From the following Trail Balance of M/s Meera and Madhav. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2019.

Trail Balance as on 31st March, 2019

Debit Balance	Amount ₹	Credit Balance	Amount ₹
Stock (1/4/2018)	25,000	Bank Overdraft	5,000
Debtors	80,500	Bills Payable	12,500
Bills Receivable	10,000	Creditors	68,000
Purchases	2,08,500	Sales	3,25,000
Return	1,000	Outstanding Rent	2,000
Carriage Inward	3,000	Unpaid Wages	1,500
Carriage Outward	4,500	Capital:
		Meera	75,000
		Madhav	75,000
Motor vehicle	55000	Purchase Return	1,000
General Expenses	1,800
Export Duty	900
Advertisement (For 3 years from 1/10/2018)	4,800
Printing & Stationary	1,200
Drawings:
Meera	3,500
Madhav	2,000
Leasehold Premises	1,10,000
Cash at Bank	45,000
Furniture	8,300
	5,65,000		5,65,000

Solution:

Final Account in the books of M/s Meera and Madhav  

Trading A/c And Profit & Loss A/c for the year ended 31st march, 2019

	Amount₹	Amount₹	Particulars	Amount₹	Amount₹
Particulars
To Opening Balance		25,000	By Sales	3,25,000
			(-) Returns	(1,000)	3,24,000
To Purchases	2,08,500
(-) Returns	(1,000)	2,07,500
To Carriage Inward		3,000	By closing Stock		32,000
To Gross Profit c/d		1,20,500
		3,56,000			3,56,000
To Export Duty		900	By Gross Profit b/d		1,20,500
To carriage outward		4,500
To General Expenses		1,800

To Advertisement	4,800
(-) Prepaid Advertisement	(4,000)	800
To Printing & Stationary	1,200
(+) outstanding Expenses
	(500)	1,700
To Depreciation on Leasehold Premises		10,000
To R.D.D.    (A)		2,000
To Discount on R.D.D.       (A)		2,355
To Net Proft c/d
Meera (½)	48,223
Madhav (½)	48,223	96,445
		1,20,500			1,20,500

Partner`s Capital A/c for the year ended 31st March, 2019

Particulars	Meera	Madhav	Particulars	Meera	Madhav
To Drawings	3,500	2,000	By Balance b/d	75,000	75,000
To Balance c/d	1,19,722.5	1,21,222.5	By Net Profit b/d	48,222.5	48222.5
	1,23,222.5	1,23,222.5		1,23,222.5	1,23,222.5

Balance Sheet as on 31st March, 2019

Liabilities	Amount₹	Amount₹	Assets	Amount₹	Amount₹
Capital A/c:			Bills Receivable		10,000
Meera	1,19,722.5		Motor vehicle		55,000
Madhav	1,21,222.5	2,40,945
			Leasehold Premises	1,10,000
			(-) Depreciation
				(10,000)	1,00,000
			Cash at Bank		45,000
			Furniture		8,300
			Debtors	80,500
			(-) R.D.D.     (A)	(2,000)
Bank Overdraft		5,000		78,500
			(-) Discount on R.D.D.         (A)	(2,355)	76,145
Bills Payable		12,500	Closing Stock		32,000
Creditors		68,000	Prepaid Advertisement		4,000
Outstanding Rent		2,000
Unpaid wages		1,500
Outstanding Printing & Expenses		500
		3,30,445			3,30,445