Balance Sheet as at March 31, 2005 Liabilities Amount Assets Amount Rs. Rs. Creditors 50,000 Debtors 75.000 Bills payable 50,000 Less Further (2.500 Loan 1.10.000 bad debts 72.500 Add Outstanding interest 5.500 1.15,500 Less Discount 01.450) General reserve 50,000 71.050 Capital 2.70,000 Less New Provision 13.553) 67.497 Add Net Profit 10.217 Investment 65,000 2.80.217 Outstanding interest 2.600 on investment Less Drawings 120.020) Insurance pre-paid 500 2.60.197 Less Interest on drawings 1.200 2,58,997 Plant and Machinery 1.14.000 Outstanding salary 200 Land and Building 2.39.700 Outstanding wages 100 Closing stock 35,500 5.24.797 5.24.797 Illustration 6 From the following balances of M/s Keshav Bros. You are required to prepare trading and profit and loss account and a balance sheet of March 31. 2005. Debit balances Amount Credit balances Amount Rs. Rs. Plant and Machinery 1.30.000 Sales 3,00.000 Debtors 50,000 Return outwards 2.500 Interest 2.000 Creditors 2.50.000 Wages 1.200 Bills payable 70.000 Salary 2.500 Provision for bad debts 1.550 Carriage inwards 500 Capital 2.20.000 Carriage outwards 700 Rent received 10.380 Return inwards 2.000 Commission received 16.000 Factory rent 1.450 Office rent 2.300 Insurance 780 22.500 Buildings 2.80,000 Bills receivable 3,000 Cash in hand 22.500 Cash at bank 35.000 Commission 500 Opening stock 60,000 Purchases 2.50.000 Bad debts 3.500 8.70,430 8.70.430 Furniture c6 Adjustment (1) Provision for bad debts @ 5% and further bad debts Rs. 2,000, (11) Rent received in advance Rs. 6.000. (111) Prepaid insurance Rs. 200 (tv) Depreciation on furniture 5%, plant and machinery @ 6%, building @ 7%