The following information have been taken from the trial balance of M/s Fair Brothers Ltd.

You are required to prepare the trading and profit and loss account and a balance sheet as at March 31, 2006.

Adjustments 1. Wages include Rs. 4,000 for erection of new machinery on April 01, 2005.
2. Provide 5% depreciation on furniture.
3. Salaried unpaid Rs.1,600.
4. Closing stock Rs. 81,850.
5. Create a provision at 5% on debtors.
6. Half the amount of bill is recoverable.
7. Rent is paid up to July 30, 2006.
8. Insurance unexpired Rs. 600.

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Debit Balances Cash Wages Return outwards Bad debts Salaries Octroi Charity Machinery Debtors (Including a dishonoured bill of Rs. 1,600) Stock Purchases Repairs Interest on loan Sales tax Insurance Rent Amount Credit balances Rs. 20,000 Sales 45,050 Loan 12% (1.7.2005) 4,800 Discount received 4,620 Return (Purchase) 16,000 1,000 250 32,000 60,000 81,600 2,60,590 3,350 1,200 1,600 2,000 4,000 5,38,060 Creditors Capital Amount Rs. 3,61,000 40,000 1,060 390 60,610 75,000 5,38,060