Question 8 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 8 Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 8 Chapter 2 – Unimax Class 12 Part 1

8. A and B are partners sharing Profits in ratio of 3 : 2. The under mentioned Trial balance was extracted from their books on 31st March, 2021.

Particulars Dr. Balance Cr. Balance
A’s Capital   350000
B’s Capital   250000
A’s Drawing 40000  
B’s Drawing 25000  
Opening Stock (as on 1st April, 2020) 60000  
Returns 6000 10000
Debtors and Creditors 120000 210000
Building 400000  
Furniture 40000  
Cash in Hand 60000  
Bank overdraft   2000
  64000  
Rent 24000  
Advertising expenditure 13000  
Travelling expenses 15000  
Telephone Charges 17000  
Carriage Inwards 23700  
Carriage Outwards 14300  
Commission   20000
Bills Receivable 20000  
Motor Van 100000  
Purchases and Sales 1000000 1200000
  2042000 2042000

You are required to prepare the Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31st March, 2021 and a Balance Sheet as on that date. The following adjustments are to be made :
(i) The value of stock on 31st March, 2021 was Rs. 82000.
(ii) Create a provision of 5% on debtors for doubtful debts.
(iii) Charge depreciation on Furniture at 15%, on Building at 2% and on Motor Van at 5%.
(iv) Provide for outstanding rent Rs. 2400 and outstanding telephone bill Rs. 2800.
(v) Partners are entitled to interest on Capital @ 5% per annum.

The solution of Question 8 Chapter 2 – Unimax Class 12 Part 1:

Trading And Profit & Loss Account For the year ended March. 31, 2006.

Particulars   Rs. Particulars   Rs.
To Opening Stock   60000 By Sale 1200000  
To Purchases 100000   Less Return 6000 1194000
Less Returns 10000 990000 By Closing Stock   82000
To Carriage inward   23700      
To Gross Profit c/d   202300      
    1276000     1276000
To Depreciation     By Gross Profit b/d   202300
– Furniture 6000   By Commission   20000
– Building 8000        
– Motor Van 5000 19000      
To Provision for bad debts   6000      
To Rent 24000        
Add Outstanding 2400 26400      
To Telephone Bills 17000        
Add Outstanding 2800 19800      
To Salary   64000      
To Advertisement   13000      
To Travelling expense   15000      
To Carriage Outward   14300      
To Net Profit          
– A 26880        
– B 17920 44800      
    222300     222300

Profit & Loss Appropriation Account For the year ended March. 31, 2006.

Particulars   Rs. Particulars Rs.
To Interest on Capital      By Net Profit 44800
– A 17500      
– B 12500 30000    
To Share of Profit         
– A (3/5) 8880      
– B (2/5) 5920 14800    
    44800   44800

Balance Shee As on 31.3.2006

Liabilities   Amount Assets   Amount
Creditors   210000 Building 400000  
Bank Overdraft   2000 Less Dep. 8000 392,000
Outstanding Rent   2400 Furniture 40,000  
Outstanding Bills   2800 Less Dep. 6,000 34000
A’s Capital 3,50000   Motor Van 100000  
Add Interest 17500   Less: Depreciation 5000 95000
Add Net Profit 8880   Cash in hand   60000
Less Drawings 40,000 336380 Bills receivable   20000
B’s Capital 250000   Debtors 120000  
Add Interest 12500   Less Provision 6000 114000
Add Net Profit 5920   Stock   82000
Less Drawings 25000 243420      
    797000     797000

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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