Following data is extracted from Dewan Farooq Motors Ltd (DFML) from the year 2019. Amounts are in millions.(10)Trial balanceDr. Cr. Capital150,000 Accounts payable30,000 Notes payable10,000 Reserve for building extension25,000 Allowance for doubtful debts1,000 P&L A/c 1st Jan, 20193,420 Discount received4,400 Sales575,000Discount allowed 4,750Opening stock 2019 55,000Purchases 448,000Buildings50,000Machinery & plant 75,000Accounts receivable 36.400Bank 24,400Investment in 9% Government loan (par) 10,000Notesreceivable Salaries & wages 22,500 33,000 Auditfees 5,000 Officeexpenses 22,000 Repairs &maintenance 11,800 Bad debts 270 Interestexpense 700 7,98,820

Additionalinformation :

1. Stock on hand, 31stDecember, 2019 Rs.68,000

2. Allowance fordoubtfuldebtsisto be increased to 1,300

3. Depreciation on Buildings is to be provided @2%perannum Machinery& plantistobe depreciated @20% "Diminishing/reducingvalues. 5. Intereston Governmentloan isto berecognized. Required: 7,98,820

1.Prepareincome statementORTradingand ProfitandLoss Accountafterincorporatingall Adjustments given in the additionalinformation.

2.Prepare balancesheetforyear2019.