949 Cr.) 260 40 Illustration 4 The following is the Trial Balance of Mr Bharat on 31st December, 2016: Particulars Dr.) Capital 4,000 Sundry creditors 5,200 Plant & Machinery 5,000 Office furniture and fittings Stock as on 1st January, 2016 4,800 Motor van 1,200 Sundry debtors 4,570 Cash in hand Cash at bank 650 Wages 15,000 Salaries 1,400 Purchases 21,350 Sales 48,000 Bills payable 560 Bills Receivable 720 Returns inwards 930 Provision for doubtful debts 250 Drawings 700 Returns outwards 550 Rent 600 Factory lighting and heating Insurance 630 General expenses 100 Bad debts 250 Discount 650 370 TOTAL 58,930 58,930 The following adjustments are to be made : (i) Stock on 31st December, 2016 5,200: (ii) 3 months factory lighting and heating is due, but not paid 30; (iii) 5% depreciation to be written-off on furniture; (iv) Write-off further bad debts 70; (v) The provision for doubtful debts to be increased to 300 and provision for discount on debtors @ 2% to be made (vi) During the year machinery was purchased for 2,000, but it was debited to Purchases Account You are required to make the necessary Journal entries and prepare Trading and Profit and Loss Account and the Balance Sheet. 80