Ramdeo and Mahadeo are partners sharing profits and losses in the ratio of 2:1. From the
following Trial Balance and adjustments, prepare Trading and Profit and Loss Account for the year
ended 31st March, 2011 and Balance Sheet as on 31st March, 2011.
Trial Balance as on 31st March, 2011
Debit Balances Amount Rs. Credit Balances Amount Rs.
Opening stock 20,250 Sales 1,47,500
Furniture and fixture 15,000 Sundry Creditors 33,500
Cash in hand 1,802 Dividend received 4,000
Bad debts 1,250 Provident fund 17,500
Salaries and wages 9,750 Interest on P.F. Investment 1,250
Purchases 87,500 Capital A/c-
Sundry Debtors 41,500 Ramdeo 80,000
General expenses 1,900 Mahadeo 40,000
Land and Building 75,000
Carriage inward 1,748
Goodwill 30,000
Provident fund contribution 1,250
Advertisement (for 3 years)
W.e.f. 1st Oct, 2010
4,800
Provident fund Investment 19,000
Shares in B Ltd. 13,000
3,23,750 3,23,750
Adjustments:
1) Stock on hand on 31st March, 2011 was valued at Rs. 25,000.
2) Rs. 2,000 paid during the year as Building repairs wrongly debited to Building account.
3) Depreciate Land and Building at 10%p.a.
4) Maintain R.D.D. at 5% on Sundry Debtors.
5) Reserve for discount on Debtors and Creditors are to be made at 3% and 4% respectively.
6) Uninsured goods worth Rs. 2,000 were destroyed by fire.
