Prepare a Trading and Profit and Loss A/c and Balance Sheet as on 31st Dec. 2008.

1. Salaries 100 and Taxes 200 were outstanding, but insurance * 50 is prepaid. 2. Commission 100 received in advance for next year. 3. Interest 210 is to be received on Deposits and Interest on bank overdraft 300 is to be paid. 4. Bad Debts Provision to be maintained at 1000. 5. Stock on 31.12.2008 is 4500.

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Capital Cash Bank Overdraft 10,000 1500 2000 Purchases and Sales 12,000 15,000 Returns 1000 2000 Establishment Expenses 2200 Taxes and Insurance 500 Bad Debts and Debts Provision 500 700 Debtors and Creditors 5000 2000 Commission 500 Deposits 4000 Opening Stock 3000 Drawings 1400 Furniture 600 B/R and R/P 3000 2500