[CBSE] Q. 1 Solution Fundamentals of Partnership Firms DK Goel [2023-24]

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Solution of Question Number 1 of the Fundamentals of partnership firm chapter DK Goyal Book 2023-24

X and Y are partners sharing profits in the ratio of 2 : 1. The undermentioned trial balance was extracted from their books as at 31st March, 2023:

ParticularsDr.Cr.
X’s Capital
Y’s Capital
X’s Drawings
Y’s Drawings
Stock (1st April, 2022)
Purchases and Sales
Debtors and Creditors
Buildings
Cash in Hand
Bank Overdraft
Salaries to Staff
Rent
Advertising Expenditure
Travelling Expenses
40,000
32,000
45,200
8,68,000
1,52,000
6,00,000
5,900
74,700
26,400
5,000
31,300
3,20,000
2,40,000
12,45,000
48,000
27,500
18,80,50018,80,500

You are required to prepare the Profit and Loss Account and Profit and Loss Appropriation Account for the year ended 31st March, 2023 and a Balance Sheet as on that date. The following adjustments are to be made:

(i) The value of stock on March 31, 2023 was ₹ 64,000.

(ii) Charge depreciation on Buildings at 10%.

(iii) Provide for outstanding rent ₹ 2,400.

(iv) Partners are entitled to interest on Capital @ 5% and X is entitled to a salary of ₹ 48,000 p.a.

[Ans. Gross Profit ₹ 3,95,800; Net Profit as per Profit & Loss A/c ₹ 1,96,000; Profit transferred to Capital Accounts as per Profit & Loss Appropriation A/c ₹ 1,20,000; Capitals X ₹ 4,24,000 and Y ₹ 2,60,000; Total of Balance Sheet ₹ 7,61,900.]

Solution:-

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