Taking the following adjustments into consideration and with the help of the undermentioned Trial Balance, Prepare Manufacturing Account and Trading and Profit and Loss Account for the year ending 31st March,. 2007 and Balance Sheet at that date:

(i) Depreciation: 10% on Plant and 5% on Furniture.

(ii) Outstanding Expenses: Wages Rs. 600 and Salaries Rs. 250.

(iii) Outstanding Interest on Loan Rs. 125.

(iv) Closing Stock Rs. 16,000.

(v) Make a provision for Bad and Doubtful Debts of Rs. 400.

(vi) Make a provision of 2½% for discount on debtors.

Trial Balance as on 31st March, 2007 Name of Accounts Dr. Cr.

Rs. Rs.

Capital — 40,000 Opening Stock 20,000 —

Wages 10,000 —

Coal 2,000 —

Purchases 82,000 —

Sales — 1,18,000 Repairs 1,000 —

Carriage Inwards 500 —

Carriage Outwards 900 —

Cash-in-hand 200 —

Building 6,500 —

Plant 7,800 —

Tools 1,500 —

Office Rent 2,425 —

Manufacturing Light 2,400 —

Legal Charges 600 —

Office Salary (Less: P. F. Contribution) 6,600 —

Contribution in P. F. Employer’s Share, 50% 800 —

Sales Return 1,200 —

Drawings 4,000 —

Income-tax 1,500 —
Bank Loan — 5,000 Interest 125 —
Debtors & Creditors 16,000 9,000 Cash at Bank 1,500 —
Furniture 1,500 —
Purchase Return — 2,000 Office Expenses 600 —
Manufacturing Expenses 1,400 —
Insurance Premium 250 —
Manufacturing Insurance Premium 700 —
Total 1,74,000 1,74,000