Illustration 3: From the following information extracted from the books of Jain & Co, Prepare Trading, Profit & Loss A/c for the year ended and Balance sheet as on that date. u30 Debit Rs Credit Rs 90,300 1,37,200 2,200 40.000 5,000 30,000 20,000 8,000 25,000 Particulars Purchase Sales Return inward Stock 1.1.96 Drawing Building Machinery Furniture Debtors Wages Carriage inwards Rent and Rates Bad debts Cash Investment Postages Insurance Return outwards Capital Creditors Interest Commission Provision for Bac debts Bank OD Salaries Total 3.000 2.000 1.500 1.000 3,500 10,000 2.500 2.000 1.300 50.000 24,000 500 3,250 750 40.000 11,000 2,57,000 2,57,000 Additional Information: 1. Value of the stock on 31. 12. 96 Rs. 65,000 2. Goods worth Rs 800 for his personal use of the proprietor 3. Rs. 400 of insurance paid is nothing but advance payment 4. Salary Rs. 1000 for the month of Dec 1996 has not yet paid outstanding 5. Charge depreciation (a) Building 2% per annum (b) Machinery 10% per annum (c) Furniture 15% per annum 6. Maintain provision for doubtful debts @ 5% on sundry debtors. Prepare Trading and Profit & Loss Account of Jain & Co for the year ended 1995-96