ILLUSTRATION NO: 3 The following is the trial Balance of Shumile Ltd. as at 31st Dec 2017 with the following information Particular Stock (1-1-2017) Free hold premises Plant and Machinery Sundry Debtors Purchases Cash at Bank Cash in hand Customs duty Fuel and power Paid up capital 6% Debenture Profit and Loss Account Sales Bad Debts Provision Director's fees Repair and Renewal Wages and salaries Insurance RS 50,000 144,000 171,000 39,000 90,000 30,000 800 3,500 1,500 150,000 200,000 17,500 240,000 1,200 4,000 2,400 46,000 4,100 Particulars Bad Debts Preliminary Expenses Interim Dividend Furniture and Fixture General Reserve Share premium Debenture Redemption Reserve Debenture Interest Paid Commission received Sundry creditors Bills payable Investment (short term) Rs 1,000 4,000 9,000 30,000 10,000 5,000 4,500 6,000 1,600 16,500 10,000 20,000 Prepared Trading& profit & Loss account or the year of ended 31st Dec 2017 and Balance sheet as at that date after considering the following information. 1. Create a Reserve for Bad debt @ 5% on Debtor. 2. Provide Depreciation on Plant and Machinery @ 10% Furniture and Fixture @ 5% 3. Write of half of preliminary expenses. 4. Directors recommended following in Annual General Meeting. Transfer to General Reserve Rs 12,000 Proposed a final Dividend of 10% on the paid up capital. A provision of tax of Rs 25,000 is to be made. 5. Shumile Company Incorporated with the authorized capital of Rs 500,000 divided with 50,000 shares of Rs 10 each. 6. Closing stock as on 31st December 2017 valued Rs 74,000