ILLUSTRATION 9 Following is the Balance Sheet of Stan, a small trader as on 31-03-2014. Liabilities ($'000) Assets ($'000) Capital 200 Fixed Assets 145 Creditors 50 Stock 40 Debtors 50 Cash in Hand 5 Cash at Bank 10 250 250 A fire destroyed the accounting records as well as the closing cash of the trader on 31-3-2015. However, the following information was available: (a) Debtors and creditors on 31-3-2015 showed an increase of 20% as compared to 31-3-2014. (b) Credit Period: Debtors-1 month Creditors-2 months (c) Stock was maintained at the same level throughout the year. (d) Cash sales constituted 20% of total sales. (e) All purchases were for credit only. (f) Current ratio as on 31-3-2015 was exactly 2. (g) Total expenses excluding depreciation for the year amounted to $2,50,000. (h) Depreciation was provided at 10% on the closing value of fixed assets. (i) Bank and cash transactions : (1) Payments to creditors included $50,000 by cash. (2) Receipts from debtors included $5,90,000 by way of cheques. (3) Cash deposited into the bank $1,20,000. (4) Personal drawings from bbank$50,000. (5) Fixed assets purchased and paid by cheques $2,25,000. You are required to prepare : (a) Trading and Profit & Loss Account of Sanjay for the year ended 31-3-2015 and (b) Balance Sheet on that date. For your exercise, assume cash destroyed by fire is written off in the Profit and Loss Account