Jayesh and Rupesh are partners sharing profits and losses in the ratio of 3 : 2.From the following Trial Balance and additional information, prepare Trading and Profit and Loss Account for the year ended on 31st March 2023 and Balance Sheet as on tha…
Q.7 Jayesh and Rupesh are partners sharing profits and losses in the ratio of 3 : 2.
From the following Trial Balance and additional information, prepare Trading and Profit and Loss Account for the year ended on 31st March 2023 and Balance Sheet as on that date.
Trial Balance as on 31st March 2023
| Debit Balance | Amount (₹) | Credit Balance | Amount (₹) |
|---|---|---|---|
| Purchases | 1,63,000 | Sales | 2,20,000 |
| Debtors | 45,000 | Creditors | 47,000 |
| General Expenses | 8,000 | Return Outward | 3,000 |
| Stock (on 1-4-22) | 35,000 | Capital: | |
| Premises | 1,30,000 | Jayesh | 1,20,000 |
| Rent (for 10 months) | 20,000 | Rupesh | 80,000 |
| Productive wages | 5,000 | ||
| Furniture (Addition ₹ 20,000 made on 01-10-2022) | 40,000 | ||
| Cash at Bank | 24,000 | ||
| 4,70,000 | 4,70,000 |
Adjustments:
- Closing stock is valued at ₹ 38,000.
- Depreciate furniture by 10% p.a.
- Charge interest on capital at 5% p.a.
- Goods distributed as free sample ₹ 2,000.