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/c for the current year ended March 31 and a Balance sheet as at that date.

Particulars Amt (Rs.) Capital introduced on April 1 47,000 Drawings during the year 5,000 Working capital (Current assets less Current liabilities) as March 31 23,000 Depreciation of fixed assets (@ 10% p.a. on cost 3,000 Ratio of annual sales to year end values of fixed assets plus working capital 2:1 Ratio of current assets to current liabilities at the year end 2:1 Ratio of liquid assets (cash plus debtors) to current liabilities on March 31 5:4 Debtors at the year end as per cent of annual sales 12 General expenses (excluding depreciation) as per cent of annual sales 20

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.