Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2005.

The following additional information is available :

1. Stock on December 31, 2005 was Rs. 30,000.

2. Depreciation is to be charged on building at 5% and motor van at 10%.

3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.

4. Unexpired insurance was Rs. 600.

5. The Manager is entitled to a commissiion @ 5% on net profit before charging such commission.

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Account Title Opening stock Purchases Drawings Buildings Motor van Freight inwards Sales return Trade expense Heat and Power Salary and Wages Legal expense Postage and Telegram Bad debts Cash in hand Cash at bank Sundry debtors Investments Insurance Machinery Amount Rs. 2,26,000 4,40,000 75,000 1,00,000 30,000 3,400 10,000 3,300 8,000 5,000 3,000 1,000 6,500 79,000 98,000 25,000 40,000 3,500 22,000 11,78,700 Account Title Sales Return outwards Creditors Bills payable Interest receivced Capital Amount Rs. 6,80,000 15,000 50,000 63,700 20,000 3,50,000 11,78,700