From the following Trial Balance of Ravinder prepare Trading and Profit and Loss Account for the year ended March 31, 1987 and Balance Sheet as on that date.

Trial Balance as on March 31, 1987

Name of the Account	Debit balance	Credit balance
Stock on April 1, 1986	24,200
Cash in hand	4000
Cash at bank	12900
Leasehold Premises (lease for five years commencing from April 1, 198	20000
Machinery	30000
Furniture	15000
Building	60000
Drawings	5000
Capital		160000
Purchases and Sales	96000	145000
Debtors and Creditors	50000	40000
Returns	3000	4300
Freight	6000
Wages	17500
Trade Expenses	4750
Salaries	12000
Printing and Stationery	1800
Bad Debts	4000
Provision for Bad Debts .		4000
Rent received		3100
10% Loan (taken on October 1, 1986) Interest on Loa	250	10000
Total	3,66,400	3,66,400

You are required to make the following adjustments:

a) Stock on March 3 1, 1987 was valued at Rs. 45,600.

b) Write off Rs. 2,000 as bad debts and make a provision for doubtful debts at 5%

on sundry debtors.

c) Charge depreciation on Machinery at 10% and on Building at 2%%.

d) Calculate interest on capital and drawings at 6% per annurn.

e) The Manager is entitled to a commission of 5% on the net profit before charging

such commission