7. From the following Balances prepare the income Statement & Balance Sheet as per Schedule VI for the year ending 31st March, 2017 and the Balance Sheet as on that day after making necessary adjustments : (870) ACCT602 5 Amount (Rs.) 800000 Particulars Harsh's Capital Harsh's Drawings Plant and Machinery (1.04.16) Plant and Machinery additions (1.07.16) Stock (1.04.16) Purchase 60000 Carriage Inwards Furniture & Fixtures Carriage Outwards Sundry Expenses Printing & Postage Rent, Rates & Taxes Bad Debts Sundry Creditors Sales Purchase Returns Provision for Bad & Doubtful Debts (1.04.16) Commission Received Sundry Debtors Insurance Salaries Cash in Hand Bash at Bank 200000 50000 150000 820000 20000 200000 25000 8000 12000 40000 5000 95000 1200000 10000 8000 16000 52000 10000 210000 62000 205000 Adjustments are required for the following: (i) Closing Stock as on 31.03.17 Rs. 140000 P.T.O. ACCT602 (ii) Create Provision for Bad & Doubtful Debt @ 5% on Sundry Debtors (iii) Provide for Depreciation : 1. Furniture & Fixtures - 10% 2. Plant & Machinery - 20% (iv) Insurance Paid in advance Rs. 1000 (v) Commission received in arrears Rs. 5000 (vi) Salaries Payable Rs. 15000