Partnership Final Accounts Questions: {Only For Private circulation}

[N.M. College]
Q. 1 From trial balance of Ram and Shyam you are required to prepare Trading and Profit
& Loss account for the year ending 31st March 2019 & the Balance sheet as on that date after
taking into consideration the additional information.

Trial Balance as on 31st March2019

Particulars Dr. Amt. Cr. Amt.

Opening Stock 35,000
Salaries & Wages 9,200
Cash on Hand 10,000
Purchases & Sales 2,25,200 3,30,000
Office Expenses 8,600
Productive Wages 14,000
Bills Receivable 8,000
Legal Expenses 3,000
Bad Debts 1,000
Purchase Return 6,000
Works Manager’s Salary 6,000
Commission 3,000 4,800
Investments 20,000
Debtors & Creditors 40,000 20,000
Sales Return 5,000
Bank Overdraft 10,000
Patents 3,000
Loose Tools 6,000
Furniture 12,000
Goodwill 13,000
Interest on Investments 1,200
Land & Building 50,000
Capital Accounts: - Ram 60,000
Shyam 40,000
 TOTAL 4,72,000 4,72,000

Adjustments:
1. Partners share profits & losses in their capital ratio.
2. The closing stock cost Rs. 20,000/-, market value Rs. 45,000/-
3. Ram has withdrawn goods worth Rs. 1,200/- for his personal use.
4. Uninsured goods worth Rs. 10,000/- were destroyed by fire.
5. Rs. 450/- written off as bad debts from debtors.
6. Outstanding salaries & wages Rs. 800/-
7. Depreciate Land & Building at 15%.
8. Both partners are entitled for salary of Rs. 4,000/- every year.
9. Shyam is entitled for commission @ 5% on net sales.

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 3,00,000
Kamal 2,00,000
Kajal 1,00,000
Partner’s Current A/c: - Komal 16,000
Kamal 7,000
Kajal 9,000
Opening Stock 68,000
Purchases & Sales 1,94,000 4,16,000
Productive Wages 66,000
Office Salary 46,000
Opening Stock of Stationery 2,500
Purchase of Stationery 17,500
Insurance for year ended 01.07.19 4,500
Postage Telegram and Telephone 15,500
Customers and Suppliers A/c 1,61,600 1,27,000
Bills Receivable & Payable 29,000 18,000
Sundry Expenses 4,400
Carriage 8,000
Clearing Agent’s Commission 8,000
Land 70,000
Building 1,14,000
Furniture and Fittings 35,000
Bad Debts and Bad Debts Reserve 6,800 2,800
Plant & Machinery (Includes purchases of 1,74,000
machinery Rs. 74,000/- on 01.06.18)
Discount 7,800 5,200
Loss by fire 1,400
Production Expenses 8,000
Advertisement 11,000
Bills Sent for Collection 9,000
Bank Charges and Interest 3,500
Investment in 15% Debentures on 1/04/2018 25,000
(Face value Rs.30,000/-)
Interest on Above Investments 2,000
Bad Debts Recovery 2,500
Balance with Bank 3,000
Cash on Hand 2,700
Goodwill 30,000
Commission 7,200
Office Equipment’s 32,800
Royalties - Production 11,500
Loading Charges 8,700
Refreshments Expenses 5,100
TOTAL 11,98,500 11,98,500

Adjustments: -
1. Closing stock of goods represents cost Rs.95, 000/- and market value Rs.
1,10,000/-. Stock of Stationery on 31st March 2019 was Rs. 2,000/-.
2. Goods costing Rs. 3,000/- were taken by Kamal for personal use. It remains
unrecorded.
 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.
4. Office salary includes prepaid salary of Rs. 6,000/-.
5. Depreciate building, plant & machinery and furniture at the rate of 12% p.a.
6. Allow interest on capital at the rate of 10% p.a.
7. A bill of Rs. 3,000/-, which was sent for collection, was dishonoured and noting
charges were paid by us Rs. 100/-.
8. Outstanding telephone bill of Rs. 500/-.
9. Write off Bad Debts Rs. 3,000/- and create Bad Debts Reserve @ 5% on debtors.
10. Create provision for discount on debtors and creditors @ 2% and 1% respectively.

Q. 3 Following is the trial balance of Tom and Jerry as on 31st March 2019.You are
required to prepare Trading and Profit and Loss Account for the year Ended 31 st
march 2019 and Balance sheet as on that date.
Trial Balance as On 31st March 2019
Particulars Debit Rs. Credit Rs.
Current Account of - Tom 12,000
-Jerry 15,000
Stock as on 1st April 2018 2,64,000
Purchases 5,28,000
Sales 9,24,000
Capital Account of – Tom 3,60,000
- Jerry 3,60,000
Wages 70,500
Salaries 45,000
Office Expenses 24,000
Bank Charges 7,800
Legal Charges 9,000
Machinery 2,70,000
Land and Building 3,90,000
Interest 10,800
Export Duty 11,400
Bad Debts 12,000
 Sundry Debtors 2,46,000
Travelling Expenses 9,600
Electricity Charges 6,900
Furniture 1,11,000
10% Debentures 1,20,000
(Purchased on 1st October 2018)
Sundry Creditors 3,09,000
Bank Overdraft 1,80,000
21,48,000 21,48,000

Additional Information:

1. Closing stock was valued at Rs. 2,40,000/-.

2. Goods costing Rs. 48,000/- and insurance co. admitted claim of Rs. 39,000/-.
3. Outstanding Expenses were: Salaries Rs. 9,000/- and Wages Rs. 7,200/-.
4. Depreciate machinery @ 10%p.a. and Land and Building @ 5%p.a.
5. Create Reserve for Bad and Doubtful Debts @ 5% on sundry debtors.
6. Legal charges paid in advance Rs. 3,600/-.
7. Provide interest on capital @ 8% p.a.

Q.4 From the following Trial Balance of Reena, Meena and Teena and additional
information, prepare Final accounts for year-ended 31st March 2019.
Trial Balance of Firm as on 31st March 2019.

Particulars Debit Rs. Credit Rs.

Partner’s Capital A/c: - Reena 4,00,000

Meena 3,00,000

Teena 5,00,000

Partner’s Drawings: - Reena 14,000

Meena 24,000

Teena 15,000

Stationery Consumed 16,000

Stock of Stationery as on 31.03.2019 1,400

Opening Stock 1,00,000

Purchases less Purchase Return 3,96,000

Sales less Sales Return 9,75,000

Goodwill 82,500

Premises 3,15,000

Machinery 1,85,000

Furniture 95,000

Petty Cash 1,400

Bank 10,000

Bank Loan 14,000

Accounts Receivable & Accounts Payable 1,08,000 85,000

Bills Receivable 36,000

Manufacturing Wages 79,000

Motor Van 40,000

Sales Promotion Expenses 18,000

Import Duty on Raw Material 70,000

Salaries & Wages 55,000

Postage & Telephone 35,000

Electricity Charges 40,000

Factory Expenses 15,000

Refreshment Expenses 9,500

Bad Debts & bad Debts Reserves 1,000 6,000

Sale of Machinery 6,000

Subscription for News Papers & Magazines 5,500

Noting Charges 700

 Office Expenses 5,000

Provident Fund Contribution 4,000

Sundry Income

Cash on Hand 7,000

Power & Fuel 16,000

Investments in Shares of ABC Co. (Face 1,40,000

Value Rs. 1,32,000/-

Land 3,46,000

TOTAL 22,86,000 22,86,000

Adjustments: -
1. Closing Stock is valued at Rs. 56,000/-.
2. Charge interest on drawings and allow interest on capital @ 10% p.a.
3. A customer with debit balance of Rs. 5,000/- was declared insolvent and his asset
could pay first and final dividend of 40 paise in a rupee. The books of accounts
show only the cash receipt.
4. Create provision for Bad & Doubtful Debts @ 4% on debtors.
5. Depreciate machinery and furniture @ 12% and @ 10% p.a. respectively.
6. Goods costing Rs. 6,000/- were lost by fire and insurance company did not admit
the claim of 55%.
7. Sale of machinery account represents selling price of machine sold, the machinery
representing an opening balance of Rs. 8,000/- was sold on 31.12.2018.
8. The ABC Co. declared dividend of 15% which is received by NEFT in business
bank account.
9. Outstanding expenses – Salaries = Rs. 2,500/-, Factory Expenses = Rs. 2,000/-,
Office Expenses = Rs. 1,500/-.

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 30,000 Capital Accounts

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

Insurance Premium 3,600 Gagan 60,000

(Paid for the year ended Current Accounts

30/09/2019)

Salaries 19,350 Gagan 6,000

Furniture 9,000 10% Loan {From 42,000

1/12/18}
Loose Tools 900 Purchase Return 3,000

Freight 600 Commission Received 24,000

Motor Car 84,000 Bank Overdraft 60,000

Sundry Expenses 4,800 Discount 1,950

Sales Return 6,000 Sales 1,92,000

Travelling Expenses 1,200 Discount Reserve 1,500

Bank 15,000 Bad Debts Reserve 6,000

Stock 54,000 Creditors 60,000

Bank Interest on overdraft 600

Building 77,700

Carriage 1,200

Discount 750

Plant & Machinery 49,950

Dep. on Plant & 4,050

Machinery

Export Duty 2,100

Purchases 90,000

Discount Reserves 1,200

Investments 22,560

Debtors 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/-.
2. Goods worth Rs. 3,000/- were destroyed by fire, nothing could be recovered from
the insurance company.
3. Depreciate building by 30%, furniture by 15% and motor car by 60%.
4. Increase Bad Debts Reserve by Rs. 9,000/-. Rs. 9,000/- for commission is still to
be received. Salaries are outstanding to the extent of Rs. 1,650/-.
5. Create 6% reserve for discount on debtors as well as creditors.
6. According to Partnership deed, 15% interest on partner’s capital is to be credited.
7. Goods selling price is Rs. 1,500/- donated to “GOOD DEED TRUST”. We
normally sell goods at 20% profit on selling price.

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