Page 44 - VIRANSH COACHING CLASSES

Adjustments :
(1) Stock on hand on 31 March 2019 was valued at ` 38000.
(2) Ram is allowed a Salary of ` 6000 and Krushna is allowed Commission at 3% on net sales.
(3) Interest on Partner's Capital is to be provided @ 5% p.a.
(4) Provide depreciation on Plant and Machinery 5%.
(5) ` 3000 from our customer is not recoverable.
(6) Prepaid Insurance ` 500.
Trading and Profit and Loss Account for the year ended 31st March 2019
Dr. Cr.
Particulars Amount Amount Particulars Amount Amount
` ` ` `
To Opening Stock 36,000 By Sales 2,08,000
To Purchases 1,00,000 By Closing Stock 38000
To Wages 1760
To Gross Profit c/d 1,08,240
2,46,000 2,46,000

To Commission 2,800 By Gross Profit b/d 1,08,240

To Salaries 3,000 By Interest on Govt 450
To Insurance 2,500 Bonds Receivable
Less : Prepaid 500 2,000
To Ram's Salary 6,000
To Commission to Krushna 6,240
To Depreciation on :

Plant and Machinery 3,150
To Bad debts (Old) 500
To R.D.D. (New) 3,000
3,500
Less : R.D.D. (Old) 1,000 2,500
To Interest on Capital
(Pratners Current A/C)
Ram 8,000

Krushna 4,000 12,000
Net Profit (Transfered
Partners to Current Account)
Ram 35,500
Krushna 35,500 71,000
1,08,690 1,08,690

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