EXAMPLE 11.27 The following is the trial balance of Ms Padma as on 31 March 2013. Prepare the trading and profit and loss account for the year ended 31 March 2013, and a balance sheet as at that date. Particulara Dr. Cr. 157 1,00,000 Capital Building Drawings Fumhur 15,000 18,000 7,500 25,000 15,000 1,00,000 Motor Loan trom Ashok @ 12% p.a. Herest paid on loan Purchases and sales Opening stock Establishment expenses Wayes Insurance Commission Debtors and creditors Bank balance 900 75,000 25,000 15,000 2,000 1,000 7,500 10,000 28,100 20,000 2,32,500 I 2,32,500 Adjustments: 1. The value of closing stock on 31 March 2013 was 32,000. 2. Outstanding wages amounted to 500. 3. Prepaid insurance 300 4. Commission received in advance amounted to 800. 5. Allow interest on capital @ 10% p.a. 6. Depreciate building by 2.5%p.a., furniture by 10% p.a., and motor car by 10% p.a. 7. Charge 2500 as interest on drawings. 8. Balance of interest due on the loan is also to be provided for