Eighth Wonder & Co is engaged in cosmetics business. The trial balance and additional information as on 31st March 2017 are given below. You are required to prepare the profit and loss account for the year and the Balance Sheet as on that date. 

Trial Balance of Eighth Wonder & Company as on 31st March 2017 

Additional Information:

1. Closing stock in hand as on 31st March 2017 is ₹ 625,000. 

2. Goods costing ₹ 90,000 have been sold on approval basis for ₹ 120,000 and included in sales. The approval from the customer is yet to be received. 

3. Provision for doubtful debts to be created at 2%. 

Transcribed Image Text:

Particulars Investments Machinery Furniture Bank Cash Debtors Opening stock Purchase Sales returns Rent paid Salaries Interest charges Wages Depreciation Commission paid Accrued interest Bad debts Dr. Particulars 3,500,000 Capital 5,140,875 Creditors 3,718,750 Loan from bank Sales 87,500 32,815 Provision for doubtful debts 1,750,000 Discount 4,375,000 Salaries outstanding 5,403,125 Interest on investments 59,060 109,375 201,250 54,750 1,192,200 196,875 459,375 65,625 32,500 26,379,075 Cr. 9,010,325 1,841,875 1,443,750 13,212,500 262,500 175,000 87,500 345,625 26,379,075