Page 45 - VIRANSH COACHING CLASSES

Balance Sheet as on 31 March, 2019
st
Liabilities Amount Amount Assets Amount Amount
` ` ` `
Capital : Sundry Debtors 1,73,500
Ram 1,60,000 Less-Bad debts 3,000 1,70,500
Krushna 80,000 2,40,000 Bills Receivable 47,000
Current A/c : Plant and Machinery 63,000
Ram 57,500 Less : Depreciation 3,150 59,850
Krushna 41,740 99,240 Furniture 25,000
Creditors 41,800 Investment 10,500
Bills Payable 21,000 Loan and Advances 35,240
Closing Stock 38,000
Prepaid Insurance 500
12% Govt. Bonds 15,000
Add : Interest Receivable 450 15,450
4,02,040 4,02,040

Dr. Partners Current Account Cr.
Particulars Ram Krushna Particulars Ram Krushna
Amt. ` Amt. ` Amt. ` Amt. `
To Balance b/d 4,000 By Balance b/d 8,000 -
-
By Profit and Loss A/c 6,000
(Ram's Salary)
By Profit and Loss A/c - 6,240

(Commision)
To Balance c/d 57,500 41,740 By Profit and Loss A/c 8,000 4,000
(Interest on capital)
By Profit and Loss A/c 35,500 35,000
57,500 45,740 57,500 45,740
By Balance b/d 57,500 41,740
Working Notes :
(1) In this problem Current Account is given. So total Amount of fixed capital of Ram (`1,60,000)
and Krishna (` 80,000) = ` 2,40,000 should be directly shown on the liability side of Balance
Sheet. Effect of adjustment related with capital. i.e. 5% interest on capital, 3% commission on
net sales, partners should be reflected on current account which is separately prepared. Closing
Balances of Current Account of partners will be shown on liability side of Balance sheet.
(2) Amount of Debtor ( 3000) which is not recoverable is to be treated as Bad debts (New) and it
should be deducted from debtors on Assets side of Balance Sheet.
(3) 12% Govt. Bonds - are purchased on 1.1.2019, So Interest receivable is only for 3 months (i.e.
1.1.2019 To 31.3.2019) @ 12% p.a. on 15000. Which is treated as income.
15,000 12 3
100 × 100 × 12 = ` 1,800
` 1,800 is for 12 months, we have to consider Interest for 3 months only.

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