Answer:

Tambe and Pitale are partners SHARING profits and losses equally. From the following Trial BALANCE d adjustments, prepare Trading and PROFIT and Loss Account for the year ended 31st March, 2012 and

balance Sheet as on that date.

Debit Balances

Land And Building

Machinery (Addition on

1st July 2011 10,000)

Opening stock

Wages

Cash at Bank Sundry Debtors

Purchases

Carriage

Rent, RATES and Taxes

Furniture and fixture

Salaries

OFFICE expenses

Drawing A/c-

Tambe Pitale

Trial Balance as on 31" March, 2012

Amt. ₹

75,000 55,000

23,000

5,750

3,500 32,800

63,000

1,250

2,400 26,600

3,500

2,450

5,000 4,000

3,03,250

Credit Balances

Capital A/C

Sales

Sundry Creditors

10% Bank loan

(Taken on 1st Oct. 2011) Sundry Income

Pre-received rent

Provident Fund

Amt.

₹

70,000

50,000

85,000

44,250

20,000

1,500

2,500

30,000

Tambe

Pitale

3,03.250

justments:

Closing stock is valued at 20,000.

Goods worth 2,000 were purchased on 31st March, 2013 and included in closing stock recorded in the books of account.

Goods worth 2,500 were sold, but not recorded in the books of accounts.

Outstanding office expenses were 1,700.

Depreciate Machinery at 10%p.a. Write off 1,500 for Bad debts.