Illustration 8 c1 From the following balances prepare a trading and profit and loss account and balance sheet for the year ended March 31, 2006 Account Tule Amount Account Title Amount Rs. Rs. Carriage on goods 8,000 Cash in hand 2.500 purchased Bank overdraft 30.000 Carriage on goods sold 3,500 Motor car 60.000 Manufacturing expenses 42.000 Drawings 8.000 Advertisement 7,000 Audit fees 2,700 Excise duty 6,000 Plant 1,53,900 Factory lighting 4.400 Repairs to plant 2.200 Debtors 80,000 Stock at the end 76.000 Creditors 61.000 Purchases less return 1,60,000 Dock and Clearing charges 5,200 Commission on purchases 2.000 Postage and Telegram 800 Incidental trade expenses 3.200 Fire Insurance Premium 3.600 Investment 30.000 Patents 12.000 Interest on investment 4.500 Income tax 24,000 Capital 1,00,000 Office expenses 7,200 Sales less return 5,20,000 Salest tax paid 12.000 Discount allowed 2.700 Discount on purchases 3.400