Read carefully the following case and prepare the answer as required

Bipasha is a good looking, intelligent and smart lady with a pleasant personality in her 20s. She always wanted to do something of her own. Every year she visits places endowed with natural beauty and places of historical interest. Immediately after graduating from IIM-A , she identified tourism as her passion and started the tourism business on 1stJanuary 2018. Under the name and style Bipasha and Co. ( BC) . She arranged a bank loan of Rs 10 lacs under special scheme to support young entrepreneurs. This was 50% of the total capital required by the firm and Bipasha contributed the balance 50%. The rate of interest is 10% p.a to be compounded annually. Interest for years 2018 and 2019 are payable on 1st January 2020. The loan is to repaid 50 equal installment starting from 1st January 2020.

Bipasha works with corporate clients only. Her business model is quite simple. She arranges groups tours for employees of her clients. She has entered into MOU with tourism departments of different state governments. Tourism department allows 20% discount over published rates to Bipasha. She pays 50% in advance for all bookings. The advance is non-refundable in case of cancellation of a trip. Bipasha allows group discount, which varies between 5% and 15% depending upon the size of the group, and collects 50% of the estimated cost at the commencement of the tour. She directly arranges visits to places not covered in tour package.

In addition Bipasha arranges conducted tours jointly with Modern Transport company (MTC) which operate inter-state bus services.

The year 2018 was good year for Bipasha. She earned a modest profit in the first year of operation. She submitted the following Balance sheet as at 31st December 2018 to the bank from which she borrowed money.

Balance sheet of BC as at 31st December 2018

(Amount in Rs)

Liabilities			Assets
Capital		10,50,000	Office Building	10,00,000
Bank loan	10,00,000		Less: Depreciation	50,000	9,50,000
Add: Int accrued but not due	1,00,000	11,00,000	Advance to tourism departments		2,00,000
Trade creditors (amount due to transport co)		50,000	Deposit with electricity co		50,000
			Trade receivables		3,00,000
			Bank		6,50,000
			Cash		50,000
		22,00,000			22,00,000

Cash Book for the year ended 31st December 2019

Receipt	Amount in Rs	Payment	Amount in Rs
To Opening Balance Bank 6,50,000		By Purchase of car	6,00,000
Cash 50,000	7,00,000	By Payments to tourism dept	20,00,000
To realization from customers	35,00,000	By Payments to railways and airlines towards cost of tickets	5,00,000
To Commission received from railways and airlines	50,000	By Tour expenses other than package tours	3,00,000
To Interest received on investment	70,000	By Electricity charges	20,000
To Sale of investment	2,00,000	By Telephone charges	30,000
		By stationery	5,000
		By Salaries and wages	2,45,000
		By Insurance premium	10,000
		By other office expenses	50,000
		By Purchase of Investment	6,00,000
		By closing balance
		Bank	1,10,000
		Cash	50,000
	45,20,000		45,20,000

Bipasha provides you the following information

1. BC purchased car on 1st July 2019

2. BC uses straight line method of depreciation at 5% on Building and 25% p.a on Car

3. Payments to tourism department include payment of advances for booking cancelled subsequently amounting to Rs 50,000

4. Insurance premium was paid on 1st July 2019 to cover risk for one year.

5. Advance with state tourism department on 31st December 2019 was Rs 1,50,000

6. Trade receivable as on 31st December 2019 was Rs 2,00,000

7. The cost of investment sold was Rs 1,50,000

Please prepare a Profit and Loss account ( No trading account required) for the year ended 31st December 2019 and Balance of BC as at that date in the HORIZNTAL FORMAt