Illustration 9. The following is the Trial Balance of B. Govil on 31st March, 2012: Dr: Cr. Z 540 12.630 1,40,675 2.58.780 2,680 1,500 Cash in hand Cash at Bank Purchases Account Sales Account Returns Inwards Account Returns Outwards Account Wages Account Fuel and Power Account Carriage on Sales Account Carriage on Purchases Account Stock Account (1st April, 2011) Buildings Account Freehold Land Account Machinery Account Patents Account Salaries Account 20,480 4,730 3,200 2,040 25,760 30,000 20,000 20.000 7.500 15,000 966 13,000 600 15,245 General Expenses Account Insurance Account Drawings Account Capital Account Sundry Debtors Sundry Creditors 82,000 14.500 6,300 3,48,580 3,48,580 Taking into account into following adjustments, make the necessary journal entries, and prepare Trading and Profit and Loss Account and the Balance Sheet : (aStock on hand on 31st March, 2012 is 26,800. (b) Machinery is to be depreciated at the rate of 10% and patents at the rate of 20%. (c) Salaries for the month of March, 2012 amounting to 1,500 were unpaid. (d) Insurance includes a premium of 170 on a policy, expiring on 31st September, 2012. (e) Wages include a sum of 2,000 spent on the erection of a cycle shed for employees and customers. A Provision for Bad and Doubtful Debts is to be created to the extent of 5 per cent on Sundry Debtors