Prepare the trading and profit and loss account for the

Question

From the following Trial Balance of Mr. Kannan as on Mar 31, 2009 and additional information given, prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date:

Particulars	Debit Balance Rs	Credit Balance Rs
Opening Stock	12,500	-
Capital	-	1,12,500
Debtors and Creditors	15,000	8,750
Purchases and Sales	1,00,000	1,75,000
Returns	3,750	2,500
Carriage	2,000	-
Wages and Salaries	6,250	-
Commission	-	3,250
Machinery	20,000	-
Furniture	5,000	-
Bad Debts	2,000	-
Provision for Doubtful Debts	-	2,500
Bills Receivable/Bills Payable	7,500	1,750
Land and Buildings	1,00,000	-
Taxes and Insurance	4,250	-
Discount Allowed	3,000	-
Bank	12,500	-
Drawings	12,500	-
	3,06,250	3,06,250

Additional Information

1. Value of the closing stock as on Mar 31, 2009 is Rs 10,000
2. Wages and salaries outstanding is Rs 250
3. Insurance prepaid is Rs 1,000
4. Provide for doubtful debts on the debtors at the rate of 10%
5. Depreciate the machinery @ 10% and the furniture @ 15%
6. Goods costing Rs 6,000 have sold on the approval basis for Rs 7,500, but these were not approved by the customers as yet.