From the following Trial balance, prepare a Trading and Profit and Loss A/c and Balance Sheet for the year ending 31.12.2002:

Adjustments:

1. Closing Stock 9900. 2. Depreciate Furniture 5%, Motor Car 10%. 3. Provide 5% reserve for doubtful debts. 4. Pre-paid insurance 200. 5. Outstanding sundry expenses 250.

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Capital 15,000 Purchases 55,000 Sales 75,000 Drawings 2500 Stock 11,000 Bank 2100 Furniture 1300 Creditors 7900 Land and Buildings 10,000 Sundry Debtors 9000 Rent 500 Sales returns 1000 Discounts Insurance 200 1000 Sundry expenses 2000 Commission 1000 Carriage inwards 900 Printing and stationery 400 Motor Car 5000 Cash 600 1,00,700 1,00,700