Final Ac P2

6- July, 2023 Partnership Final A/c – Part 2
1. Shiba and Dhruba are partners in a firm. The trial balance of the firm as on 31st
March, 2021 was as follows:
Debit ₹ Credit ₹
Machinery 54,000 Capital :
Goodwill 10,000 Shiba 50,000
Patent 20,000 Dhruba 40,000 90,000
Sundry debtors 21,000 Sundry Creditors 5,000
Cash in hand 1000 Interest on Investment 400
Stock on 31-03-2020 25,000 Sundry Receipts 200
Investments 10,000 Bank Overdraft 10,000
Depreciation on Machinery 6,000 Outstanding wages 500
Establishment 10,000 Trading Account (Gross Profit) 71,000
Carriage outward 1,000 Discount 900
Taxes 500 Bills payable 2,000
Telephone Charges 3,600
Conveyance 800
Drawings :
Shiba 5000
Dhruba 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 2013
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HOMEWORK
4. Kajal and Karan are partners sharing profit in the ratio of 32:24. Their trial balance as on
31st December, 2020 was as follows.
Investment 25,000 Capital:
Sundry Debtors 10,700 Kajal 40,000
Advertisement 6,000 Karina 25,000 65,000
Salaries 17,600 Reserve fund 7,500
Commission 900 Gross Profit 41,550
Bad Debts 1,200 Rent received 500
Stock 32,000 Sundry creditors 12,000
Carriage outward 650 Outstanding rent 1,000
Drawings: Bank overdraft 4,500
Kajal 5,000 Loan from Kajal (on 1.07.2020) 6,000
Karina 3,000
8,000
Machinery 36,000
1,38,050 1,38,050
Prepare Profit and Loss Account and profit and appropriation account along with Balance
Sheet for the year ended 31st December, 2020 after taking into consideration the following
adjustments.
(i) Salaries outstanding ₹400

(ii) Interest on investment accrued ₹300
(iii) Interest on capital to be allowed @5% p.a.
(iv) Interest on drawings :
Kajal ₹120 Karina ₹80
5. Following is the Trial balance of Roy and Gupta as on 31st March, 2021.
Plant & Machinery 40,000 Capital:
Salaries 15,850 Roy 50,000
Freight on sales 3,000 Gupta 30,000 80,000
Building 54,000 Trading Account (Gross profit) 90,000
Goodwill 15,000 Creditors 47,250
Furniture 10,000 Bank Loan 21,000
Sundry Debtors 48,200 Sundry receipts 1,000
Bad Debts 1,400 Bills Payable 15,000
Cash at Bank 1,200
10% Investment (1-4-2020) 10,000
8% Fixed Deposit (1-7-2020) 10,000
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Cash in hand 600
Closing Stock 20,000
Drawings:
Roy 12,000
Gupta 8,000 20,000
2,54,250 2,54,250
Prepare profit and Loss Account and P/L Appropriation Account along with Balance Sheet
for the year ended 31st march, 2021. After taking into consideration the following
adjustments.
(i) Partners are entitled to interest on capital @ 5% p.a.

(ii) Transfer 10% of Net profit to Reserve Fund
(iii) Bad Debts provision to be created @5% on Debtors
(iv) Depreciate Machinery @10%
5. From the following trial balance of Das and Sarma, prepare Profit and Loss Account, P/L
Appropriation Account and a Balance Sheet for the year ended 31st March, 2021.
Dr. Cr.
Particulars ₹ Particulars ₹
Carriage Outward 250 Capital :
Printing and Stationery 250 Das 3,000
Closing Inventory 500 Sarma 3,000
Rent 150 Bills Payable 525
Bills receivable 300 Interest 600
Bad Debts 225 Provision for doubtful debts 125
Advertisement 200 Sundry Creditors 1,400
Investments 500 Bad debts recovered 320
ESI Contribution 100 Sale of Scrap 100
Cash at Bank 700 Gross Profit 3,660
Cash in hand 305
Fine for breach of Pollution Act 100
Furniture 990
Depreciation on Furniture 110
Salaries 900
Machinery 3,000
Sundry Debtors 2,150
Goodwill 2,000
12,730 12,730
Adjustments:
(i) Interest due but not received ₹200

(ii) Partners are entitled to interest on capital @5% p.a. Next Page >
(iii) Salary to be allowed to partners @₹900 per annum each.
(iv) ₹150 is to be written off as bad debts and the provision for the doubtful debt is to be
maintained at 5%.
(v) Machinery to be depreciated by 10%.

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6- July, 2023 Partnership Final A/c – Part 2

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(i) Salaries outstanding ₹400

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(i) Partners are entitled to interest on capital @ 5% p.a.

(i) Interest due but not received ₹200

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