Target Publications Pvt. Ltd.

Chapter 02: Partnership Final Accounts

02 Partnership Final Accounts

Solution to Practice Q.1.: In the Books of Firm
Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 25,000 By Sales A/c 1,42,600
To Purchases A/c 90,000 By Goods Taken Over A/c 3,000
To Wages A/c 24,000 By Closing Stock A/c 18,500
To Factory Expenses A/c 8,000
To Gross Profit c/d 17,100
1,64,100 1,64,100

Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 17,100
Doubtful Debts A/c
Old Bad Debts 700
Add: New Bad Debts 1,000
Add: New R.D.D. 2,200
Less: Old R.D.D. 1,000 2,900
To Carriage Outward A/c 1,700
To Advertisements A/c 3,500
To Insurance A/c 400
Less: Prepaid 100 300
To Depreciation A/c
Land and Building (10%) 3,000
Furniture (20%) 600 3,600
To Office Expenses A/c 2,300
To Net Profit c/d
Suresh 1,600
Ramesh 1,200 2,800

17,100 17,100

Partner’s Current Account

Dr. Cr.
Suresh Ramesh Suresh Ramesh
Particulars Particulars
` ` ` `
To Drawings A/c 3,000 − By Balance b/d 20,000 25,000
(Goods withdrawn) By Profit & Loss A/c 1,600 1,200
To Balance c/d 18,600 26,200
21,600 26,200 21,600 26,200

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Land and Building 30,000
Suresh 18,600 Less: Depreciation (10%) 3,000 27,000
Ramesh 26,200 44,800 Furniture 3,000
Sundry Creditors 49,000 Less: Depreciation (20%) 600 2,400
Unpaid Wages 1,000 Debtors 45,000
Less: New Bad Debts 1,000
44,000
Less: New R.D.D. (5%) 2,200 41,800
Closing Stock 18,500
Prepaid Insurance 100
Cash at Bank 5,000
94,800 94,800

Solution to Practice Q.2.: In the books of Firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 45,000 By Sales A/c 1,87,500
To Purchase A/c 1,12,500 Less: Return Inward 3,600 1,83,900
Less: Return Outward 1,500 1,11,000 By Goods Distributed as
To Productive Wages A/c 5,250 Free Sample A/c 1,250
Add: Outstanding 300 5,550 By Closing Stock A/c 28,000
To Gross Profit c/d 51,600
2,13,150 2,13,150
st
Profit and Loss Account for the year ended 31 Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 51,600
Doubtful Debts A/c By Discount A/c 1,500
Old Bad Debts 600
Add: New Bad Debts –
Add: New R.D.D. 3,825
Less: Old R.D.D. – 4,425
To Depreciation A/c
Building (5%) 2,715
Machinery (10%) 2,250 4,965
To Salaries A/c 9,300
To Rent, Rates, Insurance A/c 5,100
Less: Prepaid 200 4,900
To Discount A/c 1,950
To Unproductive Wages A/c 900
To Advertisement A/c (Goods
distributed as Free Samples) 1,250
To Net Profit c/d
Sona 15,246
Mona 10,164 25,410
53,100 53,100
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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Partner’s Capital Account
Dr. Cr.
Sona Mona Sona Mona
Particulars Particulars
` ` ` `
To Drawings A/c 16,500 15,000 By Balance b/d 52,500 67,500
By Profit & Loss A/c 15,246 10,164
To Balance c/d 51,246 62,664
67,746 77,664 67,746 77,664
Balance Sheet as on 31st Mar, 2007
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Machinery 22,500
Sona 51,246 Less: Depreciation (10%) 2,250 20,250
Mona 62,664 1,13,910 Building 54,300
Sundry Creditors 45,000 Less: Depreciation (5%) 2,715 51,585
Bank Overdraft 15,000 Sundry Debtor 76,500
Outstanding Productive Wages 300 Less: New R.D.D. (5%) 3,825 72,675
Cash 1,500
Prepaid Rent, Rates, Insurance 200
Closing Stock 28,000
1,74,210 1,74,210

Solution to Practice Q.3.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2006
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 90,000 By Sales A/c 3,75,000
To Purchases A/c 2,25,000 Less: Return Inward 7,200 3,67,800
Less: Return Outward 3,000 2,22,000 By Goods distributed as Free
To Productive Wages A/c 10,500 Samples A/c 2,500
Add: Outstanding 600 11,100 By Closing Stock A/c 50,000
To Gross Profit c/d 97,200
4,20,300 4,20,300
Profit and Loss Account for the year ended 31st Mar, 2006
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 97,200
Doubtful Debts A/c By Discount Received A/c 3,000
Old Bad Debts 1,200
Add: New Bad Debts –
Add: New R.D.D. 7,650
Less: Old R.D.D. – 8,850
To Unproductive Wages A/c 1,800
To Salaries A/c 18,600
To Rent, Rates & Insurance A/c 10,200
Less: Prepaid Insurance 400 9,800
To Discount Allowed A/c 3,900
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
To Advertisement A/c (goods
distributed as Free Samples) 2,500
To Interest on Overdraft A/c 1,500
To Depreciation A/c
Building (5%) 5,430
Machinery (10%) 4,500 9,930
To Net Profit c/d
Premlal’s A/c 21,660
Sundarlal’s A/c 21,660 43,320
1,00,200 1,00,200
Partner’s Capital Account
Dr. Cr.
Premlal Sundarlal Premlal Sundarlal
Particulars Particulars
` ` ` `
To Drawings A/c 33,000 30,000 By Balance b/d 1,05,000 1,35,000
By Profit & Loss A/c 21,660 21,660
To Balance c/d 93,660 1,26,660
1,26,660 1,56,660 1,26,660 1,56,660
Balance Sheet as on 31st Mar, 2006
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Machinery 45,000
Premlal 93,660 Less: Depreciation (10%) 4,500 40,500
Sundarlal 1,26,660 2,20,320 Building 1,08,600
Sundry Creditors 90,000 Less: Depreciation (5%) 5,430 1,03,170
Outstanding Productive Wages 600 Sundry Debtors 1,53,000
Bank Overdraft 30,000 Less: Reserve for Bad Debts
Add: Outstanding Interest 1,500 31,500 (5%) 7,650 1,45,350
Cash 3,000
Prepaid Insurance 400
Closing Stock 50,000
3,42,420 3,42,420

Solution to Practice Q.4.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 45,000 By Sales A/c 5,50,000
To Purchases A/c 2,25,000 By Closing Stock A/c 35,000
Less: Purchase of Machinery 15,000 2,10,000
To Manufacturing & Wages A/c 70,000
To Carriage Inwards A/c 2,500
To Factory Rent A/c 7,500
Add: Outstanding 300 7,800
To Coal Gas & Water A/c 1,000
To Gross Profit c/d 2,48,700
5,85,000 5,85,000

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 2,48,700
Doubtful Debts A/c
Old Bad Debts –
Add: New Bad Debts 2,250
Add: New R.D.D. −
Less: Old R.D.D. 200 2,050
To Trade Charges A/c 12,800
To Salaries A/c 18,000
To Carriage Outwards A/c 1,500
To Discount A/c 350
To Insurance A/c 700
To Office Rent A/c 30,000
To Printing & Stationery A/c 600
Add: Outstanding 600 1,200
To Advertising A/c 15,000
Less: Prepaid 10,000 5,000
To Interest on Loan A/c 2,850
To Net Profit c/d
Raju 87,125
Manju 87,125 1,74,250
2,48,700 2,48,700
Partner’s Capital Account
Dr. Cr.
Raju Manju Raju Manju
Particulars Particulars
` ` ` `
To Drawings A/c 4,500 3,500 By Balance b/d 35,000 30,000
By Profit & Loss A/c 87,125 87,125
To Balance c/d 1,17,625 1,13,625
1,22,125 1,17,125 1,22,125 1,17,125

Balance Sheet as on 31st Mar, 2012

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Plant & Machinery 95,000
Raju 1,17,625 Add: Additions wrongly
Manju 1,13,625 2,31,250 included in Purchases 15,000 1,10,000
Sundry Creditors 12,750 Furniture & Fixtures 17,500
Loan from Raju 38,000 Debtors 90,000
Add: Interest Payable 2,850 40,850 Less: New R.D.D. (2.5%) 2,250 87,750
Outstanding Expenses Bills Receivable 3,000
Factory Rent 300 Closing Stock 35,000
Printing & Stationery 600 900 Prepaid Advertising 10,000
Cash in Hand 10,000
Cash at Bank 12,500
2,85,750 2,85,750

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Solution to Practice Q.5.: In the Books of Firm
Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 45,000 By Sales A/c 4,50,000
To Purchases A/c 2,25,000 By Closing Stock A/c 35,000
To Carriage A/c 16,800
To Factory Rent A/c 1,500
Add: Outstanding 300 1,800
To Wages A/c 20,000
To Royalty A/c 1,000
To Gross Profit c/d 1,75,400
4,85,000 4,85,000
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 1,75,400
Doubtful Debts A/c By Discount Received A/c 750
Old Bad Debts −
Add: New Bad Debts −
Add: New R.D.D. 1,500
Less: Old R.D.D. 200 1,300
To Insurance A/c 1,050
Less: Prepaid 100 950
To Office Rent A/c 3,000
Add: Outstanding 600 3,600
To Printing and Stationery A/c 600
To Advertising A/c 15,000
To Salaries A/c 18,000
To Depreciation A/c
Plant and Machinery (6%) 4,500
Furniture (10%) 750 5,250
To Interest on Capital A/c
Kamlesh 1,500
Mahajan 1,200 2,700
To Net Profit c/d
Kamlesh 64,375
Mahajan 64,375 1,28,750
1,76,150 1,76,150
Partner’s Capital Account
Dr. Cr.
Kamlesh Mahajan Kamlesh Mahajan
Particulars Particulars
` ` ` `
To Drawings A/c 3,500 2,500 By Balance b/d 25,000 20,000
By Interest on Capital A/c 1,500 1,200
To Balance c/d 87,375 83,075 By Profit & Loss A/c 64,375 64,375
90,875 85,575 90,875 85,575

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Balance Sheet as on 31st Mar, 2007
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Plant & Machinery 75,000
Kamlesh 87,375 Less: Depreciation (6%) 4,500 70,500
Mahajan 83,075 1,70,450 Sundry Debtors 60,000
Sundry Creditors 15,000 Less: New R.D.D. (2.5%) 1,500 58,500
Bills Payable 2,000 Bills Receivable 3,000
Outstanding Expenses Furniture 7,500
Factory Rent 300 Less: Depreciation (10%) 750 6,750
Office Rent 600 900 Cash at Bank 14,500
Closing Stock 35,000
Prepaid Insurance 100
1,88,350 1,88,350

Solution to Practice Q.6.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2005
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 35,000 By Sales A/c 3,30,000
To Purchases A/c 2,25,200 By Goods destroyed by Fire
To Wages A/c 12,000 A/c 12,000
To Factory Expenses A/c 8,000 By Goods withdrawn by
Kumbhar A/c 1,200
To Gross Profit c/d 1,03,000 By Closing Stock A/c 40,000
3,83,200 3,83,200
Profit and Loss Account for the year ended 31st Mar, 2005
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 1,03,000
Doubtful Debts A/c By Discount A/c 4,000
Old Bad Debts 3,000 By Interest on Investments
Add: New Bad Debts 450 A/c 8,000
Add: New R.D.D. −
Less: Old R.D.D. – 3,450
To Salary and Wages A/c 4,200
Add: Outstanding 800 5,000
To Sundry Expenses A/c 13,600
To Travelling Expenses A/c 2,000
To Commission A/c 4,000
To Depreciation on Building
A/c (7.5%) 3,750
To Loss by Fire A/c 12,000
To Rent (outstanding) A/c 1,200
To Net Profit c/d
Kumbhar’s A/c 42,000
Maroti’s A/c 28,000 70,000
1,15,000 1,15,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account
Dr. Cr.
Kumbhar Maroti Kumbhar Maroti
Particulars Particulars
` ` ` `
To Drawings A/c 1,200 − By Balance b/d 60,000 40,000
By Profit & Loss A/c 42,000 28,000
To Balance c/d 1,00,800 68,000
1,02,000 68,000 1,02,000 68,000
Balance Sheet as on 31st Mar, 2005
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Goodwill 21,000
Kumbhar 1,00,800 Building 50,000
Maroti 68,000 1,68,800 Less: Depreciation (7.5%) 3,750 46,250
Sundry Creditors 20,000 Tools and Equipment 6,000
Bank Overdraft 10,000 Furniture 12,000
Outstanding Expenses: Investments 20,000
Salary and Wages 800 Closing Stock 40,000
Rent 1,200 2,000 Debtors 40,000
Less: Bad Debts 450 39,550
Bills Receivable 6,000
Cash in Hand 10,000
2,00,800 2,00,800

Solution to Practice Q.7.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 41,000 By Sales A/c 4,58,000
To Purchases A/c 2,50,000 Less: Return Inward 3,000 4,55,000
By Closing Stock A/c 90,000
To Gross Profit c/d 2,54,000
5,45,000 5,45,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Office Rent (outstanding) 12,000 By Gross Profit b/d 2,54,000
A/c By Royalties Received A/c 3,000
To Printing and Stationery Less: Received in Advance 1,000 2,000
(outstanding) A/c 1,200
To Interest on Overdraft A/c 500
To Provident Fund Contribution
A/c 15,000
To Salaries and Wages A/c 37,000
To Sundry Expenses A/c 3,000
To Audit Fees A/c 10,000
To Salary to Dubbu A/c 6,000

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
To Commission to Guddu A/c 2,540
(2,54,000 × 1%)
To Net Profit c/d
Dubbu 98,443
Guddu 70,317 1,68,760
2,56,000 2,56,000
Partner’s Current Account
Dr. Cr.
Dubbu Guddu Dubbu Guddu
Particulars Particulars
` ` ` `
To Drawings A/c 10,000 7,000 By Balance b/d 10,000 6,000
By Salary A/c 6,000 –
By Commission A/c – 2,540
To Balance c/d 1,04,443 71,857 By Profit and Loss A/c 98,443 70,317
1,14,443 78,857 1,14,443 78,857
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Partners Capital Goodwill 15,000
Dubbu 70,000 Patent & Trade Mark 15,000
Guddu 50,000 1,20,000 Premises 1,60,000
Partner’s Current Furniture 20,000
Dubbu 1,04,443 Provident Fund Investment 71,000
Guddu 71,857 1,76,300 Closing Stock 90,000
Provident Fund 65,000 Debtors 33,000
Add: Interest P.F. Investment 6,000 71,000 Cash in Hand 2,000
Bank Overdraft 12,000
Add: Interest 500 12,500
Outstanding Expenses
Office Rent 12,000
Printing & Stationary 1,200 13,200
Royalties Received in Advance 1,000
Creditors 12,000
4,06,000 4,06,000

Solution to Practice Q.8.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 20,800 By Sales A/c 1,50,400
To Purchases A/c 59,000 Add: Unrecorded Sales 6,000 1,56,400
To Wages A/c 28,000 By Closing Stock A/c 24,000
Add: Outstanding Wages 2,000 30,000
To Carriage A/c 8,600
To Trade Expenses A/c 600
To Gross Profit c/d 61,400

1,80,400 1,80,400

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 61,400
Doubtful Debts A/c By Commission A/c 800
Old Bad Debt –
Add: New Bad Debt –
Add: New R.D.D. 1,500
Less: Old R.D.D. – 1,500
To Depreciation on Plant &
Machinery A/c (10%) 8,000
To General Expenses A/c 1,400
To Electricity & Lighting A/c 6,000
Less: Deposit 1,500 4,500
To Advertisement A/c 3,000
To Interest on Bank Loan A/c 4,000
Add: Interest Payable 2,750 6,750
To Printing & Stationery A/c 4,200
To Discount A/c 800
To Net Profit c/d
Ram 19,230
Shyam 12,820 32,050
62,200 62,200

Partner’s Capital Account

Dr. Cr.
Ram Shyam Ram Shyam
Particulars Particulars
` ` ` `
By Balance b/d 80,000 60,000
To Balance c/d 99,230 72,820 By Profit & Loss A/c 19,230 12,820
99,230 72,820 99,230 72,820

Balance Sheet as on 31st Mar, 2007

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c Goodwill 20,000
Ram 99,230 Plant & Machinery 80,000
Shyam 72,820 1,72,050 Less: Depreciation (10%) 8,000 72,000
Bank Loan 60,000 Patents 10,000
Add: Interest Payable 2,750 62,750 Furniture 14,200
Creditors 41,000 Land & Building 1,06,600
Outstanding Wages 2,000 Debtors 24,000
Add: Unrecorded Sales 6,000
30,000
Less: R.D.D. @ 5% 1,500 28,500
Cash in Hand 1,000
Deposit with Electricity Board 1,500
Closing Stock 24,000
2,77,800 2,77,800

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Solution to Practice Q.9.: In the Books of Firm
Trading Account for the year ended 31st Mar 2013
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 90,000 By Sales A/c 8,14,000
To Purchases A/c 6,50,000 By Closing Stock A/c 1,10,000
To Wages A/c 35,000
To Carriage Inward A/c 7,000
To Gross Profit c/d 1,42,000

9,24,000 9,24,000

Profit and Loss Account for the year ended 31st Mar, 2013
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 1,42,000
Doubtful Debt A/c
Old Bad Debt 3,000
Add: New Bad Debt −
Add: New R.D.D. 7,500
Less: Old R.D.D. − 10,500
To Salaries A/c 28,000
Less: Advance to Workers 2,500 25,500
To Postage and Telegram A/c 4,000
To Insurance A/c 5,000
To Rent A/c 4,000
To Discount A/c 3,000
To Depreciation on Plant &
Machinery A/c (10%) 12,000
To Interest on Partners
Capital A/c
Meena 15,000
Reena 10,000 25,000

To Net Profit c/d

Meena 31,800
Reena 21,200 53,000

1,42,000 1,42,000

Partner’s Capital Account

Dr. Cr.
Meena Reena Meena Reena
Particulars Particulars
` ` ` `
To Drawings A/c 10,000 5,000 By Balance b/d 3,00,000 2,00,000
By Interest on Capital A/c 15,000 10,000
To Balance c/d 3,36,800 2,26,200 By Profit & Loss A/c 31,800 21,200

3,46,800 2,31,200 3,46,800 2,31,200

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2013
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Building 4,00,000
Meena 3,36,800 Plant & Machinery 1,20,000
Reena 2,26,200 5,63,000 Less: Depreciation (10%) 12,000 1,08,000
Sundry Creditors 1,80,000 Debtors 1,50,000
Bank Overdraft 20,000 Less: R.D.D. (5%) 7,500 1,42,500
Closing Stock 1,10,000
Advance to Workers 2,500
7,63,000 7,63,000

Solution to Practice Q.10.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 44,000 By Sales A/c 1,69,000
To Purchases A/c 1,22,500 By Closing Stock A/c 34,000
To Wages A/c 13,500
To Carriage A/c 2,100
To Gross Profit c/d 20,900
2,03,000 2,03,000
st
Profit and Loss Account for the year ended 31 Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 20,900
Doubtful Debts A/c By Sundry Income A/c 4,000
Old Bad Debt 3,200
Add: New Bad Debt –
Add: New R.D.D. 3,460
Less: Old R.D.D. 2,000 4,660
To Depreciation on Plant A/c
(10%) 7,500
To Rent, Rates and Insurance A/c 4,500
Less: Prepaid Insurance 600 3,900
To Salaries A/c 7,600
To Office Expenses A/c 5,400 By Net Loss c/d
Less: Drawings of Sujeet 800 4,600 Abhijeet 2,976
To Interest on Bank Loan A/c 1,600 Sujeet 1,984 4,960
29,860 29,860
Partner’s Capital Account
Dr. Cr.
Abhijeet Sujeet Abhijeet Sujeet
Particulars Particulars
` ` ` `
To Drawings A/c 6,000 4,000 By Balance b/d 1,32,000 88,000
To Drawings A/c – 800
To Profit and Loss A/c 2,976 1,984
To Balance c/d 1,23,024 81,216
1,32,000 88,000 1,32,000 88,000

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Balance Sheet as on 31st Mar, 2010
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Land & Building 1,70,000
Abhijeet 1,23,024 Plant 90,000
Sujeet 81,216 2,04,240 Less: Depreciation (10%) 7,500 82,500
Sundry Creditors 81,900 Cash at Bank 6,500
Bank Overdraft 80,000 Sundry Debtor 69,200
Outstanding Expenses 4,600 Less: R.D.D. (5%) 3,460 65,740
Pre-Received Rent 5,000 Furniture 50,000
10% Bank Loan 32,000 Closing Stock 34,000
Add: Interest Payable 1,600 33,600 Prepaid Insurance 600
4,09,340 4,09,340

Solution to Practice Q.11.: In the books of firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 15,000 By Sales A/c 79,800
To Purchases A/c 45,700 By Goods destroyed by Fire A/c 4,000
To Wages A/c 9,900 By Closing Stock A/c 40,200
Add: Outstanding 2,100 12,000
To Carriage Inwards A/c 4,500
Less: Carriage paid for 1,000 3,500
Machinery
To Gross Profit c/d 47,800
1,24,000 1,24,000

Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Carriage Outwards A/c 4,600 By Gross Profit b/d 47,800
To Printing and Stationery A/c 3,400
To Insurance A/c 750
Less: Prepaid 200 550
To Salaries A/c 10,000
To Postage and Telegram A/c 700
To Advertisement A/c 1,000
To Bad Debts A/c 250
To Loss by Fire A/c 800
To Depreciation A/c
Machinery (10%) 2,780
Furniture (15%) 960 3,740
To Net Profit c/d
Ajay A/c 11,380
Vijay A/c 11,380 22,760
47,800 47,800

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account
Dr. Cr.
Ajay Vijay Ajay Vijay
Particulars Particulars
` ` ` `
By Balance b/d 40,000 25,000
To Balance c/d 51,380 36,380 By Profit & Loss A/c 11,380 11,380
51,380 36,380 51,380 36,380
Balance Sheet as on 31st Mar, 2007
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital : Investment 3,500
Ajay 51,380 Machinery 26,800
36,380 87,760 Add: Carriage paid for
Vijay 1,000
Machinery
Bills Payable 6,000 27,800
Creditors 12,000 Less: Depreciation (10%) 2,780 25,020
Bank Overdraft 3,000 Furniture 6,400
Outstanding Salaries 1,700 Less: Depreciation (15%) 960 5,440
Outstanding Wages 2,100 Debtors 25,000
Prepaid Insurance 200
Bills Receivable 4,000
Cash at Bank 6,000
Closing Stock 40,200
Insurance Claim 3,200
1,12,560 1,12,560

Solution to Practice Q.12.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 15,000 By Sales A/c 1,58,000
To Purchases A/c 98,000 By Closing Stock A/c 15,000
Less: Return Inward 3,500 94,500 By Goods destroyed by Fire
To Carriage A/c 1,300 A/c 10,000
To Wages and Salaries A/c 11,000
To Gross Profit c/d 61,200
1,83,000 1,83,000
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 61,200
Doubtful Debts A/c By Interest on Investments
Old Bad Debts − A/c 500
Add: New Bad Debts −
Add: New R.D.D. 1,750
Less: Old R.D.D. 250 1,500
To Printing and Stationery A/c 1,750
Less: Unused 500 1,250
To Audit Fees A/c 700
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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
To Sundry Expenses A/c 3,500
To Provident Fund
Contribution A/c 800
To Travelling Expenses A/c 2,700
To Depreciation A/c
Building (5%) 5,000
Patents Right (10%) 400 5400
To Loss by Fire A/c 2,000
To Interest on Capital A/c
Ashok 1,500
Tanaji 2,000 3,500
To Net Profit c/d
Ashok 16,140
Tanaji 24,210 40,350
61,700 61,700
Partner’s Capital Account
Dr. Cr.
Ashok Tanaji Ashok Tanaji
Particulars Particulars
` ` ` `
By Balance b/d 30,000 40,000
By Interest on Capital A/c 1,500 2,000
To Balance c/d 47,640 66,210 By Profit & Loss A/c 16,140 24,210
47,640 66,210 47,640 66,210
Balance Sheet as on 31st Mar, 2007
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Building 1,00,000
Ashok 47,640 Less: Depreciation (5%) 5,000 95,000
Tanaji 66,210 1,13,850 Patents Right 4,000
Creditors 45,000 Less: Depreciation (10%) 400 3,600
Bank Loan 12,000 Furniture 8,000
Provident Fund 7,000 Sundry Debtors 35,000
Less: New R.D.D. (5%) 1,750 33,250
10% Investment 10,000
Add: Interest Receivable 500 10,500
Cash 4,000
Closing Stock 15,000
Insurance Claim Receivable 8,000
Unused Stationery 500
1,77,850 1,77,850

Solution to Practice Q.13.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 70,000 By Sales A/c 3,63,000
To Purchases A/c 1,94,000 Less: Return Inward 3,000 3,60,000
Less: Return Outward 4,000 1,90,000 By Goods withdrawn by
To Wages A/c 28,400 Jitesh A/c 3,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
To Dock Charges A/c 4,200 By Goods destroyed by Fire
A/c 8,000
To Gross Profit c/d 1,53,400 By Closing Stock A/c 75,000
4,46,000 4,46,000
Profit and Loss Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries A/c 15,600 By Gross Profit b/d 1,53,400
To Conveyance A/c 2,200 By Commission A/c 6,000
To Miscellaneous Expenses A/c 3,200 Add: Commission Receivable 1,600 7,600
To Warehouse Rent A/c 9,000
To Brokerage A/c 3,000
To Insurance A/c 4,800
Less: Prepaid Insurance 800 4,000
To Loss by fire A/c 1,600
To Depreciation A/c
Land and Building (5%) 9,000
Motor Van (5%) 3,000 12,000
To Net Profit c/d
Jitesh 55,200
Pritesh 55,200 1,10,400
1,61,000 1,61,000
Partner’s Capital Account
Dr. Cr.
Jitesh Pritesh Jitesh Pritesh
Particulars Particulars
` ` ` `
To Drawings A/c (goods) 3,000 − By Balance b/d 2,00,000 1,20,000
By Profit & Loss A/c 55,200 55,200
To Balance c/d 2,52,200 1,75,200
2,55,200 1,75,200 2,55,200 1,75,200
Balance Sheet as on 31st Mar, 2010
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Bills Receivable 40,000
Jitesh 2,52,200 Goodwill 76,000
Pritesh 1,75,200 4,27,400 Land and Building 1,80,000
Bills Payable 50,000 Less: Depreciation (5%) 9,000 1,71,000
Sundry Creditors 60,000 Motor Van 60,000
Less: Depreciation (5%) 3,000 57,000
Shares in Bajaj Ltd. 50,000
Cash in Hand 3,600
Sundry Debtors 56,000
Closing Stock 75,000
Prepaid Insurance 800
Insurance Claim 6,400
Commission Receivable 1,600
5,37,400 5,37,400
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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Solution to Practice Q.14.: In the Books of Firm
Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 35,000 By Sales A/c 1,80,000
To Purchases A/c 85,000 By Goods withdrawn for
Less: Purchase of Furniture 5,000 personal use A/c
Less: Purchase Returns 4,500 75,500 Ram 3,000
To Wages A/c 8,000 Lakhan 1,000 4,000
To Trade Expenses A/c 200 By Closing Stock A/c 24,000
To Gross Profit c/d 89,300
2,08,000 2,08,000
st
Profit and Loss Account for the year ended 31 Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 89,300
Doubtful Debts A/c
Old Bad Debts −
Add: New Bad Debts 1,000
Add: New R.D.D. 3,500
Less: Old R.D.D. − 4,500
To Tax & Insurance A/c 2,500
To Rent A/c 3,000
Less: Prepaid 200 2,800
To General Expenses A/c 500
To Warehouse Rent A/c 300
To Depreciatoon on Motor
Lorry A/c (10%) 1,500
To Salary to Ram’s A/c 1,500
To Commission to Lakhan’s
A/c (2% on Sales) 3,600
To Interest on Partners
Capital A/c
Ram 2,500
Lakhan 2,500 5,000
To Net Profit c/d
Ram 33,550
Lakhan 33,550 67,100
89,300 89,300
Partner’s Current Account
Dr. Cr.
Ram Lakhan Ram Lakhan
Particulars Particulars
` ` ` `
To Balance b/d – 2,000 By Balance b/d 5,000 –
To Drawings A/c 3,000 1,000 By Salary A/c 1,500 –
(Goods withdrawn for personal By Commission A/c
use) (2% on Sales) – 3,600
By Interest on Partners Capital A/c 2,500 2,500
To Balance c/d 39,550 36,650 By Profit & Loss A/c 33,550 33,550
42,550 39,650 42,550 39,650
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Furniture & Fixtures 20,000
Ram 25,000 Add: Wrongly included in
Lakhan 25,000 50,000 Purchases 5,000 25,000
Current Motor Lorry 15,000
Ram 39,550 Less: Depreciation (10%) 1,500 13,500
Lakhan 36,650 76,200 Debtors 71,000
Sundry Creditors 20,100 Less: New Bad Debts 1,000
Bills Payable 3,000 70,000
Less: R.D.D. (5%) 3,500 66,500
Bills Receivable 6,100
Closing Stock 24,000
Prepaid Rent 200
Bank 14,000
1,49,300 1,49,300

Solution to Practice Q.15.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 28,788 By Sales A/c 2,05,000
To Purchase A/c 1,25,225 Less: Sales Return 4,250 2,00,750
Less: Return 3,230 1,21,995 By Closing Stock A/c 15,000
To Wages A/c 20,167
To Gross Profit c/d 44,800
2,15,750 2,15,750

Profit and Loss Account for the year 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 44,800
Doubtful Debts A/c By Commission A/c 245
Old Bad Debt 315 By Dividend on Investment
Add: New Bad Debt 200 A/c 825
Add: New R.D.D. 1,000
Less: Old R.D.D. 500 1,015
To Salaries A/c 13,677
To Advertisement A/c 3,000
Less: Prepaid 2,500 500
To Insurance A/c 320
To Depreciation A/c
Furniture (10%) 675
Machinery (5%) 375 1,050
To Interest on Capital A/c
Keshav 1,350
Devidas 1,750 3,100

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To Commission to Keshav A/c 448

To Salaries to Devidas A/c 2,000
To Net Profit c/d
Keshav 11,880
Devidas 11,880 23,760

45,870 45,870

Partner’s Capital Account

Dr. Cr.
Keshav Devidas Keshav Devidas
Particulars Particulars
` ` ` `
To Drawings A/c 3,000 1,500 By Balance b/d 27,000 35,000
By Salaries A/c – 2,000
By Commission A/c 448 –
By Interest on Capital A/c 1,350 1,750
To Balance c/d 37,678 49,130 By Profit & Loss A/c 11,880 11,880

40,678 50,630 40,678 50,630

Balance Sheet as on 31st Mar, 2007

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Debtors 50,200
Keshav 37,678 Less: New Bad debts 200
Devidas 49,130 86,808 50,000
Creditors 31,073 Less: New R.D.D. (2%) 1,000 49,000
Furniture 7,450
Less: Depreciation (10%) 675 6,775
Machinery 7,500
Less: Depreciation (5%) 375 7,125
Prepaid Advertisement 2,500
Investment 9,500
Cash and Bank 27,981
Closing Stock 15,000

1,17,881 1,17,881

Solution to Practice Q.16: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 20,000 By Sales A/c 2,40,000
To Purchases A/c 1,20,000 By Closing Stock A/c 37,000
To Wages A/c 14,000
To Carriage A/c 5,000
To Gross Profit c/d 1,18,000
2,77,000 2,77,000
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 1,18,000
Doubtful Debts A/c By Interest on Drawings A/c
Old Bad Debts 1,000 Jay 100
Add: New Bad Debts – Vijay 200 300
Add: New R.D.D. 1,950 By Excess R.D.D. A/c 50
Less: Old R.D.D. 3,000 – By Commission A/c 1,000
To Interest on Capital A/c By Reserve for Discount on
Jay 3,840 Creditors A/c
Vijay 1,920 5,760 Old Discount on Creditor −
To Discount A/c 800 Add: New Discount on
Add: New R.F.D.D. 741 1,541 Creditor –
To Printing & Stationery A/c 3,300 Add: New Reserve for
Less: Stock of Stationery 500 2,800 Discount on Creditors 1,080
To Depreciation A/c Less: Old Reserve for
Building (20%) 24,000 Discount on Creditor − 1,080
Machinery (15%) 9,000 33,000
To Salaries & Wages A/c 10,000
To Interest on Bank Loan A/c 3,900
Add: Outstanding 2,100 6,000
To Net Profit c/d
Jay 40,886
Vijay 20,443 61,329

1,20,430 1,20,430

Partner’s Current Account

Dr. Cr.
Jay Vijay Jay Vijay
Particulars Particulars
` ` ` `
To Balance b/d – 4,000 By Balance b/d 3,000 –
To Drawings A/c 2,000 4,000 By Interest on Capital A/c 3,840 1,920
To Interest on Drawings A/c 100 200 By Profit & Loss A/c 40,886 20,443
To Balance c/d 45,626 14,163

47,726 22,363 47,726 22,363

Balance Sheet as on 31st Mar, 2012

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Building 1,20,000
Jay 64,000 Less: Depreciation (20%) 24,000 96,000
Vijay 32,000 96,000 Machinery 60,000
Current A/c Less: Depreciation (15%) 9,000 51,000
Jay 45,626 Motor Lorry 25,000
Vijay 14,163 59,789 Closing Stock 37,000

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Bank Loan @ (12%) 50,000 Debtors 40,000
Add: Outstanding Interest 2,100 52,100 Less: New Bad Debts 1,000
Creditors 36,000 39,000
Less: R.F.D.C.( 3%) 1,080 34,920 Less: R.D.D. (5%) 1,950
Bills Payable 3,000 37,050
Less: R.F.D.D. (2%) 741 36,309
Stock of Stationery 500
2,45,809 2,45,809

Solution to Practice Q.17.: In the books of firm

Trading Account for the year ended 31st Mar, 2006
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 28,000 By Sales A/c 1,95,300
To Purchases A/c 1,04,000 Less: Sales Return 6,300 1,89,000
Add: Unrecorded Purchase 3,000 By Closing Stock A/c 37,500
1,07,000
Less: Purchase Return 2,600 1,04,400
To Wages A/c 25,100
Add: Outstanding 4,700 29,800
To Gross Profit c/d 64,300
2,26,500 2,26,500
Profit and Loss Account for the year ended 31st Mar, 2006
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries A/c 11,300 By Gorss Profit b/d 64,300
Add: Outstanding 3,400 14,700 By Interest A/c 4,800
To Insurance A/c 4,500
Less: Prepaid 1,500 3,000
To Advertisement A/c 9,300
To Rent and Taxes A/c 4,700
To Bad Debts A/c 1,200
Add: Reserve for Bad Debts 1,150 2,350
To Depreciation A/c
Furniture (10%) 1,870
Land & Building (5%) 2,415 4,285
To Net Profit c/d
Swati’s A/c 10,255
Swity’s A/c 10,255
Sweta’s A/c 10,255 30,765
69,100 69,100
Partner’s Capital Account
Dr. Cr.
Swati Swity Sweta Swati Swity Sweta
Particulars Particulars
` ` ` ` ` `
By Balance b/d 60,000 40,000 20,000
By Profit & Loss A/c 10,255 10,255 10,255
To Balance c/d 70,255 50,255 30,255
70,255 50,255 30,255 70,255 50,255 30,255
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2006
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c: Debtors 24,200
Swati 70,255 Less: Bad Debts 1,200
Swity 50,255 23,000
Sweta 30,255 1,50,765 Less: Reserve for Bad Debts
Bills Payable 18,100 (5%) 1,150 21,850
Creditors 36,000 Bills Receivable 62,400
Add: Unrecorded Purchases 3,000 39,000 Land and Building 48,300
Outstanding Expenses Less: Depreciation (5%) 2,415 45,885
Salaries 3,400 Cash at Bank 30,000
Wages 4,700 8,100 Furniture 18,700
Less: Depreciation (10%) 1,870 16,830
Closing Stock 37,500
Prepaid Insurance 1,500
2,15,965 2,15,965

Solution to Practice Q.18.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 17,000 By Sales A/c 75,500
To Purchases 47,500 Less: Sales Returns 1,500 74,000
Add:Unrecorded Purchases 1,500 By Closing Stock A/c 10,000
49,000
Less: Purchase Returns 1,000 48,000
To Gross Profit c/d 19,000
84,000 84,000

Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 19,000
Doubtful Debts A/c By Reserve for Discount on
Old Bad Debts Creditors A/c
Add: New Bad Debts Old Discount on Creditor 600
Add: New R.D.D. 880 Add: New Discount on
Less: Old R.D.D. 400 480 Creditor –
To Stationery A/c 2,000 Add: New Reserve for
Less: Unused Stationery 400 1,600 Discount on Creditors 420
To Advertisement A/c 2,700 Less: Old Reserve for
Less: Prepaid 2,000 700 Discount on Creditor 200 820
To Rent, Rates & Insurance By Interest Receivable A/c 150
A/c 1,400
To Shop Fittings written off
A/c 3,200

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To Reserve for Discount on
Debtors A/c
Old Discount on Debtors 400
Add: New Discount on Debtors −
Add: New Reserve for
Discount on Debtors 335
Less: Old Reserve for
Discount on Debtors 300 435
To Net Profit c/d
Ramakant 8103
Maruti Sheth 4052 12,155
19,970 19,970
Partner’s Capital Account
Dr. Cr.
Ramakant Maruti Sheth Ramakant Maruti Sheth
Particulars Particulars
` ` ` `
To Drawings A/c 1,500 1,250 By Balance b/d 25,000 30,000
By Profit & Loss A/c 8,103 4,052
To Balance c/d 31,603 32,802
33,103 34,052 33,103 34,052
st
Balance Sheet as on 31 Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Leasehold Property 30,000
Ramakant 31,603 Shop Fittings 16,000
Maruti Sheth 32,802 64,405 Less: Written Off 3,200 12,800
Sundry Creditors 12,500 Debtors 17,600
Add: Unrecorded Purchases 1,500 Less: R.D.D. (5%) 880
14,000 16,720
Less: Reserve for Discount (3%) 420 13,580 Less: Reserve for Discount (2%) 335 16,385
5% Government Bonds 6,000
Add: Interest Receivable 150 6,150
Stock of Stationery 400
Closing Stock 10,000
Prepaid Rent 250
Prepaid Advertisement 2,000
Bank
77,985 77,985

Solution to Practice Q.19.: In the books of firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 80,000 By Sales A/c 3,80,000
To Purchases A/c 1,30,000 Add: Unrecorded Sales 15,000
Less: Returns 4,000 1,26,000 3,95,000
To Royalties A/c 14,000 Less: Returns 5,000 3,90,000
By Closing Stock A/c 90,000
To Gross Profit c/d 2,60,000
4,80,000 4,80,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 2,60,000
Doubtful Debts A/c By Reserve for Discount on
Old Bad Debts 7,500 Creditors A/c
Add: New Bad Debts 2,000 Old Discount on Creditor −
Add: New R.D.D. 4,400 Add: New Discount on
Less: Old R.D.D. 2,000 11,900 Creditor –
To Reserve for Discount on Add: New Reserve for
Debtors A/c Discount on Creditors 400
Old Discount on Debtors 5,000 Less: Old Reserve for
Add: New Discount on Debtors − Discount on Creditor − 400
Add: New Reserve for Discount
on Debtors 1,672
Less: Old Reserve for Discount
on Debtors − 6,672
To Provident Fund Contribution A/c 5,000
To Salary & Wages A/c 25,000
Less: Drawings 2,000 23,000
To Commission to Kale A/c 10,000
To Depreciation A/c
Furniture (20%) 16,500
Premises (10%) 16,000 32,500
To Net Profit c/d
Gore 91,375
Kale 79,953 1,71,328
2,60,400 2,60,400
Partner’s Current Account
Dr. Cr.
Gore Kale Gore Kale
Particulars Particulars
` ` ` `
To Balance b/d 6,000 − By Balance b/d − 10,000
To Drawings A/c 5,000 10,000 By Commission A/c − 10,000
To Drawings A/c − 2,000 By Profit & Loss A/c 91,375 79,953
To Balance c/d 80,375 87,953
91,375 99,953 91,375 99,953
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c Debtors 75,000
Gore 80,000 Add: Unrecorded Sales 15,000
Kale 70,000 1,50,000 90,000
Current A/c Less: Bad debts 2,000
Gore 80,375 88,000
Kale 87,953 1,68,328 Less: R.D.D. (5%) 4,400
Sundry Creditors 20,000 83,600
Less: Reserve for discount Less: Reserve for discount
on Creditors (2%) 400 19,600 on Debtors (2%) 1,672 81,928

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts

Provident Fund 65,000 Furniture 82,500

Interest on Provident Fund Less: Depreciation (20%) 16,500 66,000
Investment 3,000 Premises 1,60,000
Outstanding Salary & Wages 9,000 Less: Depreciation (10%) 16,000 1,44,000
General Reserves 66,000 Provident fund Investment 71,000
Cash in hand 28,000
Closing Stock 90,000
4,80,928 4,80,928

Solution to Practice Q.20.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 80,000 By Sales A/c 7,68,000
To Purchases A/c 4,00,000 Less: Return Inward 30,000 7,38,000
To Carriage A/c 7,500 By Goods withdrawn by
To Power & Fuel A/c 40,000 Ganga A/c 10,000
To Wages A/c 35,000 By Closing Stock A/c 1,00,000
To Gross Profit c/d 2,85,500
8,48,000 8,48,000

Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 2,85,500
Doubtful Debts A/c By Commission A/c 12,000
Old Bad Debts −
Add: New Bad Debts 10,000
Add: New R.D.D. 3,500
Less: Old R.D.D. – 13,500
To Trade Expenses A/c 8,000
To Salaries A/c 72,000
To Insurance A/c 6,000
Less: Prepaid 1,500 4,500
To Postage A/c 3,000
To Commission A/c 8,000
To Advertisement A/c 15,000
To Interest on Loan A/c 9,000
To Depreciation A/c
Plant & Machinery (20%) 40,000
Building (10%) 40,000 80,000
To Net Profit c/d
Ganga’s A/c 42,250
Godawari’s A/c 42,250 84,500

2,97,500 2,97,500

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account
Dr. Cr.
Ganga Godawari Ganga Godawari
Particulars Particulars
` ` ` `
To Drawings A/c 8,000 10,000 By Balance b/d 2,50,000 2,50,000
To Drawings A/c (goods) 10,000 − By Profit & Loss A/c 42,250 42,250
To Balance c/d 2,74,250 2,82,250
2,92,250 2,92,250 2,92,250 2,92,250
Balance Sheet as on 31st Mar, 2007
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Plant & Machinery 2,00,000
Ganga 2,74,250 Less: Depreciation (20%) 40,000 1,60,000
Godawari 2,82,250 5,56,500 Furniture 80,000
Creditors 60,000 Building 4,00,000
12% Bank Loan 1,50,000 Less: Depreciation (10%) 40,000 3,60,000
Add: Interest Payable 9,000 1,59,000 Debtors 80,000
Less: Bad Debts 10,000
70,000
Less: R.D.D. (5%) 3,500 66,500
Cash in Hand 7,500
Closing Stock 1,00,000
Prepaid Insurance 1,500
7,75,500 7,75,500

Solution to Practice Q.21.: In the books of firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 22,000 By Sales A/c 2,87,500
To Purchases A/c 1,62,350 By Goods Taken by Sachin A/c 3,000
To Wages A/c 4,500 By Closing Stock A/c 37,500
To Gross Profit c/d 1,39,150
3,28,000 3,28,000
st
Profit and Loss Account for the year ended 31 Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries A/c 11,200 By Gross Profit c/d 1,39,150
To Professional Charges A/c 7,300 By Commission A/c 4,200
To Printing & Stationery A/c 1,850 Less: Loan Taken 2,000 2,200
To Insurance A/c 3,400 By Interest on Drawings A/c
To Interest A/c 6,300 Sachin 250
To P.F. Contribution A/c 1,000 Shrimant 180 430
To Interest on Capital A/c
Sachin 4,000
Shrimant 2,000 6,000
To Advertisement A/c 3,600
Less: Prepaid 3,150 450

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
To Net Profit c/d
Sachin 78,210
Shrimant 26,070 1,04,280
1,41,780 1,41,780
Partner’s Capital Account
Dr. Cr.
Sachin Shrimant Sachin Shrimant
Particulars Particulars
` ` ` `
To Drawings A/c 2,500 1,800 By Balance b/d 40,000 20,000
To Drawings A/c [goods] 3,000 – By Interest on Capital A/c 4,000 2,000
To Interest on Drawings A/c 250 180 By Profit & Loss A/c 78,210 26,070
To Balance c/d 1,16,460 46,090
1,22,210 48,070 1,22,210 48,070
st
Balance Sheet as on 31 Mar, 2007
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c Prepaid Insurance 400
Sachin 1,16,460 Debtors 48,200
Shrimant 46,090 1,62,550 Cash at Bank 1,01,300
Bills Payable 3,000 P.F. Investment 12,000
Creditors 21,500 Prepaid Advertisement 3,150
Outstanding Salaries 300 Closing Stock 37,500
Provident Fund 12,000
Interest On P.F. Investment 1,200
Mr. Patil’s Loan 2,000
2,02,550 2,02,550

Solution to Practice Q.22.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 2,00,000 By Sales A/c 3,54,000
To Purchases A/c 1,37,500 By Goods Distributed as Free
Add: Unrecorded Purchase 2,500 Sample A/c 5,000
1,40,000 By Closing Stock A/c 55,000
Less: Return Outward 2,000 1,38,000
To Railway Freight A/c 7,000
To Gross Profit c/d 69,000
4,14,000 4,14,000
st
Profit and Loss Account for the year ended 31 Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Depreciation A/c By Gross Profit b/d 69,000
Building (20%) 20,000 By Commission Received A/c 2,000
Furniture (10%) 1,000
Plant & Machinery (15%) 3,000 24,000
To Salaries A/c 20,000
Add: Outstanding 1,000 21,000
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To Advertisements A/c 5,000

(Free Samples)
To Rent A/c 7,800
Less: Prepaid Rent 600 7,200
To Bad Debts A/c 400

To Net Profit c/d

A 8,040
B 5,360 13,400

71,000 71,000

Partner’s Capital Account

Dr. Cr.
A B A B
Particulars Particulars
` ` ` `
To Drawings A/c 2,300 3,000 By Balance b/d 60,000 60,000
By Profit & Loss A/c 8,040 5,360
To Balance c/d 65,740 62,360

68,040 65,360 68,040 65,360

Balance Sheet as on 31st Mar, 2012

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Building 1,00,000
A 65,740 Less: Depreciation (20%) 20,000 80,000
B 62,360 1,28,100 Furniture 10,000
Creditors 32,000 Less: Depreciation (10%) 1,000 9,000
Add: Unrecorded Purchase 2,500 34,500 Plant and Machinery 20,000
Outstanding Salaries 1,000 Less: Depreciation (15%) 3,000 17,000
Closing Stock 55,000
Bills Receivable 2,000
Prepaid Rent 600

1,63,600 1,63,600

Solution to Practice Q.23.: In the books Firm

Trading Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 17,500 By Sales A/c 1,65,000
To Purchase A/c 1,12,600 By Goods Withdrawn by Jagan
To Productive Expense A/c 7,000 A/c 600
To Work Manager Salary A/c 3,000 By Goods destroyed by Fire
A/c 5,000
To Gross Profit c/d 50,500 By Closing Stock A/c 20,000

1,90,600 1,90,600

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Profit and Loss Account for the year ended 31st Mar, 2007
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 50,500
Doubtful Debts A/c By Commissions A/c 2,400
Old Bad Debts 500 By Interest on Investment A/c 3,600
Add: New Bad Debts 225
Add: New R.D.D. –
Less: Old R.D.D. – 725
To Depreciation A/c
Land and Building (7.5%) 1,875
To Salaries and Wages A/c 4,600
Add: Outstanding 400 5,000
To Office Expenses A/c 4,300
To Legal Expenses A/c 1,500
To Commissions A/c 1,500
To Loss by Fire A/c 5,000
To Net Profit c/d
Jagan 21,960
Magan 14,640 36,600

56,500 56,500

Partner’s Capital Account

Dr. Cr.
Jagan Magan Jagan Magan
Particulars Particulars
` ` ` `
To Drawings A/c 600 – By Balance b/d 30,000 20,000
By Profit & Loss A/c 21,960 14,640
To Balance c/d 51,360 34,640
51,960 34,640 51,960 34,640

Balance Sheet as on 31st Mar, 2007

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Cash in Hand 5,000
Jagan 51,360 Bills Receivable 4,000
Magan 34,640 86,000 Debtors 20,000
Creditors 10,000 Less: New Bad Debts 225 19,775
Bank Overdraft 5,000 Patents 4,000
Outstanding Salaries and Loose Tools 3,000
Wages 400 Furniture 6,000
Goodwill 6,500
Land and Building 25,000
Less: Depreciation (7.5%) 1,875 23,125
Investment 10,000
Closing Stock 20,000
1,01,400 1,01,400
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Solution to Practice Q.24.: In the books of firm
Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 42,000 By Sales A/c 2,20,000
To Purchases A/c 1,02,000 By Goods stolen A/c 6,000
To Wages A/c 4,000 By Closing Stock A/c 30,000
Less: Advance to worker 1,250 2,750
To Motive Power A/c 7,500
Less: Deposit for Power Meter 2,500 5,000
To Trade Expenses A/c 1,000
Less: Carriage Paid for new
Machinery 500 500
To Gross Profit c/d 1,03,750
2,56,000 2,56,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries A/c 7,000 By Gross Profit b/d 1,03,750
To Audit Fees A/c 9,900 By Interest on Investments A/c 600
To Stationery A/c 3,200 Add: Interest Receivable 150 750
Less: Unused Stationery 800 2,400
To Interest A/c 2,500
To General Expenses A/c 2,500
To Depreciation on Motor
Van A/c (10%) 4,400
To Loss by theft A/c 6,000
To Net Profit c/d
Ramu 41,880
Shamu 27,920 69,800
1,04,500 1,04,500
Partner’s Current Account
Dr. Cr.
Ramu Shamu Ramu Shamu
Particulars Particulars
` ` ` `
To Drawings A/c 6,000 4,000 By Balance b/d 8,000 5,500
By Profit & Loss A/c 41,880 27,920
To Balance c/d 43,880 29,420
49,880 33,420 49,880 33,420
st
Balance Sheet as on 31 Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c 5% Investments 30,000
Ramu 80,000 Add: Interest Receivable 150 30,150
Shamu 55,000 1,35,000 Loose Tools 8,500
Current A/c Motor Van 44,000
Ramu 43,880 Less: Depreciation (10%) 4,400 39,600
Shamu 29,420 73,300 Building 75,000
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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts

Sundry Creditors 50,000 Debtors 48,000

Loan from Ramu 30,000 Machinery 30,000
Add: Carriage paid for new
machinery 500 30,500
Cash at Bank 22,000
Deposit for Power Meter 2,500
Stock of Stationery 800
Advance to workers 1,250
Closing Stock 30,000
2,88,300 2,88,300

Solution to Practice Q.25.: In the books of firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 35,000 By Sales A/c 2,60,000
To Purchases A/c 1,65,000 Less: Sale of Furniture 2,000 2,58,000
Less: Returns 3,000 1,62,000 By Goods distributed as free
To Wages A/c 28,000 Samples A/c 400
By Goods destroyed by fire
A/c 1,000
To Gross Profit c/d 52,400 By Closing Stock A/c 9,000
2,77,400 2,77,400

Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 52,400
Doubtful Debts A/c By R.D.D. A/c 1,800
Old Bad Debts 1,000 By Interest on Investment A/c 700
Add: New Bad Debts − Add: Interest Receivable 300 1,000
Add: New R.D.D. – By Profit on Sale of Furniture
Less: Old R.D.D. 2,800 − A/c 100
To Salaries A/c 18,000
To Insurance A/c 3,500
To Rent & Taxes A/c 2,000
To Advertisement A/c 400
To Loss by fire A/c 2,000
To Depreciation on Building
A/c (10%) 4,400
To Commission to Manager A/c 5,000
To Net Profit c/d
Arun 10,000
Varun 6,000
Tarun 4,000 20,000

55,300 55,300

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Partner’s Capital Account
Dr. Cr.
Arun Varun Tarun Arun Varun Tarun
Particulars Particulars
` ` ` ` ` `
By Balance b/d 50,000 30,000 20,000
To Balance c/d 60,000 36,000 24,000 By Profit & Loss A/c 10,000 6,000 4,000
60,000 36,000 24,000 60,000 36,000 24,000
st
Balance Sheet as on 31 Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c Debtors 60,000
Arun 60,000 Less: Bad debts 1,000 59,000
Varun 36,000 Furniture 17,000
Tarun 24,000 1,20,000 Less: Furniture sold 1,900 15,100
Creditors 35,000 Buildings 44,000
Add: Bill Dishonoured 3,000 38,000 Less: Depreciation (10%) 4,400 39,600
Bills Payable 14,000 10% Investment 10,000
Less: Bill Dishonoured 3,000 11,000 Add: Interest Receivable 300 10,300
Commission Payable to Cash in hand 17,000
Manager 5,000 Bills Receivable 16,000
Closing Stock 9,000
Insurance Claim 8,000
1,74,000 1,74,000
[Note: The old reserve for doubtful debts (R.D.D.) as per Trial Balance = ` 2,800 is higher than the actual
expense for the year. Therefore, the excess amount of R.D.D. will be shown on the credit side of the Profit & Loss
Account.]

Solution to Practice Q.26.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 1,00,000 By Sales A/c 2,00,000
To Purchases A/c 1,37,500 Less: Return Inwards 2,500
Less: Return Outward 2,250 1,35,250 1,97,500
To Wages A/c 9,500 Less: Sale of Machinery 3,600 1,93,900
By Goods Lost by Theft A/c 5,000
By Closing Stock A/c 20,000
By Gross Loss A/c 25,850
2,44,750 2,44,750
st
Profit and Loss Account for the year ended 31 Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Gross Loss b/d 25,850
To Salaries A/c 6,000
To Printing and Stationery A/c 2,000
To Loss by Theft A/c 5,000 By Net Loss c/d
To Loss on Sale of Machinery Dhrashti 19,625
A/c 400 Srushti 19,625 39,250
39,250 39,250

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Partner’s Capital Account
Dr. Cr.
Dhrashti Srushti Dhrashti Srushti
Particulars Particulars
` ` ` `
To Drawings A/c 7,225 5,000 By Balance b/d 90,000 75,000
To Profit & Loss A/c 19,625 19,625
To Balance c/d 63,150 50,375
90,000 75,000 90,000 75,000
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Loose Tools 12,500
Dhrashti 63,150 Patents 12,500
Srushti 50,375 1,13,525 Machinery 50,000
Bills Payable 30,500 Less: Sale 4,000 46,000
Less: Dishonoured 2,000 28,500 Bills Receivable 12,500
Sundry Creditors 58,250 Less: Dishonoured 3,000 9,500
Add: Bills Payable Sundry Debtors 60,000
Dishonoured 2,000 60,250 Add: Bills Receivable
dishonoured 3,000 63,000
Cash in Hand and Bank 38,775
Closing Stock 20,000
2,02,275 2,02,275

Solution to Practice Q.27.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 40,100 By Sales A/c 3,10,700
To Purchases A/c 2,60,600 Less: Sales Return 1,000
Less: Purchase Return 6,400 2,54,200 3,09,700
To Wages A/c 22,000 Add: Unrecorded Sales 20,000 3,29,700
Less: Installation Charges 2,000 20,000 By Closing Stock A/c 50,000
To Royalties A/c 2,000 By Goods given as Charity A/c 5,000
To Gross Profit c/d 68,400
3,84,700 3,84,700
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries A/c 2,000 By Gross Profit b/d 68,400
Add: Outstanding 1,800 3,800 By Commission A/c 600
To Donations A/c 5,000
To Traveling Expenses A/c 2,000
To Telephone Expense A/c 600
To Professional Fees A/c 1,400
To Outstanding Expense A/c
Printing & Stationery 500
Electricity Expenses 1,700 2,200

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To Net Profit c/d
Motilal 27,000
Maniklal 27,000 54,000
69,000 69,000
Partner’s Capital Account
Dr. Cr.
Motilal Maniklal Motilal Maniklal
Particulars Particulars
` ` ` `
By Balance b/d 24,000 14,000
To Balance c/d 51,000 41,000 By Profit and Loss A/c 27,000 27,000
51,000 41,000 51,000 41,000
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
To Capital Machinery 30,000
Motilal 51,000 Add: Installation Charges 2,000 32,000
Maniklal 41,000 92,000 Debtors 40,000
Bills Payable 12,000 Add: Unrecorded Sales 20,000 60,000
Creditors 40,000 Cash 6,000
Outstanding Expenses Closing Stock 50,000
Salaries 1,800
Printing and Stationery 500
Electricity Expenses 1,700 4,000
1,48,000 1,48,000

Solution to Practice Q.28.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 90,000 By Sales A/c 6,12,000
To Purchases A/c 4,50,000 By Goods destroyed by Fire
Less: Machinery Wrongly A/c 15,000
Included 30,000 4,20,000 By Closing Stock A/c 20,000
To Trade Charges A/c 12,000
To Carriage Inward A/c 5,000
To Coal, Gas and Water A/c 1,500
To Factory Rent A/c 2,000
To Gross Profit c/d 1,16,500
6,47,000 6,47,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Loss by Fire A/c 5,000 By Gross Profit b/d 1,16,500
To Interest on Capital A/c By Commission Receivable A/c 500
Raj 8,700
Ranbir 7,800 16,500
To Carriage Outward A/c 3,000
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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
To General Expense A/c 5,500
To Unproductive Wages A/c 22,000
To Advertisement A/c 12,000
Less: Prepaid 8,000 4,000
To Discount A/c 3,000
To Outstanding Interest on
Loan from Raj A/c 1,200
To Net Profit c/d
Raj 28,400
Ranbir 28,400 56,800
1,17,000 1,17,000
Partner’s Current Account
Dr. Cr.
Raj Ranbir Raj Ranbir
Particulars Particulars
` ` ` `
By Balance b/d 1,45,000 1,30,000
By Interest on Capital A/c 8,700 7,800
To Balance c/d 1,82,100 1,66,200 By Profit and Loss A/c 28,400 28,400
1,82,100 1,66,200 1,82,100 1,66,200
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital Goodwill 20,000
Raj 1,82,100 Land & Building 77,000
Ranbir 1,66,200 3,48,300 Plant & Machinary 1,50,000
Loan from Raj 20,000 Add: Wrongly Included in
Add: Outstanding Interest 6% 1,200 21,200 Purchase 30,000 1,80,000
Closing Stock 20,000
Debtors 40,000
Commission Receivable 500
Insurance Claim 10,000
Cash in Hand 2,000
Cash at Bank 12,000
Prepaid Advertisement 8,000
3,69,500 3,69,500

Solution to Practice Q.29.: In the books of firm

Trading Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 83,000 By Sales A/c 4,20,000
To Purchases A/c 1,97,000 By Closing Stock A/c 76,000
To Wages A/c 7,500
Less: Advance 2,500 5,000
To Motive Power A/c 15,000
Less: Deposit 7,000 8,000
To Carriage A/c 7,000
To Gross Profit c/d 1,96,000
4,96,000 4,96,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Profit and Loss Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries A/c 13,000 By Gross Profit b/d 1,96,000
Add: Outstanding 3,000 16,000 By Interest on Drawings A/c
To Audit Fees A/c 8,500 Anand 180
Add: Outstanding 3,500 12,000 Pramod 120 300
To Bad Debts A/c 6,400
To Interest A/c 4,000
To Interest on Capital A/c
Anand 8,100
Pramod 5,400 13,500
To Depreciation A/c
Loose Tools (10%) 1,700
Motor Van (7.5%) 6,600
Machinery (12.5%) 7,500 15,800
To Net Profit c/d
Anand’s A/c 77,160
Pramod’s A/c 51,440 1,28,600
1,96,300 1,96,300

Partner’s Current Account

Dr. Cr.
Anand Pramod Anand Pramod
Particulars Particulars
` ` ` `
To Drawings A/c 12,000 8,000 By Balance b/d 16,200 10,800
To Interest of Drawings A/c 180 120 By Interest on Capital A/c 8,100 5,400
By Profit and Loss A/c 77,160 51,440
To Balance c/d 89,280 59,520
1,01,460 67,640 1,01,460 67,640

Balance Sheet as on 31st Mar, 2010

Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c: Investments 56,000
Anand 1,62,000 Loose Tools 17,000
Pramod 1,08,000 2,70,000 Less: Depreciation (10%) 1,700 15,300
Sundry Creditors 99,000 Motor Van 88,000
Bank Overdraft 56,400 Less: Depreciation (7.5%) 6,600 81,400
Outstanding Salaries 3,000 Building 1,50,000
Outstanding Audit Fees 3,500 Debtors 96,000
Current A/c: Cash at Bank 44,000
Anand 89,280 Machinery 60,000
Pramod 59,520 1,48,800 Less: Depreciation (12.5%) 7,500 52,500
Closing Stock 76,000
Deposit for Meter 7,000
Advance Wages 2,500
5,80,700 5,80,700

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Solution to Practice Q.30.: In the books of firm
Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 40,500 By Sales A/c 3,00,000
To Purchase A/c 1,80,000 Add: Unrecorded Sales 3,000 3,03,000
Add: Unrecorded Purchases 5,000 1,85,000 By Closing Stock A/c 41,000
To Wages & Salaries A/c 19,500
Less: Wages paid for making
Furniture 5,000 14,500
To Works Manager’s salary
A/c 3,600
To Gross Profit c/d 1,00,400
3,44,000 3,44,000
Profit and Loss Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Expense A/c 3,800 By Gross Profit b/d 1,00,400
To Rent A/c 22,000 By Commission A/c 12,500
Add: Outstanding 2,000 24,000 By Interest Receivable on
To Printing & Stationery A/c 1,700 Debenture A/c 1,000
To Insurance A/c 2,000 By Interest on Drawings A/c
Less: Prepaid 500 1,500 Samir 450
To Provident Fund Karan 250 700
Contribution A/c 1,250
To Advertisement A/c 4,800
Less: Prepaid 3,200 1,600
To Bad debts A/c 2,500
To Interest on Capital A/c
Samir 12,000
Karan 10,200 22,200
To Salary to Samir A/c 6,000
To Commission to Karan A/c 1,004
To Net Profit c/d
Samir 24,523
Karan 24,523 49,046
1,14,600 1,14,600
Partner’s Current Account
Dr. Cr.
Anand Pramod Anand Pramod
Particulars Particulars
` ` ` `
To Drawings A/c 18,000 10,000 By Balance b/d 2,00,000 1,70,000
To Interest of Drawings A/c 450 250 By Interest on Capital A/c 12,000 10,200
By Profit and Loss A/c 24,523 24,523
By Salary A/c 6,000 –
To Balance c/d 2,24,073 1,95,477 By Commission A/c – 1,004
2,42,523 2,05,727 2,42,523 2,05,727

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Balance Sheet as on 31st Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital A/c: Debtors 88,000
Samir 2,24,073 Add: Unrecorded Sales 3,000 91,000
Varun 1,95,477 4,19,550 Furniture 80,000
Creditors 87,000 Add: Wages paid for making
Add: Unrecorded Purchases 5,000 92,000 new Furniture 5,000 85,000
Outstanding Rent 2,000 Land & Building 2,50,000
Provident Fund 35,000 10% Debenture 40,000
Interest on Provident Fund Add: Interest Receivable 1,000 41,000
Investment 2,500 Prepaid Insurance 500
Prepaid Advertisement 3,200
Provident Fund Investment 38,000
Cash in hand 1,350
Closing Stock 41,000
5,51,050 5,51,050

Solution to Practice Q.31.: In the books of firm

Trading Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 12,000 By Sales A/c 1,10,000
To Purchases A/c 98,500 Less: Return Inwards 2,000 1,08,000
To Import Duty A/c 2,100 By Goods stolen from Godown
A/c 8,000
To Gross Profit c/d 28,400 By Closing Stock A/c 25,000
1,41,000 1,41,000

Profit and Loss Account for the year ended 31st Mar, 2010
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Salaries and Wages A/c 26,000 By Gross Profit b/d 28,400
To Carriage Outward A/c 1,800 By Dividend Received A/c 1,500
To Insurance Premium A/c 2,200
To Postage and Telegram A/c 1,750
Less: Unused Postage Stamps 250 1,500
To Advertisements A/c 3,000
To Bad Debts A/c 1,000
Add: New Bad Debts 2,000 3,000
To Printing and Stationery A/c 2,400
To Interest on Bank Loan A/c 3,000
To Loss by theft A/c 8,000
To Depreciation A/c By Net Loss c/d
Leashold Premises 4,000 Sanjay 16,000
Plant and Machinery (10%) 7,000 11,000 Vijay 16,000 32,000
61,900 61,900

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Target Publications Pvt. Ltd. Chapter 02: Partnership Final Accounts
Partner’s Capital Account
Dr. Cr.
Sanjay Vijay Sanjay Vijay
Particulars Particulars
` ` ` `
To Profit and Loss A/c 16,000 16,000 By Balance b/d 45,000 45,000
To Balance c/d 29,000 29,000
45,000 45,000 45,000 45,000
st
Balance Sheet as on 31 Mar, 2010
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capital : Leashold Premises 80,000
Sanjay 29,000 Less: Written off 4,000 76,000
Vijay 29,000 58,000 Plant and Machinery 70,000
Sundry Creditors 72,700 Less: Depreciation (10%) 7,000 63,000
Bills Payable 40,000 Sundry Debtors 45,800
Outstanding Audit Fees 4,400 Less: New Bad Debts 2,000 43,800
10% Bank Loan 60,000 Cash in Hand 1,850
Add: Outstanding Interest 3,000 63,000 Stock of Postage Stamps 250
Closing Stock 25,000
Bills Receivable 28,200
2,38,100 2,38,100

Solution to Practice Q.32.: In the Books of Firm

Trading Account for the year ended 31st Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Opening Stock A/c 35,000 By Sales A/c
To Purchases 2,20,000 Credit 4,00,000
Less: Purchase Returns 3,000 2,17,000 Cash 30,000
To Wages A/c 28,000 4,30,000
Less: Sales Returns 2,500 4,27,500
By Goods destroyed by Fire
A/c 5,000
By Goods withdrawn by a
A/c 10,000
By Goods distributed as Free
Samples A/c 5,000
To Gross Profit c/d 2,47,500 By Closing Stock A/c 80,000
5,27,500 5,27,500
st
Profit and Loss Account for the year ended 31 Mar, 2012
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Reserve for Bad & By Gross Profit b/d 2,47,500
Doubtful Debts A/c By Discount A/c 3,500
Old Bad Debts 3,400
Add: New Bad Debts 5,000
Add: New R.D.D. 2,000
Less: Old R.D.D. – 10,400

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
To Sundry Expenses A/c 1,500
To Salaries A/c 46,000
To Travelling Expenses A/c 6,000
To Advertisement A/c 10,000
Less Prepaid 8,750
1,250
Add: Goods distributed as
Free Samples 5,000 6,250
To Rates and Insurance A/c 13,800
To Discount A/c 4,000
To Interest on Bank Loan 3,300
Add: Outstanding 3,400 6,700
To Depreciation A/c
Buildings (10%) 18,000
Machinery (15%) 15,000
Furniture 20,000 53,000
To Interest on Loan from A A/c 2,500
To Loss by Fire A/c 5,000
To Net Profit c/d
A 54,771
B 41,079 95,850
2,51,000 2,51,000
Partner’s Capital Account
Dr. Cr.
A B A B
Particulars Particulars
` ` ` `
To Drawings A/c 10,000 10,000 By Balance b/d 1,20,000 90,000
By Goods withdrawn A/c 10,000 – By Profit & Loss A/c 54,771 41,079
To Balance c/d 1,54,771 1,21,079
1,74,771 1,31,079 1,74,771 1,31,079
st
Balance Sheet as on 31 Mar, 2012
Amount Amount Amount Amount
Liabilities Assets
` ` ` `
Capitals Buildings 1,80,000
A 1,54,771 Less: Depreciation (10%) 18,000 1,62,000
B 1,21,079 2,75,850 Machinery 1,00,000
Sundry Creditors 35,000 Less: Depreciation (15%) 15,000 85,000
Bills Payable 45,000 Furniture 60,000
10% Loan from A 50,000 Less: Depreciation 20,000 40,000
Add: Interest Payable 2,500 52,500 Debtors 45,000
10% Bank Loan 67,000 Less: Bad Debts 5,000
Add: Outstanding Interest 3,400 70,400 40,000
Less: R.D.D. (0.5% of Gross
Credit Sales) 2,000 38,000
Bills Receivable 50,000
Closing Stock 80,000
Prepaid Rent
Prepaid Advertisement 8,750
Cash in Hand 15,000
4,78,750 4,78,750

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