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 LI 3,00,000
Kamal LI 2,00,000
Kajal LI 1,00,000
Partner’s Current A/c: - Komal PAR.CUR.CR. 16,000
Kamal PAR.CUR.DR. 7,000
Kajal PAR.CUR.CR. 9,000
Opening Stock TD 68,000
Purchases & Sales TD/TC 1,94,000 4,16,000
Productive Wages TD 66,000
Office Salary PD 46,000
Opening Stock of Stationery PD 2,500
Purchase of Stationery PD 17,500
Insurance for year ended 01.07.19 (prepaid-3 mths) PD 4,500
Postage Telegram and Telephone PD 15,500
Customers(D) and Suppliers(C) A/c 1,61,600 1,27,000
ASSET/LIABILITY
Bills Receivable & Payable ASSET/LIABILITY 29,000 18,000
Sundry Expenses PD 4,400
Carriage PD 8,000
Clearing Agent’s Commission TD 8,000
Land ASSET 70,000
Building ASSET 1,14,000
Furniture and Fittings ASSET 35,000
Bad Debts and Bad Debts Reserve(RDD) PD/-BD 6,800 2,800
Plant & Machinery (Includes purchases of machinery Rs. 1,74,000
74,000/- on 01.06.18)(10mnths) ASSET
Discount PD/PC 7,800 5,200
Loss by fire PD 1,400
 Production Expenses TD 8,000
Advertisement PD 11,000
Bills Sent for Collection ASSET 9,000
Bank Charges and Interest PD 3,500
Investment in 15% Debentures on 1/04/2018 25,000
(Face value Rs.30,000/-) 4500-2000=2500-int. receivable
ASSET

Interest on Above Investments PC 2,000

Bad Debts Recovery PC 2,500
Balance with Bank ASSET 3,000
Cash on Hand ASSET 2,700
Goodwill ASSET 30,000
Commission PD 7,200
Office Equipment’s ASSET 32,800
Royalties – Production TD 11,500
Loading Charges PD 8,700
Refreshments Expenses PD 5,100
TOTAL 11,98,50 11,98,500
0

Adjustments: -
1. 1.1)Closing stock of goods represents cost Rs.95, 000/- and market value Rs.
1,10,000/- TC/ASSET
1.2) Stock of Stationery on 31st March 2019 was Rs. 2,000/- PD/ASSET
2. Goods costing Rs. 3,000/- were taken by Kamal for personal use. It remains
unrecorded. TC/PART.CUR.DR.
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
+DEBT / -BANK BAL. / -DIS. ALLOWED
4. Office salary includes prepaid salary of Rs. 6,000/- -OFFICE SAL./ASSET
5. Depreciate building, plant & machinery and furniture at the rate of 12% p.a.
-ASSET/PD
6. Allow interest on capital at the rate of 10% p.a. PART.CUR.CR./PD
7. A bill of Rs. 3,000/-, which was sent for collection, was dishonoured and noting
charges were paid by us Rs. 100/- +DEBT / -CASH BAL. / -BSFC
8. Outstanding telephone bill of Rs. 500/- +TELPHONE WALA/LIABILITY
 9. Write off Bad Debts Rs. 3,000/- and create Bad Debts Reserve @ 5% on debtors.
+BAD DEBTS/ -DEBTORS
10. Create provision for discount on debtors and creditors @ 2% and 1% respectively.
+DISCOUNT ALLOWED/ -DEBTORS &
+DISCOUNT RECEIVED/-CREDITORS

3 adjustment) (dishounour) Debtor’s/Customer’s A/c Dr. 1500 (+debtors)

To Bank A/c 1400 (-bank balance)
To Discount Allowed A/c 100 (-discount allowed)