1 Provision for Discount on Debtors (2% of 24000-1000 Common debt - 1150 Provosion). 2 A purchase of 400 ommited now added in purchase and creditor Illustration 13: From the following particulars prepare Trading and Profit and Loss account and a balance sheet of Mr. 'R'as on 31-3-2017 Particulars Debit Credit Building 5,00,000 b42 Machineries 2,00,000 Furniture 1,00,000 Cash at Bank 90,000 Cash on hand 10,000 18 % p.a. loan obtained by Mr. Ron 1-6-2013 on mortagage of his building R's capital 3,00,000 Sundry debtors/Sundry creditors 5,00,000 5,20,000 Stock on 1-4-2016 1,20,000 4,00,000 Purchases/Sales 25,00,000 32,20,000 Sales returns/Purchases returns 1,20,000 1,00,000 Rent 60,000 Establishment expenses 1,80,000 Electricity charges Telephone charges 15,000 10,000 Commission on sales 30,000 Insurance premium 10,000 Bad debts 20,000 Bills receivable 75,000 45,40,000 45,40,000 You are required to provide for depreciation on building at 5%p.a.; on machineries at 25%p.a.; on furniture at 10% p.a. Provision for bad and doubtful debts is to be made at 5% on sundry debtors, Mr. R's manager is entitled to a cfommission of 10% on the net profit after charging his commission. Closing stock was not taken on 31-3-2017 but only on 7-4-2017. Following transactions had taken place during the period from 1- 4-2017 to 7-april, 2017 sales 2,50,000, purchases 31,50,000 stock on 7th April 2017 was 1,80,000 and the rate of gross profit on sales was 20%. Insurance premium mentioned in the trial balance was in respect of building and machineries. Interest on mortgage loan to be provided up to 31-3-2017 [CA (F) May, 1997] (Modified)