Q5: XYZ Ltd. With an Authorized Capital of $300,000 divided into 30,000 Shares of @10 each. Company issued 25,000 Shares which are fully paid. Trial Balance of the Company as on 31st December 2019 is given below along-with adjustment: i. Closing Stock is $105,000 ii. Advance Insurance is $300, Outstanding Rent is $600 iii. Depreciation charged @10% on Plant & Machinery and 5% on Furniture & Fixture iv. Debtors of $400 write-off and new provision created of 5% remaining balance of Debtors Requirement: Prepare P&L A/c and Balance Sheet as on 31* December 2019 Particulars Dr. Cr. Sales $400,000 $11,500 Carriage Purchases 260,000 Insurance 3,000 Rent 5,000 250,000 Issues, Subscribed and Paid-up Capital General Expenses 6,900 Debtors 40,000 500 Advertisement Salaries 25,000 Bad Debts 1,600 90,500 Plant & Machinery A/C Equipment 100,000 Furniture & Fixtures 60,000 Profit & Loss A/C 8,000 Provision for Bad Debts 2,400 General Reserves 10,000 Stock (1st January 2019) 45,000 Cash in Hand and at Bank 21,400 $670,400 $670,400