From the following Particulars extracted from the books of Oasis Restaurant prepare Trading and Profit and Loss A/c and Balance Sheet as on 31st Dec. 2002.

Adjustments:

1. Stock on hand on 31.12.200240120. 2. Depreciate business premises by 600 and furniture by 10%. 3. Make a Reserve for Bad Debts at 5% on Debtors. 4. Allow interest on capital at 5%. 5. Carry forward 1400 for unexpired insurance.

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Debit Balances Credit Balances Drawings 10,000 Capital 60,000 Furniture 5200 Bank Overdraft 8400 Business Premises 40,000 Creditors 26,000 Debtors 36,000 Rent 2000 Stock (1.1.2002) 44,000 Sales 3,00,000 Purchases 2,20,000 Discount 4000 Returns 4000 Reserve for Bad Debts 1000 Discount 3200 Taxes and Insurance 4000 General Expenses 8000 Salaries 18,000 Commission 4400 Carriage on Purchases 3600 Bad Debts 1000 4,01,400 4,01,400