#1 COMPULSORY QUESTION/CASE STUDY Revisit A) Following debit and credit balances are taken from the Trial Balance of Mr. Verma & Co as on 31st March 2020. Prepare a Trading Account, Profit and Loss Account for the year ended on 31st March 2020 and the Balance Sheet as on that date taking the adjustments into consideration. (12 marks) Debit Balances: Drawing: Rs.1700, Plant & Machinery: Rs.12000, Horses & Carts: Rs.2600, Debtors: Rs.3600, Purchases: Rs.2000, Wages: Rs.800, Cash at Bank: Rs.2600, Salaries: Rs.800, Repairs: Rs.190, Opening Stock: Rs.1600, Rent: Rs.450, Miscellaneous Exps:Rs.150, Bad Debts: Rs.500, Carriage Inwards: Rs.160. Credit Balance: Creditors: Rs 2000, Sales: Rs. 4200, Interest: Rs.1350, Commission: Rs.1600, Capital: Rs.20000. Adjustments: 1) Closing Stock is Rs.1520. 2) Depreciate Plant & Machinery by 10%. 3) Further Bad Debts of Rs.300. 4) Create 5% provision on doubtful debts. 5) Commission received advance Rs.200. 6) Rs. 150 due for wages. 7) There is an accrued interest income of Rs.150. 8) Salary outstanding Rs.1550 B) "Balance sheet is a statement of resources raised and resources used"- Explain harks)