From the following Trial Balance of M/s Sehgal & Co., you are asked to prepare Trading and Profit and Loss Account for the year ending 31.3.2008 and Balance Sheet as on that date;

Debit Balances:

Dr.

Rs.

Cash in Hand 540 Cash in Bank 2,630 Purchases 40,675 Return inwards 680 Wages 8,480 Fuel 4,730 Carriage in purchase 2,040 Carriage on sales 3,200 Stock (1.4.2007) 5,760 Building 32,000 Land 10,000 Machinery 20,000 Patents 7,500 Salaries 15,000 General Expenses 3,000 Insurance 600 Drawings 5,245 Sundry debtors 14,500 Credit Balances:
Sale 98,780 Returns Outward 500 Capital 62,000 Sundry Creditors 6,300 Rent 9,000

(a) Stock in hand on 31.3.2007 Rs. 6,800.

(b) Machinery is to be depreciated @ 10% and patents @ 20%.

(c) Outstanding salaries Rs. 1,500.

(d) Prepared Insurance Rs. 170.

(e) Rent Receivable Rs. 1,000.

(f) Bad Debts Rs. 725