From the following particulars extracted from the books you are required to prepare a Trading and Profit and Loss Account for the year ended December 31, 1998, and a Balance Sheet as on that date, after making the necessary adjustments: $. David's Capital Account 2,08,000 David's Drawings Account 12,000 Purchases 90,000 Returns Inwards 2,000 Land & Buildings 60,000 Plant and Machinery 1,00,000 Sales 2,10,000 Returns Outwards 1,000 Salaries 12,000 Office Expenses 2,500 Office Furniture and Fixtures 5,000 Discount Account (Dr.) 1,200 joseph Debtors 26,600 Investments 40,000 Cash at Bank 26,600 Bills Payable 5,000 Stock (1st January 1997) 35,000 Wages 32,000 joseph Creditors 40,000 Postage and Telegrams 1,400 Insurance Charges 10600 Gas and Fuel 2,700 Bad Debts 600 office Rent 2,600 Freight and duty 9,000 loses Tools 2,000 Factory lighting 1,600 provision for Doubtful Debts 800 interest on investment 4,000 Cash on Hand 2,400 (i) (ii) Stock on December 31, 1998, was valued at Rs.66,000. Wages $. 1,600 and Salaries $. 600 were outstanding. (iii) Insurance prepaid was $. 400. (iv) A new Machine was installed on September 30, 1998, costing $. 14,000, but it was not recorded in the books and no payment was made for it. Wages $. 1,000 paid for its erection have been debited to Wages Account. (iv) Loose Tools were valued at $. 1,600 on Dec. 31, 1998. (v) Depreciate Plant & Machinery by 10% p.a., Furniture & Fixture by 5% p.a. and Land and Buildings by 2% p.a. (vi) Of the Sundry Debtors $. 600 are bad and should be written off. (vii) Maintain a provision of 5% on joseph Debtors for doubtful debts. (ix) Stock valued at $. 1,500 was destroyed by fire on 25-12-1998 but the Insurance Co., admitted a claim for $. 1,000 only.