From the following balances taken from the Trial Balance on 31st March, 2013 of Moti Lal & Sons., prepare Trading and Profit & Loss Account and Balance Sheet as at 31st March, 2013. Debit Balances (Contd.) Debit Balances Machinery 1,48,000 General Expenses 1733 Building 7,00,000 Insurance and Taxes 8,946 Computers 30,000 Printing Expenses 7.100 Sundry Debtors 27,200 Cash in hand 21.210 Opening Stock 8,400 Credit Balances Purchases 4,52,000 Capital 3,50,000 Sales Returns 800 Creditors 18,200 Drawings 36,000 Sales 7,80,000 Wages 39,800 Purchases Returns 8,250 Carriage Inward 8,000 Bank Overdraft 2,00,000 Carriage Outward 2,000 Loan (Long - Term) 1,50,000 The following adjustments are to be made: (i) The stock was valued at 7,120 on 31.03.2013. (ii) Audit fees due 31,400. (iii) Depreciation to be written off @ 10% p.a. on Machinery and Computers. (iv) Taxes due 2,500 and Insurance was prepaid to the extent of 1,200 (v) Loan was taken on 1st October, 2018 taken @ 10% p.a. interest was not yet paid. 2012 (vi) Debts of 1,200 proved irrecoverable hence written off and provision for doubtful debts was to be created @ 5% on Debtors. SOLUTION