26,000 9,000 Illustration 7 Robinhood is a retail trader whose stores has two departments dealing in clothing and sports equipment respectively. The following Trial Balance was extracted from books at 31.12.2017, the accounting year end : Particulars Dr. ) Cr.) Sales - Clothing 1.20,000 Sports Equipment 1,60,000 Stock at cost at 1.1.2017 - Clothing 10.000 Sports Equipment 16.000 Purchases Clothing and Sports Equipment 1,92.000 Establishment Expenses - Clothing 15,000 Sports Equipment 16.920 Sales and Administrative Expenses Clothing 7,400 Sports Equipment 5,840 Capital 20,000 Reserve 21,460 Creditors 5,800 Bank Overdraft 2.300 Debtors 8.600 Building - At cost 20,000 Provision for Depreciation 800 Furniture At cost Provision for Depreciation Vehicles - Al cost 42.000 Provision for Depreciation 20,400 Total 3,59.760 3,59,760 Additional information - (a) Gross profit is earned as follows: Clothing - 1/3rd of sales, Sports equipment - 3/10th of sales. (b) Stock is valued at cost on 31.12.2017: Clothing ? 8,000; Sports equipment 14,000 (c) Amounts prepaid at 31.12.2017: Establishment expenses Clothing 300. (d) Amount outstanding on 31.12.2017 Sales and administrative expenses -- Clothing 200; Sports equipment 700. (e) The sales staff receive commission in June of each year based on the gross profit earned in their department in the previous financial year: Clothing 2% of gross profit; Sports equipment -3% of gross profit. (t) In June 2017, additional furniture was acquired at a cost of 4,000 was debited to purchases. (8) Depreciation is provided annually on fixed assets at the following percentage of the cost of assets held at the relevant accounting year end Building -2%; Furniture - 10%; Vehicles - 20%. (h) In August 2017, a motor vehicle which had been bought in January 2007 at a cost of 6,000 was scrapped, the firm did not receive anything for the scrap. (i) The fixed assets depreciation is apportioned to departments as follows: Clothing Sports Equipment Building 1/2 1/2 Furniture 3/5 2/5 Vehicles 5/12 7/12 c21 You are required to prepare the Trading and Profit and Loss Account for the year ended 31.12.2017 and the Balance Sheet as on that date