Z Ltd purchased a retail store and commenced business on April 1. From the following information, you are required to prepare in as much details as possible, a Trading and Profit & Loss A/cfor the current year ended March 31 and a Balance sheet as at that date.

ParticularsAmt (Rs.)Capital introduced on April 147,000Drawings during the year5,000Working capital (Current assets less Current liabilities) as March 3123,000Depreciation of fixed assets (@ 10% p.a. on cost3,000Ratio of annual sales to year end values of fixed assets plus working capital2:1Ratio of current assets to current liabilities at the year end2:1Ratio of liquid assets (cash plus debtors) to current liabilities on March 315:4Debtors at the year end as per cent of annual sales12General expenses (excluding depreciation) as per cent of annual sales20

The current assets consist of stocks (which are unchanged throughout the year), debtors and cash.

Stocks are turned over four times during the year. The current liabilities consist only of creditors.