Mustration 4 Prepare the trading profit and loss account of M/s Mohit Traders as on 31 March 2006 and draw necessary Journal entries and balance sheet as on that date : Debit Balances Amount Credit Balances Amount Rs. Rs. Opening stock 24.000 Sales 4.00,000 Purchases 1.60.000 Return outwards 2.000 Cash in hand 16.000 Capital 1.50.000 Cash at bank 32.000 Creditors 64.000 Return inwards 4.000 Bills payable 20.000 Wages 22.000 Commission received 4.000 Fuel and Power 18.000 Carriage inwards 6.000 Insurance 8.000 Buildings 1.00.000 Plant 80.000 Patents 30.000 Salaries 28,000 Furniture 12.000 Drawings 18.000 Rent 2.000 Debtors 80,000 6.40.000 6,40,000 c5 Adjustments (a) Salaries outstanding (b) Wages outstanding (c) Commission is accrued (d) Depreciation on building 5% and plant 39 (e) Insurance paid in advance Closing stock Rs. 12.000 6,000 2.400 700 12.000