Prepare a trading and profit and loss account for the year ending December 31, 2005. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet at the end of the year.

Adjustments 

1. Commission received in advance Rs.1,000.

2. Rent receivable Rs. 2,000.

3. Salary outstanding Rs. 1,000 and insurance prepaid Rs. 800.

4. Further bad debts Rs. 1,000 and provision for bad debts @ 5% on debtors and discount on debtors @ 2%.

5. Closing stock Rs. 32,000.

6. Depreciation on building @ 6% p.a.

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Account Title Stock Wages Salary Purchases Sales return Sundry Debtors Discount allowed Insurance Rent Rates and Taxes Fixtures and fittings Trade expenses Bad debts Drawings Repair and renewals Travelling expenses Postage Telegram expenses Legal fees Bills receivable Building Amount Rs. 50,000 3,000 8,000 1,75,000 1,500 2,000 32,000 1,600 4,200 300 200 500 Account Title 3,000 82,000 1,000 Commission received 3,200 Rent 4,300 Loan 20,000 50,000 1,10,000 5,51,800 Sales Purchases return Discount received Provision for bad debts Capital Bills payable Amount Rs. 1,80,000 2,000 500 2,500 3,00,000 22,000 4,000 6,000 34,800 5,51,800