M/s Saniya Sports Equipment does not keep proper records. From thefollowing information find out profit or loss and also prepare balance sheet for the year ended December 31, 2005.

Drawing Rs.10,000 p.m. for personal use, fresh capital introduce during the year Rs.2,00,000. A bad debts of Rs.2,000 and a provision of 5% is to be made on debtors. outstanding salary Rs.2,400, prepaid insurance Rs.700, depreciation charged on furniture and machine @ 10% p.a.

Transcribed Image Text:

Cash in hand Bank overdraft Stock Sundry creditors Sundry debtors Bills payable Furniture Bills receivable Machinery Investment Dec. 31, 2004 Rs. 6,000 30,000 50,000 26,000 60,000 6,000 40,000 8,000 50,000 30,000 Dec. 31, 2005 Rs. 24,000 80,000 40,000 1,40,000 12,000 60,000 28,000 1,00,000 80,000