Cr.) Illustration 10 Following is the Trial Balance of Mr X as on 31.03.2017. You are required to prepare Trading and Profit and Loss Accounts for the year ended 31.03.2017 and a Balance Sheet as on that date after making necessary adjustments. Trial Balance as on 31.03.2017 Particulars Dr. Particulars Purchases 1,20,000 Sales 2,00,000 Sales Ledger Balance 60,800 Purchase Ledger Balance 48,800 Return Inward 4,000 Discount Received 1,200 Discount Allowed 4,000 Return Outward 4,800 Building 90,400 Capital 1,22,400 Depreciation on Building 4,000 Annual Apprenticeship Premium for the period upto 30.6.13 4.800 Income Tax 4,000 Provision for Bad Debts 4,000 Wages 8,000 Commission 3,200 955 Salaries 12,000 Stock in trade (01.04.2016) 40,000 Trade Expenses 8.000 Insurance 800 Cash in Hand and Bank 33,200 3,89,200 3,89,200 Adjustments : (1) Stock in trade on 31.03.2017 240,000. (ii) Stock valued at 78,000 was destroyed by fire on 15.03.2017 for which insurance company admitted a claim of 34,800. (iii) Out of purchase, goods of 8,000 was distributed as free sample. (iv) Maintain provision for bad debts @ 5% on Debtors and provision for discount @ 2% on Debtors