From the following Trial balance of Coolwell Hotel, prepare a Trading and Profit and Loss A/c for the year ended 31st December 2002 and a Balance Sheet as on that date:

Adjustments:

1. Closing stock 29,300. 2. Make Reserve for Doubtful Debts 5% on Debtors. 3. Charge 5% interest on capital. 4. Depreciate Machinery 10%, Furniture 15%. 5. Carry forward 400 sundry receipts, 240 Rent and Rates, 125 Fire insurance.

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P Opening Stock 26,420 Purchases 42,200 Returns Outward 8500 Wages 21,000 Factory Rent 470 Sales 91,150 Bank Charges 140 Returns Inward 1680 Carriage inward 4200 Coal and Power 720 Salaries 4200 Audit fee 470 Rent and Rates 720 Advertisement 120 Postage 170 Discount (Cr) 120 General Exp. 1990 Bills Receivable 1270 Fire Insurance 490 Cash in Hand 730 Cash at Bank 13,120 Debtors 37,800 Creditors 12,170 Sundry Receipts 500 Machinery 14,270 Furniture 1250 RDD 2470 Capital 65,000 Drawings 6480