The following balances were extracted from the books of Shri R. Lal on March 31, 2005

Prepare the trading and profit and loss account and a balance sheet as on March 31, 2005 after keeping in view the following adjustments :
(i) Depreciate old building by Rs. 625 and addition to building at 2% and office furniture at 5%.
(ii) Write-off further bad debts Rs. 570.
(iii) Increase the bad debts reserve to 6% of debtors.
(iv) On March 31, 2005 Rs. 570 are outstanding for salary.
(v) Rent receivable Rs. 200 on March 31, 2005.
(vi) Interest on capital at 5% to be charged.
(vii) Unexpired insurance Rs. 240.
(viii) Stock was valued at Rs. 14,290 on March 31, 2005.

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Account Title Capital Drawings Purchases Sales Purchases return Stock on April 01, 2004 Bad debts Bad debts reserve April 01, 2004 Rates and Insurance Discount (Cr.) Bills receivable Sales returns Wages Buildings Amount Account Title Rs. 1,00,000 17,600 80,000 1,40,370 2,820 11,460 1,400 3,240 1,300 190 1,240 4,240 6,280 25,000 Rent (Cr.) Railway freight on sales Carriage inwards Office expenses Printing and Stationery Postage and Telegram Sundry debtors Sundry creditors Cash in bank Cash in hand Office furniture Salaries and Commission Addition to buildings Amount Rs. 2,100 16,940 2,310 1,340 660 820 62,070 18,920 12,400 2,210 3,500 9,870 7,000