From the transaction details of a construction company, M/s New Construction Limited, given in Table Q13.1, prepare the profit and loss account and the balance sheet. Assume all transactions to be cash transactions. Also, assume depreciation of machinery to be zero in this financial year.

Table Q13.1 T ransaction details of M/s New Construction Company Transaction Reference Description 1 T1 Purchased materials for ` 6,566 2 T2 Paid salaries ` 668 3 T3 Paid for telephone charges ` 1,691 4 T4 Interest on loan paid ` 177 5 T5 Tax paid ` 77 6 T6 Sold goods for ` 9,614 7 T7 Borrowed loan from Citibank `

3,176 8 T8 Purchased machinery for ` 3,176