From the following Trial Balance of Sri Prem, prepare the Trading and Profit and Loss Account for the Year ending 21st March 2008 and the balance sheet as on that date after taking into account the adjustments given below:

Dr. Cr.

Rs. Rs.

R. Ranjan’s Capital 29,000 R. Ranjan’s Drawings 760 Purchase and Sales 8,900 15,000 Purchase and Sales and returns 280 450 Stock (1.4.2007) 1,200 Wages 800 Building 22,000 Freight and Carriage 2,000 Trade Expenses 200 Advertisement 240 Interest 350 Taxes and Insurance 130 Debtors and Creditors 6,500 1,200 Bills Receivable and Bills payable 1,500 700 Cash at Bank 1,200 Cash in hand 190 Salaries 80 _________ Rs. 46,700 Rs. 46,700

(i) Stock on 31st March 2008 was valued at Rs. 1,500.

(ii) Insurance was Prepaid to the extent of Rs. 40.

(iii) Outstanding liabilities were; Salaries Rs. 200, Taxes Rs. 130.

(iv) Depreciate Building at 2% per annum