The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation Ac, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings Plant and Machinery 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount 212500 127500 Wages Opening Stock of Finished Goods Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors Carriage inwards Carriage outwards Factory Expenses Royalties Purchase of Raw material (net) 106250 1381250 10625 76500 Provision for bad debts 6375 212500| Commission 6375 Y's Loan A/c 42500 127500 3825 31875 6375 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses Salaries of works manager 31875 51000 Cash at bank 34850 2014500 2014S00 The following additional information is to be taken into consideration: Closing Stock: Finished Goods 212500 Raw Materials 127500 Work in Progress 106250 Outstanding Liabilities: Wages 21250 Office Salaries. 25S00 Office Rent 8500 Partnership Salary: 25500 12750 Insurance Premium paid in advance 2129 Provision for bad debts to be created @ 2.5% on debtors Depreciate Land and Buildings by 2.5% and Plant and Machinery by 5%. The loan account of Y was raised in the books before the beginning of the year.
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation Ac, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings Plant and Machinery 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount 212500 127500 Wages Opening Stock of Finished Goods Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors Carriage inwards Carriage outwards Factory Expenses Royalties Purchase of Raw material (net) 106250 1381250 10625 76500 Provision for bad debts 6375 212500| Commission 6375 Y's Loan A/c 42500 127500 3825 31875 6375 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses Salaries of works manager 31875 51000 Cash at bank 34850 2014500 2014S00 The following additional information is to be taken into consideration: Closing Stock: Finished Goods 212500 Raw Materials 127500 Work in Progress 106250 Outstanding Liabilities: Wages 21250 Office Salaries. 25S00 Office Rent 8500 Partnership Salary: 25500 12750 Insurance Premium paid in advance 2129 Provision for bad debts to be created @ 2.5% on debtors Depreciate Land and Buildings by 2.5% and Plant and Machinery by 5%. The loan account of Y was raised in the books before the beginning of the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:The following s the trail Balance of X and Y Co. as on March 31, 2021. The partners
sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss
Appropriation A/c, Partners' Capital A/c and the Balance Sheet.
Particulars
Dr.
Particulars
Cr.
Land and Buildings
637500 X Capital A/c
191250 Y Capital A/c
85000 Sundry creditors
170000 Sales (net)
85000 Discount
76500 Provision for bad debts
212500 Commission
6375 Y's Loan A/c
212500
Plant and Machinery
127500
Wages
Opening Stock of Finished Goods
Opening Stock of Raw material
Opening Stock of Work in Progress
Sundry debtors
Carriage inwards
Carriage outwards
Factory Expenses
Royalties
106250
1381250
10625
6375
42500
127500
3825
31875
6375
Purchase of Raw material (net)
318750
Factory rent & taxes
Discount
27625
0.
12325
17000
8500
0.
Office rent
Insurance
Bad debts
Office Expenses
Salaries of works manager
6375
31875
S1000
Cash at bank
34850
2014500
The following additional information is to be taken into consideration:
2014500
Closing Stock
Finished Goods
Raw Materials
Work in Progress
Outstanding Labilities:
Wages
office Salarie.
212500
127500
106250
21250
25500
8500
office Rent
Partnership Salary
10
25500
12750
Insurance Premium paid in advance
2125
Provision for bad debts to be created @ 2.5% on debtors
Depreciate Land and Buildings by 2.5% and Plant and Machinery by 5%.
The loan account of Y was raised in the books before the beginning of the year.
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