Kshipra and Manisha are Partners sharing Profit and losses in their Capital Ratio. You are required to prepare Trading Account and Profit and loss Account for the year ended 31st March, 2019 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2019

Debit Balance	Amount	Credit Balance	Amount
Sundry Debtors	28,000	Sales	1,20,000
Purchases	55,000	Rent	1,800
Furniture	38,500	Sundry Creditors	38,500
Plant & machinery	60,000	Purchase Return	1,000
Wages	800	Discount	500
Salaries	3,500	Bills Payable	9,000
Discount	800	Capital A/c:
Bills Receivable	14,4000	Kshipra	90,000
Carriage Outward	1,000	Manisha	30,000
Postage	500	Current A/c:
Sales Return	500	Kshipra	5,000
Cash in Hand	4,000	Manisha	3,000
Cash at Bank	47,000
Insurance	2,000
Opening Stock	17,800
Trade Expenses	1,500
Ware house Rent	2,500
Advertisement	1,000
Building	20,000
	2,98,800		2,98,800

Adjustments:

1. Stock on 31st March 2019 was at 37,000.

2. Sales includes, Sales of machinery of2,000, which is sold on 1st April 2018.

3. Depreciation on fixed assets @5%.

4. Each Partners is entitled to get Commission at 1% of gross Profit and Interest on capital 5% p.a.

5. Outstanding Expenses wages 200 & Salaries 500.

6. Create provision for doubtful debts @3% on sundry Debtors.

Solution:

Final Account

In the books of Kshipra and Manisha

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

Particulars	Amount	Amount	Particulars	Amount	Amount
To Opening Stock		17,800	By Sales	1,20,000
			(-) Sale of Machinery	(2,000)
To Purchases	55,000			1,18,000
(-) Purchase Return	(1,000)	54,000	(-) Sales Return	(500)	1,17,500
To Wages	800		By Closing Stock		37,000
(+) Outstanding wages	200	1,000
To Gross Profit		81,700
		1,54,500			1,54,500

To R.D.D.		840	By Gross Profit		81,700
To Salaries	3,500
(+) Outstanding Salaries	500	4,000
To Discount		800	By Rent		1,800
To Carriage outward		1,000	By Discount		500
To Postage		500
To Insurance		2,000
To Trade expense		1,500
To Ware house Rent		2,500
To Advertisement		1,000
To Depreciation on
Furniture	1,925
Plant & machinery	2,900
Building	1,000	5,825
To Interest on Capital
Kshipra	4,500
Manisha	1,500	6,000
To Commission on Gross Profit
Kshipra
Manisha	817
	817	1,634
To Net Profit
Kshipra	42,300.74
Manisha	14,100.24	56,401
		84,000			84,000

Partner`s Current Account

Particulars	Kshipra	Manisha	Particulars	Kshipra	Manisha
			By Balance c/d	5,000	3,000
			By Interest on Capital	4,500	1,500
To Balance b/d	52617.74	19,417.24	By Commission	817	817
			By Net Profit	42300.74	14,100.24
	52617.74	19,417.24		52617.74	19,417.24

Balance Sheet as on 31st March, 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c			Furniture	38,500
Kshipra	90,000		(-) Depreciation	(1,925)	36,575
Manisha	30,000		Plant & machinery	60,000
(+) Current A/c:	(+)		(-) Sale of machinery	(2,000)
Kshipra	52617.74			58,000
Manisha	19417.24	1,92,035	(-) Depreciation	(2,900)	55,100
			Bills Receivable		4,400
			Cash in hand		4,000
Creditors		38,500	Cash at Bank		47,000
Bills Payable		9,000	Building	20,000
			(-) Depreciation	(1,000)	19,000
Outstanding Wages & Salaries	200
	500	700
			Debtors	28,000	.
			(-) R.D.D.	(840)	27,160
			Closing Stock		37,000
		2,40,235			2,40,235