Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1) Stock is valued at cost or market price whichever is less. Hence, we value closing stock at Rs. 45000 2) Repairs were wrongly debited
1) Stock is valued at cost or market price whichever is less. Hence, we value closing stock at Rs. 45000 2) Repairs were wrongly debited to Purchases. We need to pass an entry to reverse the effects. Hence, debit Repairs A/c and deduct the same from Purchases. 3) Depreciation Machinery = Rs. 30,000 X 10% = Rs. 3,000 Furniture = Rs. 8,000 x 10% = Rs. 800 30 . 4. 4) Distribution of Profit Ram= Rs. 76,200 x 1/3 = Rs. 25,400 Shyam=Rs. 76,200 x 2/3 = Rs. 50,800 Amar and Akbar are running a partnership firm and share profits and losses in the ratio of 3:7. From the given Trial balance you are required to prepare a Trading and Profit & Loss A/C for the year ended 31st March, 2011 and a Balance Sheet as on that date, after taking into consideration the additional information provided. Trial Balance as on 31st March, 2011 Particulars Debit Amt. Rs. Credit Amt. Rs. Opening Stock 87,000 Bills Receivable 25,400 Wages and Salaries 64,000 Purchases 2.90,000 Sundry Debtors 88,000 Building 5,48,000 Discount 3,600 Audit Fees 24,600 Office Expenses 65,000 Cash at bank 29,870 Travelling expenses 45,590 Motor Car 1,20,000 Trade Expenses 45,600 Rent for 10 months 20,000 Reserve for doubtful debts 3,000 Sundry Creditors 2.60,000 Sales 6,80,000 General Reserve 2,00,000 Capital: Amar 2,13,660 Akbar 1,00,000 14,56,660 14,56,660 Adjustments: 1) Closing stock is valued at Rs. 1,54,000 2) Bills receivable included dishonoured bill of Rs. 8,000. 3) Goods worth Rs. 2500 were taken by Amar for personal use. 4) Depreciate Motor Car at 20% 5) Maintain RDD at 5% of debtors
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started