Illustration 17 From the following balances taken from the Ledger of Krishna on 31st March 2017, prepare the Trading and Loss Account for the year ended 31st March, 2017 and the Balance Sheet as at 31st March 2017 of Krishna in vertical format: Particulars Sundry Creditors 19.000 Building 15,000 Income tax 1,025 Loose tools 1,000 Cash at Bank 16.200 Sundry Expenses 1,990 Bank Interest (Cr.) 75 Purchases 1,57.000 Wages 10,000 Carriage inwards 1.120 Sales 1.85.000 Motor Van 12.500 960 Cash in hand 335 Bad Debts 100 Loan from Ram 2.500 Sundry Debtors 9,500 Investments 6,500 Provision for Bad Debts 1.600 Rent and Rates 850 Furniture 3.000 Stock (1-4-2016) 27,350 Capital 47 390 Discount allowed 630 Dividends received 535 Drawings 2.000 Bills payable 10,000 Adjustments to be taken into account: (a) Write-off further 300 as bad out of Sundry Debtors and create a provision for bad debts at 20% on Debtors. (b) Dividends accrued and due on Investments is 135. Rates paid in advance 100 and wages owing 450. (c) On 31.3.2017 stock was valued at 15,000 and Loose tools were valued at 800. (d) Write-off 5% for depreciation on Buildings and 40% on Motor Van. (e) Provide for interest at 12% p.a. due on Loan taken on 1.6.2016. (f) Income tax paid has to be treated as Drawings