From the following trial balance of M/s Sharda & sons as on 31st Dec2010 prepare the Trading and Profit and loss account and Balance Sheet Ledger Amount Dr Cr Capital 80,000 Drawing 18,000 Sales 1,55,000 Purchases 82,600 Stock(1.1.2010) 42,000 Return outward 1600 Carriage inward 1200 Wages 4000 Power 6000 Machinery 50,000 Furniture 14000 Rent 22,000 Salary 15,000 Insurance 3600 10% Bank loan 25,000 Debtors 20600 Creditors 18900 Cash in hand 1500 2,80,500 2,80,500 (6) Additional information 1. Closing stock 64,000. 2. Wages outstanding 2,400. 3. Bad debt 600 . 4. Provision for bad and doubtful debts to be 5% . 5. Rent is paid for 11 months. 6. Insurance premium is paid per annum , ending 28th Feb 2011. 7. Loan from the bank was taken on 1st July 2010. 8. Provide depreciation on machinery @10% and furniture @ 5%