Capital and drawings:DevanHemang
9000
8000
45,000
25,000
1000
1000
7000
70,000
200
200
18,250
1750
6000
Debtors and creditors
Stock (1-04-2004)
Goods return
Cash and Bank
Bills
Purchase and sales
Discount
Bad debts and bad debits reserve
Machines
Depreciation on machines
Furniture
Name of Account L/FNo.
Debit Rs.
Credit Rs.
40000
35000
35,000
-
1500
4000
8000
1,30,000
150
650
-
-
-
Illustration 1: Devan and Hemang are partners of a Partnership firm sharing a
profit in the proportion of 3:2. From the under noted trial balance and
adjustments as on 31-03-2005, prepare the final accounts of the firm.
Trial Balance of Deven and Hemang as on 31-03-2005
Name of Account L/FNo.
Debit Rs.
Credit Rs.
750-
7000--
36,000
12505000
300100400
12,000
15,000
100
Sundry expensesLeasehold building ( from 1-10-2002 for 5 years)Liability for unpaid wages8 % Tanvee’s loan (from 1-11-2004)GoodwillTrading expensesRent & taxesCarriage inwardBank interestInsurance PremiumSalaryWagesPrepaid insurance
2,70,300 2,70,300
---
100015000
---------
Adjustments : (1) The value of closing stock is Rs. 55,000, the market value is 10 % more.(2) Partners are allowed 6 % annual interest on the capital and the interest on
drawings is charged in the same way : Devan Rs. 400, Hemang Rs 350.(3) Provide depreciation on machines @ 10 %, on furniture @ 5 %.(4) Provide 5 % bad debts reserve on debtors.(5) Outstanding Expenses : Salary Rs 400, Sundry expenses Rs 75, and Rent
Rs 150.
Particulars ParticularsDate DevenRs
HemangRs
DateDeven
RsHemang
Rs
Partners’ Capital AccountDr Cr
31-03-05 To drawing a/c 9000 8000
Particulars ParticularsDate DevenRs
HemangRs
DateDeven
RsHemang
Rs
Partners’ Capital AccountDr Cr
31-03-05 To drawing a/c 9000 8000 1-4-04 By balance b/d 40,000 35,000
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000
Creditors 35,000
As on 31-03-2005 of Partnership Firm Of Deven And Hemang
ParticularsAmount
Rs. ParticularsAmount
Rs.
Trading Account
To Opening stock 25,000
Dr CrTrading Amount for the year ended on 31-03-2005 of partnership firm
of Deven and Hemang
ParticularsAmount
Rs. ParticularsAmount
Rs.
Trading Account
To Opening stock 25,000
Dr Cr
- Sales return 1000By Sales
To Purchase- Purchase return 1500
Trading Amount for the year ended on 31-03-2005 of partnership firm of Deven and Hemang
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bank overdraft 4000
Cash balance 1000
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Bank overdraft 4000
Cash balance 1000
ParticularsAmount
Rs. ParticularsAmount
Rs.
Trading Account
To Opening stock 25,000
Dr Cr
- Sales return 1000
By Sales
To Purchase
- Purchase return 1500
70,000
1,30,000
68,500
1,29,000
Trading Amount for the year ended on 31-03-2005 of partnership firm of Deven and Hemang
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Other expense
B.D. (Trial balance)
+B.D. (adjustment)
+B.D.R (adjustment)
- B.D.R (Trial balance)
200
650
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Furniture 6000
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Other expense
B.D. (Trial balance)+B.D. (adjustment)+B.D.R (adjustment)- B.D.R (Trial balance)
200
650
Administrative Exp :
Sundry Exp. 750
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Furniture 6000
Lease hold building 700
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Furniture 6000
Lease hold building 700
o/s wages 1000
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Furniture 6000
Lease hold building 700
o/s wages 1000
8 % Tanvee Loan
Liabilities
15,000
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Furniture 6000
Lease hold building 700
o/s wages 1000
8 % Tanvee Loan
Liabilities
15,000
Good will 36,000
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Other expense
B.D. (Trial balance)+B.D. (adjustment)+B.D.R (adjustment)- B.D.R (Trial balance)
200
650
Administrative Exp :
Sundry Exp. 750
Trading Exp: 1250
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Other expense
B.D. (Trial balance)+B.D. (adjustment)+B.D.R (adjustment)- B.D.R (Trial balance)
200
650
Administrative Exp :
Sundry Exp. 750
Trading Exp: 1250
Rent & Taxes 5000
ParticularsAmount
Rs. ParticularsAmount
Rs.
Trading Account
To Opening stock 25,000
Dr Cr
- Sales return 1000
By Sales
To Purchase
- Purchase return 1500
70,000
1,30,000
68,500
1,29,000
Carriage inward 300
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Other expense
B.D. (Trial balance)+B.D. (adjustment)+B.D.R (adjustment)- B.D.R (Trial balance)
200
650
Administrative Exp :
Sundry Exp. 750
Trading Exp: 1250
Rent & Taxes 5000
Bank interestFinancial Exp :
100
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)
Sales & Distribution Exp:
200 Discount (received) 150
Other expense
B.D. (Trial balance)+B.D. (adjustment)+B.D.R (adjustment)- B.D.R (Trial balance)
200
650
Administrative Exp :
Sundry Exp. 750
Trading Exp: 1250
Rent & Taxes 5000
Bank interestFinancial Exp :
100
Insurance Premium 400
Particulars Amount Rs.
Particulars Amount Rs.
Profit & Loss Account
Dr Cr
Discount (allowed)Sales & Distribution Exp:
200Discount (received) 150
Other expense
B.D. (Trial balance)+B.D. (adjustment)+B.D.R (adjustment)- B.D.R (Trial balance)
200
650
Administrative Exp :Sundry Exp. 750
Trading Exp: 1250
Rent & Taxes 5000
Bank interestFinancial Exp :
100
Insurance Premium 400Salary 12,000
ParticularsAmount
Rs. ParticularsAmount
Rs.
Trading Account
To Opening stock 25,000
Dr Cr
- Sales return 1000
By Sales
To Purchase
- Purchase return 1500
70,000
1,30,000
68,500
1,29,000
Carriage inward 300
Wages 15,000
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
Fixed Assets :
Machine 18,750
+ Depreciation 1750
20,000
Furniture 6000
Lease hold building 700
o/s wages 1000
8 % Tanvee Loan
Liabilities
15,000
Good will 36,000
Prepaid Insurance 100
Particulars ParticularsDate DevenRs
HemangRs
DateDeven
RsHemang
Rs
Partners’ Capital AccountDr Cr
31-03-05 To drawing a/c 9000 800031-03-05 To interest on
drawing a/c400 350
Particulars ParticularsDate DevenRs
HemangRs
DateDeven
RsHemang
Rs
Partners’ Capital AccountDr Cr
31-03-05 To drawing a/c 9000 800031-03-05 To interest on
drawing a/c400 350
31-03-05 To Balance C/D 59,805 46,620
ParticularsAmount
Rs. ParticularsAmount
Rs.
Profit & Loss Appropriations AccountDr Cr
Debtors 45,000
Creditors 35,000
Opening stock 25,000
- Sales return 1000
Bill receivable 7000
Bill payable 8000
ParticularsAmount
Rs.Particulars
Amount Rs.
ParticularsAmount
Rs.Particulars
Amount Rs.
ParticularsAmount
Rs.Particulars
Amount Rs.
Adjustments : (1) The value of closing stock is Rs. 55,000, the market value is 10 % more.(2) Partners are allowed 6 % annual interest on the capital and the interest on
drawings is charged in the same way : Devan Rs. 400, Hemang Rs 350.(3) Provide depreciation on machines @ 10 %, on furniture @ 5 %.(4) Provide 5 % bad debts reserve on debtors.(5) Outstanding Expenses : Salary Rs 400, Sundry expenses Rs 75, and Rent
Rs 150.
Adjustments : (1) The value of closing stock is Rs. 55,000, the market value is 10 % more.(2) Partners are allowed 6 % annual interest on the capital and the interest on
drawings is charged in the same way : Devan Rs. 400, Hemang Rs 350.(3) Provide depreciation on machines @ 10 %, on furniture @ 5 %.(4) Provide 5 % bad debts reserve on debtors.(5) Outstanding Expenses : Salary Rs 400, Sundry expenses Rs 75, and Rent
Rs 150.
ParticularsAmount
Rs.Particulars
Amount Rs. Particulars
Amount Rs.
ParticularsAmount
Rs.
Capital -Liabilities
Amount Rs.
Assets - Debts
Amount Rs. Particulars
Amount Rs. Particulars
Amount Rs.
Capital and drawings:DevanHemang
9000
8000
45,000
25,000
1000
1000
7000
70,000
200
200
18,250
1750
6000
Debtors and creditors
Stock (1-04-2004)
Goods return
Cash and Bank
Bills
Purchase and sales
Discount
Bad debts and bad debits reserve
Machines
Depreciation on machines
Furniture
40000
35000
35,000
-
1500
4000
8000
1,30,000
150
650
-
-
-
Name of Account L/FNo.
Debit Rs.
Credit Rs.
Partners’ Capital Account
31-03-05 To drawing a/c 9000 8000
31-03-05
31-03-05
To interest on drawing a/c
400 350
To Balance C/D 59,805 46,620
1-4-04 By balance b/d 40,000 35,000
31-3-05 By interest on capital 2400 2100
31-3-05 By profit and loss app a/c (share in divisible profit)
26,805 17,870
Particulars ParticularsDateDeven
RsHemang
Rs DateDeven
RsHemang
Rs
Partners’ Capital AccountDr Cr
31-03-05 To drawing a/c 9000 800031-03-05 To interest on
drawing a/c400 350
31-03-05 To Balance C/D 59,805 46,620
1-4-04 By balance b/d 40,000 35,00031-3-05 By interest on
capital 2400 2100
Particulars ParticularsDateDeven
RsHemang
Rs DateDeven
RsHemang
Rs
Partners’ Capital AccountDr Cr
31-03-05 To drawing a/c 9000 800031-03-05 To interest on
drawing a/c400 350
31-03-05 To Balance C/D 59,805 46,620
1-4-04 By balance b/d 40,000 35,00031-3-05 By interest on
capital 2400 2100
31-3-05 By profit and loss app a/c (share in divisible profit) 26,805 17,870
Particulars ParticularsDate DevenRs
HemangRs
DateDeven
RsHemang
Rs1-4-04
Partners’ Capital AccountDr Cr
Libilities Amount Rs.
Assets Amount Rs.
Balance Sheet
Debtors 45,000Creditors 35,000
Bill receivable 7000
Bill payable 8000
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