Cr. (Rs) Cr. (Rs) Illustration 27 Mr X. a trader, has extracted the following Trial Balance from his books as on 31st March, 1998: Dr. (Rs) Dr. (Rs) Purchases 4,00,000 Claim recoverable 5,000 Sundry debtors 1,50,000 Advertisement suspense 9,000 Cash in hand 4,000 Furniture and fittings 23,000 Cash at bank 8,000 Deposit with supplier 6,000 Rent, rates and taxes 3,000 Office equipment 10,000 Insurance premium 9,000 Bills receivable 6,000 Salaries 42,000 Bad debts 4.000 Carriage outwards 21,000 Sales 7,00,000 Carriage inwards 18,000 Opening stock 30,000 Sundry creditors 50,000 Electricity expenses 2,000 TOTAL 7,50,000 7,50,000 The following further information is provided : 1. A purchase invoice for Rs 15,000, received from a creditor, has not been entered through oversight. 2. The claim recoverable has been settled with the insurance company for Rs 2,000. 3. 50% of the advertisement suspense account is to be written off this year. The amount represents the cost of an advertising campaign conducted this year. 4. Depreciation is to be provided on straight-line method on furniture and fittings and office equipment at 5%. The original costs were : Furniture and fittings Rs 30,000; Office equipment Rs 15,000. 5. Goods costing Rs 5,000 were despatched out on 29th March. The sale, however, took place on 2nd April, 1998, when an invoice for Rs 7,500 was raised against the customer. 6. Insurance premium includes a prepaid amount of Rs 1,000. 7. The deposit with a supplier was made on 1st October, 1997. It carried interest @ 12% p.a. 8. Two bills receivable from customers of Rs 700 and Rs 1,300, were dishonoured on 30th March. These had earlier been discounted with the bank. 9. Provide 2% on sundry debtors for doubtful debts. 10. Physical stock of goods on hand on 31st March, 1998 at cost was Rs 1,00,000. Prepare Trading, Profit and Loss Account and the Balance Sheet from the above information