(b) The following balances were extracted from the ABC company on 30th December 2014. Using the balances and the notes given below prepare the following (i) Profit and Loss account for the year ended 319 December 2014. 6 marks (ii) The Balance sheet as at that date. 6 marks Credit (Rs'000) 19,400 55,140 3,860 100 Balances as at 31st December 2014. Debit (Rs'000) Capital Purchases 41,400 Sales Trade debtors 7250 Trade creditors Stock on 15 January 2014 4,120 Purchase returns Balances at bank 3,920 Drawings 4,600 Motor van expenses 510 Motor van 6,250 Rent and rates 750 Salaries 8,120 Reserve for doubtful debts Bad debts 230 General expenses 1,120 Discount allowed 1,050 Discount received Insurance 240 Sales return 120 79,680 250 930 79,680 3 Notes: (i) Salaries and rent accrued but not paid Rs. 820,000/- Rs.150,000 (ii) Insurance paid in advance is Rs. 40,000/- (iii) Maintain the reserve for doubtful debts at Rs.300,000/- (iv) Depreciation on Motor van to be made at 10% (v) Closing stock on 315 December 2014 was valued Rs 5,040,000/