From the following balance extracted from the books of of M/s Hariharan Brother, you are require to prepare the trading and profit and loss account and a balance sheet as on December 31, 2005.

Adjustments 1. Closing stock Rs. 14,000.
2. Wages outstanding Rs. 600, Salaries Outstanding Rs. 1,000, Rent outstanding Rs. 200.
3. Fire Insurance premium includes Rs. 1,200 paid in July 01, 2005 to run for one year from July 01, 2005 to June 30, 2006.
4. Apprenticeship Premium is for three years paid in advance on January 01, 2005.
5. Stationery bill for Rs. 60 remain unpaid.
6. Depreciation on Premises @ 5%, furniture @ 10%, Machinery @ 10%.
7. Interest on loan given accrued for one year @ 7%.
8. Interest on investment @ 5% for half year to December 31, 2005 has accrued.
9. Interest on capital to be allowed at 5% for one year.
10. Interest on drawings to be charged to him ascertained for the year Rs. 160.

Transcribed Image Text:

Debit balance Opening stock Purchases Return inwards Carriage inwards Carriage outwards Wages Salaries Rent Freight and Dock Fire Insurance premium Bad debts Discount Printing and Stationery Rates and Taxes Travelling expenses Trade expenses Business premises Furniture Bills receivable Debtors Machine Loan Investment Cash in hand Cash at bank Proprietor's withdrawals Amount Rs. 16,000 40,000 3,000 2,400 5,000 6,600 11,000 2,200 4,800 1,800 4,200 1,000 500 700 300 400 1,10,000 5,000 7,000 40,000 9,000 10,000 6,000 500 7,000 6,000 3,00,400 Credit balance Capital Sales Return outwards Apprenticeship premium Bills payable Creditors Amount Rs. 1,00,000 1,60,000 800 3,000 5,000 31,600 3,00,400