The following is the trial balance of Agrawal Udyog as on 31st March, 2005. Trial Balance of Agrawal Udyog Particulars Cash in Hand as on 31st March 2005 Credit Cash at Bank Debit 5,400 Freehold Land Accounts Receivable 26,300 1,45,000 Building 1,00,000 Machinery 3,20,000 Patents Office Equipment 1,63,000 37,000 Accounts Payable 75,000 63,000 Capital 6,20,000 Drawings 52,450 Opening Stock - Raw Material 20,100 - Work in Progress 10,400 - Finished Goods 27,100 Purchases - Raw Material 3,81,500 - Consumables 25,250 Sales Return Inward Return Outward 9,87,800 6,800 5,000 Wages 84,800 Fuel and power 47,300 Carriage on - Sales 20.400 - Purchases 32,000 Salaries Office 65.000 85,000 - Factory General Expenses 30,000 Insurance - Factory 4,000 - Office 2,000 90,000 Rent 17,65,800 17,65,800 60 Taking into account the following adjustments, prepare the Profit & Loss Account for 2004-05 and the Balance Sheet as on 31st March, 2005. 1) Inventory of raw material on hand on 31st March 2005 is Rs.21,300 Work-in-progress is Rs.14,300 and finished goods Rs.32,400 2) Machinery is to be depreciated @ 10% and office equipment @ 15%. Patents are to be amortized @ 20% 3) Salaries outstanding for March 2005 is Rs.10,000 for factory and Rs.5,000 for office. 4) Insurance includes a premium of Rs.1,700 on a policy expiring on 30th September 2005, relating to office. 5) Bad debts to be written off are Rs.7,250. 6) Rent received in advance Rs. 10,000. 5