 4,000 Shrimant 2,000 6,000
To Advertisement A/c 3,600 Less: Prepaid 3,150 450
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To Net Profit c/d Sachin 78,210 Shrimant 26,070 1,04,280 1,41,780 1,41,780
Partner’s Capital Account Dr. Cr.
Particulars Sachin `
Shrimant `
Particulars Sachin `
Shrimant `
To Drawings A/c 2,500 1,800 By Balance b/d 40,000 20,000To Drawings A/c [goods] 3,000 – By Interest on Capital A/c 4,000 2,000To Interest on Drawings A/c 250 180 By Profit & Loss A/c 78,210 26,070 To Balance c/d 1,16,460 46,090
1,22,210 48,070 1,22,210 48,070 Balance Sheet as on 31st Mar, 2007
Liabilities Amount `
Amount `
Assets Amount `
Amount `
Capital A/c Prepaid Insurance 400Sachin 1,16,460 Debtors 48,200Shrimant 46,090 1,62,550 Cash at Bank 1,01,300
Bills Payable 3,000 P.F. Investment 12,000Creditors 21,500 Prepaid Advertisement 3,150Outstanding Salaries 300 Closing Stock 37,500Provident Fund 12,000 Interest On P.F. Investment 1,200 Mr. Patil’s Loan 2,000 2,02,550 2,02,550
Solution to Practice Q.22.: In the Books of Firm Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 2,00,000 By Sales A/c 3,54,000To Purchases A/c 1,37,500 By Goods Distributed as Free
Trading Account for the year ended 31st Mar, 2007 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 17,500 By Sales A/c 1,65,000To Purchase A/c 1,12,600 By Goods Withdrawn by Jagan To Productive Expense A/c 7,000 A/c 600To Work Manager Salary A/c 3,000 By Goods destroyed by Fire
Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Solution to Practice Q.24.: In the books of firm Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 42,000 By Sales A/c 2,20,000To Purchases A/c 1,02,000 By Goods stolen A/c 6,000To Wages A/c 4,000 By Closing Stock A/c 30,000
Less: Advance to worker 1,250 2,750 To Motive Power A/c 7,500
Less: Deposit for Power Meter 2,500 5,000 To Trade Expenses A/c 1,000
Less: Carriage Paid for new Machinery 500 500
To Gross Profit c/d 1,03,750 2,56,000 2,56,000
Profit and Loss Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Salaries A/c 7,000 By Gross Profit b/d 1,03,750To Audit Fees A/c 9,900 By Interest on Investments A/c 600To Stationery A/c 3,200 Add: Interest Receivable 150 750
Less: Unused Stationery 800 2,400 To Interest A/c 2,500 To General Expenses A/c 2,500 To Depreciation on Motor Van A/c (10%) 4,400 To Loss by theft A/c 6,000 To Net Profit c/d
Ramu 41,880 Shamu 27,920 69,800
1,04,500 1,04,500
Partner’s Current Account Dr. Cr.
Particulars Ramu `
Shamu `
Particulars Ramu `
Shamu `
To Drawings A/c 6,000 4,000 By Balance b/d 8,000 5,500 By Profit & Loss A/c 41,880 27,920To Balance c/d 43,880 29,420
49,880 33,420 49,880 33,420 Balance Sheet as on 31st Mar, 2012
Current A/c Motor Van 44,000Ramu 43,880 Less: Depreciation (10%) 4,400 39,600Shamu 29,420 73,300 Building 75,000
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Sundry Creditors 50,000 Debtors 48,000Loan from Ramu 30,000 Machinery 30,000 Add: Carriage paid for new machinery 500 30,500 Cash at Bank 22,000 Deposit for Power Meter 2,500 Stock of Stationery 800 Advance to workers 1,250 Closing Stock 30,000 2,88,300 2,88,300
Solution to Practice Q.25.: In the books of firm
Trading Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 35,000 By Sales A/c 2,60,000To Purchases A/c 1,65,000 Less: Sale of Furniture 2,000 2,58,000
Less: Returns 3,000 1,62,000 By Goods distributed as free To Wages A/c 28,000 Samples A/c 400 By Goods destroyed by fire A/c 1,000To Gross Profit c/d 52,400 By Closing Stock A/c 9,000 2,77,400 2,77,400
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Reserve for Bad & By Gross Profit b/d 52,400Doubtful Debts A/c By R.D.D. A/c 1,800
Old Bad Debts 1,000 By Interest on Investment A/c 700Add: New Bad Debts − Add: Interest Receivable 300 1,000Add: New R.D.D. – By Profit on Sale of Furniture Less: Old R.D.D. 2,800 − A/c 100
To Salaries A/c 18,000 To Insurance A/c 3,500 To Rent & Taxes A/c 2,000 To Advertisement A/c 400 To Loss by fire A/c 2,000 To Depreciation on Building A/c (10%) 4,400 To Commission to Manager A/c 5,000 To Net Profit c/d
Arun 10,000 Varun 6,000 Tarun 4,000 20,000
55,300 55,300
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account Dr. Cr.
Particulars Arun `
Varun `
Tarun `
Particulars Arun `
Varun `
Tarun `
By Balance b/d 50,000 30,000 20,000To Balance c/d 60,000 36,000 24,000 By Profit & Loss A/c 10,000 6,000 4,000
60,000 36,000 24,000 60,000 36,000 24,000 Balance Sheet as on 31st Mar, 2012
Liabilities Amount `
Amount `
Assets Amount `
Amount `
Capital A/c Debtors 60,000Arun 60,000 Less: Bad debts 1,000 59,000Varun 36,000 Furniture 17,000Tarun 24,000 1,20,000 Less: Furniture sold 1,900 15,100
Commission Payable to Cash in hand 17,000Manager 5,000 Bills Receivable 16,000 Closing Stock 9,000 Insurance Claim 8,000 1,74,000 1,74,000
[Note: The old reserve for doubtful debts (R.D.D.) as per Trial Balance = ` 2,800 is higher than the actual expense for the year. Therefore, the excess amount of R.D.D. will be shown on the credit side of the Profit & Loss Account.] Solution to Practice Q.26.: In the Books of Firm
Trading Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 1,00,000 By Sales A/c 2,00,000To Purchases A/c 1,37,500 Less: Return Inwards 2,500
Less: Return Outward 2,250 1,35,250 1,97,500To Wages A/c 9,500 Less: Sale of Machinery 3,600 1,93,900
By Goods Lost by Theft A/c 5,000 By Closing Stock A/c 20,000 By Gross Loss A/c 25,850 2,44,750 2,44,750
Profit and Loss Account for the year ended 31st Mar, 2012 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Gross Loss b/d 25,850 To Salaries A/c 6,000 To Printing and Stationery A/c 2,000 To Loss by Theft A/c 5,000 By Net Loss c/d To Loss on Sale of Machinery Dhrashti 19,625A/c 400 Srushti 19,625 39,250
39,250 39,250
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Partner’s Capital Account Dr. Cr.
Particulars Dhrashti `
Srushti `
Particulars Dhrashti `
Srushti `
To Drawings A/c 7,225 5,000 By Balance b/d 90,000 75,000To Profit & Loss A/c 19,625 19,625 To Balance c/d 63,150 50,375
90,000 75,000 90,000 75,000
Balance Sheet as on 31st Mar, 2012 Liabilities Amount
To Trade Charges A/c 12,000 To Carriage Inward A/c 5,000 To Coal, Gas and Water A/c 1,500 To Factory Rent A/c 2,000 To Gross Profit c/d 1,16,500 6,47,000 6,47,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Loss by Fire A/c 5,000 By Gross Profit b/d 1,16,500To Interest on Capital A/c By Commission Receivable A/c 500
Raj 8,700 Ranbir 7,800 16,500
To Carriage Outward A/c 3,000
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To General Expense A/c 5,500 To Unproductive Wages A/c 22,000 To Advertisement A/c 12,000
Less: Prepaid 8,000 4,000 To Discount A/c 3,000 To Outstanding Interest on Loan from Raj A/c 1,200 To Net Profit c/d
Raj 28,400 Ranbir 28,400 56,800
1,17,000 1,17,000
Partner’s Current Account Dr. Cr.
Particulars Raj `
Ranbir `
Particulars Raj `
Ranbir `
By Balance b/d 1,45,000 1,30,000 By Interest on Capital A/c 8,700 7,800To Balance c/d 1,82,100 1,66,200 By Profit and Loss A/c 28,400 28,400
1,82,100 1,66,200 1,82,100 1,66,200 Balance Sheet as on 31st Mar, 2012
Liabilities Amount `
Amount `
Assets Amount `
Amount `
Capital Goodwill 20,000Raj 1,82,100 Land & Building 77,000Ranbir 1,66,200 3,48,300 Plant & Machinary 1,50,000
Loan from Raj 20,000 Add: Wrongly Included in Add: Outstanding Interest 6% 1,200 21,200 Purchase 30,000 1,80,000
Closing Stock 20,000 Debtors 40,000
Commission Receivable 500 Insurance Claim 10,000 Cash in Hand 2,000
Cash at Bank 12,000 Prepaid Advertisement 8,000
3,69,500 3,69,500
Solution to Practice Q.29.: In the books of firm Trading Account for the year ended 31st Mar, 2010
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 83,000 By Sales A/c 4,20,000To Purchases A/c 1,97,000 By Closing Stock A/c 76,000To Wages A/c 7,500
Less: Advance 2,500 5,000 To Motive Power A/c 15,000
Less: Deposit 7,000 8,000 To Carriage A/c 7,000 To Gross Profit c/d 1,96,000 4,96,000 4,96,000
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2010 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Salaries A/c 13,000 By Gross Profit b/d 1,96,000Add: Outstanding 3,000 16,000 By Interest on Drawings A/c
To Bad Debts A/c 6,400 To Interest A/c 4,000 To Interest on Capital A/c
Anand 8,100 Pramod 5,400 13,500
To Depreciation A/c Loose Tools (10%) 1,700 Motor Van (7.5%) 6,600 Machinery (12.5%) 7,500 15,800
To Net Profit c/d
Anand’s A/c 77,160 Pramod’s A/c 51,440 1,28,600
1,96,300 1,96,300
Partner’s Current Account
Dr. Cr.
Particulars Anand `
Pramod `
Particulars Anand `
Pramod `
To Drawings A/c 12,000 8,000 By Balance b/d 16,200 10,800To Interest of Drawings A/c 180 120 By Interest on Capital A/c 8,100 5,400 By Profit and Loss A/c 77,160 51,440To Balance c/d 89,280 59,520
Less: Wages paid for making Furniture 5,000 14,500
To Works Manager’s salary A/c 3,600 To Gross Profit c/d 1,00,400 3,44,000 3,44,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Sundry Expense A/c 3,800 By Gross Profit b/d 1,00,400To Rent A/c 22,000 By Commission A/c 12,500
Add: Outstanding 2,000 24,000 By Interest Receivable on To Printing & Stationery A/c 1,700 Debenture A/c 1,000To Insurance A/c 2,000 By Interest on Drawings A/c
Less: Prepaid 500 1,500 Samir 450To Provident Fund Karan 250 700Contribution A/c 1,250 To Advertisement A/c 4,800
Less: Prepaid 3,200 1,600 To Bad debts A/c 2,500 To Interest on Capital A/c
Samir 12,000 Karan 10,200 22,200
To Salary to Samir A/c 6,000 To Commission to Karan A/c 1,004 To Net Profit c/d
Samir 24,523 Karan 24,523 49,046
1,14,600 1,14,600
Partner’s Current Account
Dr. Cr.
Particulars Anand `
Pramod `
Particulars Anand `
Pramod `
To Drawings A/c 18,000 10,000 By Balance b/d 2,00,000 1,70,000To Interest of Drawings A/c 450 250 By Interest on Capital A/c 12,000 10,200 By Profit and Loss A/c 24,523 24,523 By Salary A/c 6,000 –To Balance c/d 2,24,073 1,95,477 By Commission A/c – 1,004
2,42,523 2,05,727 2,42,523 2,05,727
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Creditors 87,000 Add: Wages paid for making Add: Unrecorded Purchases 5,000 92,000 new Furniture 5,000 85,000
Outstanding Rent 2,000 Land & Building 2,50,000Provident Fund 35,000 10% Debenture 40,000Interest on Provident Fund Add: Interest Receivable 1,000 41,000Investment 2,500 Prepaid Insurance 500 Prepaid Advertisement 3,200 Provident Fund Investment 38,000 Cash in hand 1,350 Closing Stock 41,000 5,51,050 5,51,050
Solution to Practice Q.31.: In the books of firm
Trading Account for the year ended 31st Mar, 2010 Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Opening Stock A/c 12,000 By Sales A/c 1,10,000To Purchases A/c 98,500 Less: Return Inwards 2,000 1,08,000To Import Duty A/c 2,100 By Goods stolen from Godown A/c 8,000To Gross Profit c/d 28,400 By Closing Stock A/c 25,000 1,41,000 1,41,000
Profit and Loss Account for the year ended 31st Mar, 2010
Dr. Cr.
Particulars Amount `
Amount `
Particulars Amount `
Amount `
To Salaries and Wages A/c 26,000 By Gross Profit b/d 28,400To Carriage Outward A/c 1,800 By Dividend Received A/c 1,500To Insurance Premium A/c 2,200 To Postage and Telegram A/c 1,750
Less: Unused Postage Stamps 250 1,500 To Advertisements A/c 3,000 To Bad Debts A/c 1,000
Add: New Bad Debts 2,000 3,000 To Printing and Stationery A/c 2,400 To Interest on Bank Loan A/c 3,000 To Loss by theft A/c 8,000 To Depreciation A/c By Net Loss c/d