prepare adjusting entries, income statement and balance sheet ( show all computation)

Rs Following is the Trial Balance of Mr. Asif as at 31.12.1993. You are required to prepare Trading and Profit and Loss Account for the year ended 31.12.1993 and a Balance Sheet as on that date after making necessary adjustments: Debit Balances Credit Balances Rs Purchases 60,000 Sales 100,000 Sales Ledger Balances 30,400 Purchases Ledger Balances 23,912 Returns Inward 2,000 Discount Received 1,088 Discount Allowed 2,000 Returns Outward 7,400 Building 44,000 Capital 53,2001 Sundry expenses 2,000 Suspense Account 2,000 Repair expense 2,000 Rental Income 1,000 Wages 4,000 Provision for Bad Debts 2,000 Salaries 6,000 Commission 4,000 Prepaid expense 1,200 Stock-in-Trade (1.1.1993) 20,000 Trade Expenses 4,000 Insurance 400 Cash at Bank 12,600 Deposit with Bank of Punjab 4,000 194,600 194,600 Adjustments: (1) Stock-in-trade on 31.12.1993 was valued at Rs 20,000. (ii) Interest receivable from Bank of Punjab is @ 10% pa. Out of purchases, goods of Rs 4,000 was distributed as free samples (iv) Suspense Account represents a cheque received from Amjad a customer, in settlement of Rs 2,400 due frorr him. The cheque was duly deposited and credited by the Bank. (v) Maintain provision for bad debts @5% on Debtors and provision for discount allowed at 2% of debtors