The following trial balance us taken out from the books of Rashid and sons as on 31st

December, 2019.

Dr. Cr.

Rs. Rs.

Plant and machinery 100,000

Opening stock 60,000

Purchases 160000

Building 170,000

Carriage inwards 3,400

Carriage outward 5000

Wages 32,000

sundry debtors 100,000

Salaries 24,000

Furniture 36,000

Trade expenses 12,000

Discount on sales 1,900

Advertisement 5,000

Bad debts 1,800

Drawings 10,000

Bills receivable 50,000

Insurance 4,400

Bank balance 20,000

Sales 480,000

Interest received 2000

Sundry creditors 40,000

Bank loan 100,000

Discount on purchases 2,000

Capital 171,500

795,500 795,500

Prepare the Income statement and Balance sheet for year ended 31st December, 2019. Closing

stock is valued at Rs. 90,000.