Question 1- From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31st December, 2012 and Balance Sheet as on that date: Drawings Stock on 1.1.2012 Purchases and Purchases Returns Cash in Hand Bank Balance Freehold Premises Trade Expenses Printing, Stationery and Advertising Professional Charges Commission Received Investments as on 1st January @ 10% blo Interest on above Sundry Debtors and Creditors Wages Salaries Capital Income Tax Discount Allowed and Received Sales Returns and Sales Bills Receivable/Bills Payable Office Furniture Rent, Rates and Insurance Bad Debts Provision Adjustments: (a) Provide for wages 5,000. (b) Write Off 5% depreciation on freehold premises and 10% on office furniture. (c) Insurance to the extent of 200 relates to 2013. (d) Stock on 31.12.2012 is 5,20,000. (e) Charge interest on capital 5% and on drawings 300. Further bad debts are 1,000. Dr. (R) 10,000 46,000 1,50,200 3,400 22,660 38,600 840 1,640 280 4,000 36,000 25,000 14,000 1,600 6,300 550 3,200 3,050 4,000 Cr.) (g) Provide for doubtful debts @ 5% on sundry debtors. (h) Make provision for discount on debtors and reserve for discount on creditors @ 2%. 600 3,300 200 29,000 1,14,000 670 Total: 3,71,320 3,71,320 4.600 2,08,950 10,000