The following are the balances of Messrs Gupta & Co. as on 31st March, 2008:

Rs. Rs.

Cash in Hand 540 Patents 7,500 Cash at Bank 2,630 Salaries 25,000 Purchases 40,675 General Expenses 22,790 Return Inwards 680 Insurance 600 Wages 8,480 Drawings 5,245 Fuel & Power 4,730 Sundry Debtors 14,500 Bad Debts 210 Sales 98,440 Bad Debts Provision 340 Returns Outwards 500 Carriage on Sales 3,200 Capital 92,000 Carriage on Purchases 2,040 S. Creditors 6,300 Stock (1-4-1988) 5,760 Rent Cr. 9,000 Building 32,000 Freehold Land 10,000 Machinery 20,000 Prepare Trading and Profit and Loss A/c and a Balance Sheet as on 31st March 1989 after taking into account the following adjustments:

(i) Stock on hand as on 31st March,2008 is Rs. 6,800.

(ii) Machinery is to be depreciated at 10% and Patents at 20%.

(iii) Salaries for the month of March, 2008 amounting to Rs. 1,500 were unpaid.

(iv) Insurance includes a premium of Rs. 170 on a policy expiring on 30th September, 2008.

(v) Write off Rs. 500 as Bad Debts and create a provision for doubtful debts at 5% on Sundry Debtors.

(vi) Rent Receivable Rs. 1,000.