Prepare Trading and Profit and Loss Account for the year ending 31st Dec.,2009 and Balance Sheet as on that date from the following Trial Balance:

Dr. Cr.

Rs. Rs.

Capital 10,000 Cash 1,500 Bank Overdraft 2,000 Purchases and Sales 12,000 15,000 Returns 1,000 2,000 Establishment Expenses 2,200 Tax and Insurance 500 Bad Debts and Bad Debts Provision 500 700 Debtors and Creditors 5,000 2,000 Commission 500 Deposits 4,000 Opening Stock 3,000 Drawings 1,400 Furniture 600 B/R and B/P 3,000 2,500 34,700 34,700

(i) Salaries Rs. 100 and taxes Rs.200 are outstanding but insurance Rs. 50 is prepaid.

(ii) Commission Rs. 100 is received in advance for next year.

(iii) Interest Rs. 210 is to be received on Deposits and Interest on Bank overdraft Rs. 300 is to be paid.

(iv) Bad Debts provision is to be maintained at Rs. 1,000.

(v) Depreciate furniture by 10%.

(vi) Stock on 31-12-2009 was valued at Rs. 4,500.