HOMEWORK-2 Partnership - Final A/c

1. Amit and Aditya are partners sharing profit in the ratio of 3:1. Their trial balance as on 31st
December, 2022 was as follows.

Debit ₹ Credit ₹
Machinery 35,000 Capital:
Salaries 15,850 Amit 50,000
Carriage Outward 2,140 Aditya 30,000 80,000
Building 54,000 Trading Account – Gross Profit 85,700
Furniture 25,000 Creditors 44,560
Debtors 48,200 Bank Loan 21,000
Bad Debts 1,400 Discount 4,500
Cash at Bank 1,200 Commission 1,000
Investment 10,000 Outstanding Wages 1,200
Cash in Hand 1,170 Provision for Doubtful Debts 1,000
Establishment Charges 13,000
Closing Stock 10,000
Depreciation on Machinery 3,500
Publicity 5,000
Drawings:
Amit 5,000
Aditya 3,000 8,000
Rent and Rates 5,500
2,38,960 2,38,960
Additional Information:
(i) Prepaid Publicity ₹500
(ii) Commission received in advance ₹200
(iii) Provide for doubtful debts @5% on Sundry debtors.
(iv) Allow interest on partners’ capital @5% p.a. 8 Marks 2023

2. Pradeep and Pranab are partners in a firm. The trial balance of the firm as on 31st March,
2020 was as follows:
Debit ₹ Credit ₹
Machinery 54,000 Capital :
Goodwill 10,000 Pradeep 50,000
Patent 20,000 Pranab 40,000 90,000
Sundry debtors 21,000 Sundry Creditors 5,000
Cash in hand 1000 Interest on Investment 400
Closing Stock 25,000 Sundry Receipts 200
Investments 10,000 Bills Payable 2,000
Depreciation on Machinery 6,000 Bank Overdraft 10,000
Rent 10,000 Outstanding wages 500
Carriage outward 1,000 Trading Account (Gross Profit) 71,000
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 Taxes 500 Discount 900
Telephone Charges 3,600
Commission 800
Drawings :
Pradeep 5000
Pranab 4000 9,000
Salaries 8,000
Bank Charges 100
1,80,000 1,80,000
Prepare a P/L Account, P/L Appropriation Account and a Balance Sheet for the year
ended 31st March 2021 after taking into consideration of the following adjustments.

(i) Write off ₹1,000 as bad debts and provide a 5% provision on sundry Debtors
for doubtful debts.
(ii) Interest in investment accrued ₹600
(iii) Interest on Partner’s capital is allowed @5% p.a.
(iv) Create a General Reserve by taking ₹5,000 out of profit. 8 Marks 2022

3. Nanu and Manu are partners of a firm. The trial balance of the firm as on 31st March, 2019
was a follows.
Debit ₹ Credit ₹
Plant & Machinery 50,000 Capital:
Goodwill 5,000 Nanu 40,000
Sundry Debtors 31,000 Manu 30,000 70,000
Closing Stock 20,000 Sundry Creditors 10,000
Salaries 7,000 Commission 3,000
Depreciation on Plant and Sundry Receipt 200
Machinery 5,000 Outstanding wages 600
Stationery 1,000 Interest on Investment 200
Insurance 2,000 Trading Account—Gross Profit 50,000
Cash in hand 1,000 Bank Loan 4,000
Investment 10,000
Drawings:
Nanu 4,000
Manu 2,000 6,000
1,38,000 1,38,000

Prepare Profit and Loss Account, P/L Appropriation Account and a Balance Sheet of the firm
for the year ended 31st March, 2019 after considering the following information:
(i) Write off ₹1,000 as bad debts and provide 5% provision for doubtful debts on
remaining debts.
(ii) Commission received in advance ₹500.
(iii) Transfer 10% of net Profit to General reserve.
(iv) Allow interest on capital @5% p.a. 8 Marks 2020