The following trial balance is extracted from the books of a merchant on 31/12/1989

Particulars

Debit

Credit

Furniture and Fittings

640

Motor vehicles

6250

Buildings

7500

Capital

12500

Bad debts

125

Provision for bad debts

200

Sundry debtors and creditors

3800

2500

Stock on Jan 1, 1989

3460

Purchases and Sales

5475

15450

Bank overdraft

2850

Sales and Purchase returns

200

125

Advertising

450

Interest

118

Commission

375

Cash

650

Taxes and Insurance

1250

General expenses

782

Salaries

3300

34000

34000

The following adjustments are to be made:

a) Stock in hand on 31^stDecember 1989 Rs 3250.

b) Depreciate buildings @ 5%, furniture and fittings @ 10%, and motor vehicles @ 20%.

c) Rs 85 is due for interest on bank overdraft

d) Salaries Rs 300 and taxes Rs 120 are outstanding

e) Insurance amounting to Rs 100 is prepaid

f) One-third of the commission received is in respect of work to be done next year.

g) Write off a further Rs 100 as bad debts and provision for bad debts is to be made at 5% on sundry debtors.

h) Purchases included purchase of furniture Rs 200 on January 1, 1989.