Illustration 14 From the following Trial Balance of Mr. S. Roy as on 31.3.2017, you are required to prepare a Trading and Profit and Loss Account for the year ended 31.3.2017 and a Balance Sheet as on that date after making necessary adjustments : Trial balance as on 31.03.2017 Debit Credit ) () Sundry Debtors / Creditors 5,00,000 2,00,000 Wages 1,00,000 Carriage Outward 1,10,000 958 Carriage Inward 50,000 General Expenses 70,000 Cash Discount 20,000 Bad Debts 10,000 Motor Car 2,40,000 Printing and Stationery 70,000 Furniture and Fittings 1,10,000 Advertisement 45,000 Insurance 45,000 Motor Car Expenses 40.000 Salesmen's Commission 87,500 Postage and Telephone 57,500 Salaries 1,60,000 Rates and Taxes 25,000 Capital / Drawings 20,000 1443,000 Purchases / Sales 15,50,000 19,87,500 Stock on 1.4.2014 2,50.000 Cash at Bank 60,000 Cash in Hand 10,500 36.30.500 36.30.500 Adjustments : (a) Stock on 31.3.2017 was valued at 7,25,000. (b) A provision for Doubtful Debts is to be created to the extent of 5% on Sundry Debtors. (c) Depreciate Furniture and Fittings by 10%, Motor Car by 20% (d) Mr. Roy had withdrawn goods worth *25,000 during the year for personal use. (e) Debtors include Bad Debts of 25,000. (t) 1/4th of Motor Car Expenses and depreciation on Motor Car should be charged to Mr. Roy's Personal Account for personal use of Motor Car