The following balances have been extracted from the trial of M/s Haryana Chemical Ltd. You are required to prepare a trading and profit and loss account and balance sheet as on December 31, 2005 from the given information.

Adjustments 

1. Closing stock was valued at the end of the year Rs. 40,000.

2. Salary amounting Rs. 500 and trade expense Rs. 300 are due.

3. Depreciation charged on building and machinery are @ 4% and @ 5% respectively.

4. Make a provision of @ 5% on sundry debtors.

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Account Title Opening stock Purchases Sales return Cash in hand Cash at bank Carriage Free hold land Patents General Expenses Sundry Debtors Building Machinery Insurance Drawings Motor vehicle Bad debts Light and Water Trade expenses Power Salary and Wages Loan a 15% (01.09.2005) Amount Rs. 50,000 1,25,500 2,000 21,200 Rent 12,000 Interest 100 2,000 32,500 86,000 34,500 12,400 10,000 10,500 2,000 1,200 Account Title 3,20,000 Capital 1,20,000 2,000 3,900 5,400 3,000 Sales Purchases return Creditors 8,56,200 Bills payable Amount Rs. 3,50,000 2,500 25,000 5,000 2,000 1,71,700 3,00,000 8,56,200