The following Trial Balance has been extracted from the books of a merchant.
|
Debit
|
Credit
|
|
Particulars
|
Dr. Rs
|
Cr.Rs
|
|
Drawings
|
17,500
|
-
|
|
Buildings
|
30,000
|
-
|
|
Debtors and Creditors
|
25,000
|
40,000
|
|
Purchases and Sales
|
1,50,000
|
2,32,500
|
|
Returns
|
1,750
|
1,450
|
|
Discount
|
3,550
|
2,550
|
|
Life Insurance
|
1,500
|
-
|
|
Cash
|
15,000
|
-
|
|
Stock (opening)
|
6,000
|
-
|
|
Bad Debts
|
2,500
|
-
|
|
Reserve for Bad Debts
|
-
|
8,500
|
|
Carriage Inwards
|
3,100
|
-
|
|
Wages
|
13,850
|
-
|
|
Machinery
|
4,00,000
|
-
|
|
Furniture
|
30,000
|
-
|
|
Salaries
|
17,500
|
-
|
|
Bank Commission
|
1,000
|
-
|
|
Bills Receivable/Bills Payable
|
30,000
|
20,000
|
|
Trade Expenses/Capital
|
6,750
|
4,50,000
|
|
7,55,000
|
7,55,000
|
Adjustments
- Allow interest on capital @ 5% p.a.
- Machinery includes Rs 1,00,000 of a machine purchased on Dec 31, 2008. Wages include Rs 2,850 spent on the installation of a machine.
- Trade expenses Rs 1,250 and wages Rs 1,750 have not been paid as yet.
- Depreciate building by 5%; furniture and machinery by 10% p.a.
- Make provision of doubtful debts at 5%.
- Stock on Mar 31, 2009 was valued at Rs 25,000.
You are required to prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet as on that date.