From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2005.

Adjustments 

1. Closing stock was Rs.45,000.

2. Provision for bad debts is to be maintained @ 2% on debtors.

3. Depreciation charged on : furniture and fixture @ 5%, plant and Machinery @ 6% and motor car @ 10%.

4. A Machine of Rs.30,000 was purchased on July 01, 2005.

5. The manager is entitle to a commission of @ 10% of the net profit after charging such commission.

Transcribed Image Text:

Account Title Drawings Sundry debtors Bad debts Trade Expenses Printing and Stationery Rent Rates and Taxes Feright Return inwards Opening stock Purchases Furniture and Fixture Plant and Machinery Bills receivable Wages Cash in hand Discount allowed Investments Motor car Amount Rs. 20,000 80,000 1,000 2,400 2,000 5,000 4,000 7,000 25,000 1,80,000 20,000 1,00,000 14,000 10,000 6,000 2,000 40,000 51,000 5,69,400 Account Title Capital Return outwards Bank overdraft Provision for bad debts Sundry creditors Bills payable Sales Amount Rs. 2,00,000 2,000 12,000 4,000 60,000 15,400 2,76,000 5,69,400