Parvez, the promoter of Radiance Architect, had sought your help for the preparation of the financial statements on the basis of the information set out below. He had to also pay a tax of 25% on the profit calculated.

RADIANCE ARCHITECT

In January 2016, Mr Parvez Alam did set himself up as a consulting architect after retiring from a real estate company. While his primary interest was in building institutional complexes, he had advised some wealthy clients on designing their residential homes. Radiance was doing pretty well under the leadership of Parvez but how well was difficult to define in absence of financial statements. Parvez was somewhat allergic to accounting as he felt that it stifled creative and innovative abilities.

In early January 2020, Parvez approached his banker to extend a line of credit to sustain the business growth. The banker asked him to submit his tax return along with the required financial statements, i.e. a profit and loss statement in respect of his operations as well as a balance sheet as at December 31, 2019. Parvez felt that some attempt had to be made to put together a set of accounts to satisfy the banker and tax authorities. He instructed Miss Joshi, the young lady who acted as his secretary, to collect all the necessary details relating to billing made, cash received, expenses incurred, assets held and outstanding amounts due to suppliers and others relevant to the period.

Miss Joshi assembled the following data:

1. Business assets consisted primarily of office furniture and equipment which were acquired on July 1, 2016. It was decided that these assets should be depreciated at the rate of 10% per year on written down value. The acquisition cost of these assets was Rs 3,50,000.
2. There were shares and debentures worth Rs 15, 00,000 at the beginning of the accounting period.
3. Cash balance and inventory at the end of the day on December 31, 2018 were Rs 7,12,000 and Rs 70,000 respectively
4. The office records showed that the following cash had been received during the year ended December 31, 2019.

(a)	Collections relating to bills raised on clients	23,45,000
(b)	Dividends and interest received from stocks and debentures	1,19,000

Parvez was rather happy about the fact that while actual billings during the December 31, 2019 period were Rs 2,079,000 while the cash received from clients was Rs 23, 45,000. Miss Joshi also informed him that some of the clients, who were personal friends, were yet to pay the fees for the bills raised in 2019. The estimates of such uncollectible amounts were Rs 5, 50,000 in respect of billings pertaining to periods prior to 2019.

A thorough analysis of the stubs of used cheque books disclosed that the following payments were made during that period:

Items	Amount in RS
Salaries of architects	10,51,820
Supplies used for prototypes	4,02,850
Rent for Office Premises	1,84,800
Professional association Fees	35,000
Shares purchased	1,68,000
Amount withdrawn by Parvez for personal expenses	5,60,000
Selling, & Administrative Expenses	1,26,000
Total	25,28,470

Ms Joshi found that the following bills were outstanding at the end of 2018 and 2019 respectively:

	Outstanding on 31 December, 2018	Outstanding on 31 December, 2019
Salaries of architects	11,900	17,500
Supplies used for prototypes	57,400	45,150
Rent for Office Premises	14,000	16,800
Selling, & Administrative Expenses	5,600	1750
Total	88,900	81,200

Ms Joshi also informed that the inventory of supplies material as at the end of December 31, 2019 was Rs 1, 10,000.

Prepare financial statements for the same