From the following trial balance of Faris All Qureshi & Bros. and additional information, prepare Trading and Profit & Loss account and Balance sheet for the Year ended June

30 2019

Particulars

Capital

Furniture

Purchases

Debtors.

Interest

earned salaries

Sales

Purchase retums

Wages

Rent

Sales return.

Dr

Cr

Particulars

100,000 Transportation

out

Provision for

bad debts

Printing and

stationery Opening stock

Office

expenses

Bank overdraft

321,000 Drawing

5,000

Creditors

Dr

7,000

Cr

20,000

150,000

6,000

8,000

50,000

12,000

4.000

30,000

2,000

24,000

120.000

20,000

15,000

10,000

Insurance expense

Total

12,000

558,000 558,000

Additional Information

1. Depreciation furniture by 10% by written down method (WDM).

2. A provision for doubtful debts is to be created to the extent of 5% on sundry debtors. 3. Salaries for the month of June, 2019 amounting to Rs. 3,000 were unpaid which must be

provided for. However, salaries included Rs. 2,000 paid in advance. Office expenses outstanding Rs. 8,000.

4. Insurance amounting to Rs. 2,000 is prepaid. 5. Stock use for private purpose Rs. 6,000 and

closing stock Rs. 60,000.