``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 PART.CAP.DR. 30,000 Capital Accounts

Interest on loan PD 1,890 Akash LIAB 1,20,000

Insurance Premium PD 3,600 Gagan LIAB 60,000

(Paid till 30/09/2019) Current Accounts

Salaries PD 19,350 Gagan PART.CAP.CR. 6,000

Furniture ASS 9,000 10% Loan {From 1/12/18} 42,000

LIAB (I.R. =1,400) PD/+L
Loose Tools ASS 900 Purchase Return –PURC. 3,000

Freight TD 600 Commission Received PC 24,000

Motor Car ASS 84,000 Bank Overdraft LIAB 60,000

Sundry Expenses PD 4,800 Discount PC 1,950

Sales Return -SALES 6,000 Sales TC 1,92,000

Travelling Expenses PD 1,200 Discount Re (RFDC) (-DA) 1,500

Bank ASS 15,000 Bad Debts Reserve (-BD) 6,000

Stock (OS) TD 54,000 Creditors LIAB 60,000

Bank Interest on overdraft 600

PD

Building ASS 77,700

Carriage TD 1,200

Discount PD 750

Plant & Machinery ASS 49,950

Dep. on Plant&Machinery PD 4,050

 Export Duty PD 2,100

Purchases TD 90,000

Discount Rs (RFDD)(-DR) 1,200

Investments ASS 22,560

Debtors ASS 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/-.
TD/ASSET
2. Goods worth Rs. 3,000/- were destroyed by fire, nothing could be recovered from the
insurance company. PD/TC
3. Depreciate building by 30%, furniture by 15% and motor car by 60%. PD/-ASSET
4. Increase Bad Debts Reserve by Rs. 9,000/- (New RDD) –BD/D
9,000/- for commission is still to be received. OUTSTANDING INCOME (ADD/ASSET)
Salaries are outstanding to the extent of Rs. 1,650/-. +SALARIES/LIABILITY
5. Create 6% reserve for discount on debtors as well as creditors. (RFDD/RFDC)
LESS DEBTORS/CREDITORS & ADD IN DISCOUNT A/L
6. According to Partnership deed, 15% interest on partner’s capital is to be credited.
PART.CAP.CR./PD
7. Goods selling price is Rs. 1,500/- donated to “GOOD DEED TRUST”. We normally sell
goods at 20% profit on selling price. TC/PD (amt 1,250)

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