On 31st December, 2008 the following Trial Balance was extracted from the books of Rohan:

Dr. Cr.

Rs. Rs.

Capital 30,000 Drawings 5,000 Debtors and Creditors 20,000 10,000 Bank Loan 9,500 Interest on Loan 300 Cash 2,000 Provision for Bad Debts 700 Stock 1-1-2008 6,800 Motor Vehicles 10,000 Bank 3,500 Land and Buildings 12,000 Bad Debts 500 Purchases and Sales 66,000 1,10,000 Returns 8,000 1,500 Carriage Outward 2,500 Carriage Inward 3,000 Salaries 9,000 Rent and Insurance 3,000 Advertisement 3,500 Discount 500 General Expenses 3,400 B/R and B/P 6,000 2,000 Rent received _______ 300 1,64,500 1,64,500 Prepare Trading and Profit and Loss Account for the year ending 31st Dec.,2008 and Balance Sheet as on that date after taking into account the following:

(a) Depreciate Land and Buildings at 2 1 2 % and Motor Vehicles at 20%.

(b) Salaries outstanding Rs. 200.

(c) Prepaid Insurance Rs. 200.

(d) Provision for Doubtful Debts is to be maintained at 5% on Debtors.

(e) Stock on 31st December, 2008 was valued at Rs. 7,000.