The following balances were extracted from the books of Shri R. Lal on March 31, 2017:

Prepare the trading and profit and loss account and a balance sheet as on March 31, 2017 after keeping in view the following adjustments :
(i) Depreciate old building by Rs. 625 and addition to building at 2% and office furniture at 5%.
(ii) Write-off further bad debts Rs. 570.
(iii) Increase the bad debts reserve to 6% of debtors.
(iv) On March 31, 2017 Rs. 570 are outstanding for salary.
(v) Rent receivable Rs. 200 on March 31, 2017.
(vi) Interest on capital at 5% to be charged.
(vii) Unexpired insurance Rs. 240.
(viii) Stock was valued at Rs. 14,290 on March 31, 2017.

Explanation

Books of Shri R. Lal
Trading and Profit and Loss Account
for the year ended March 31, 2017

Balance Sheet as at March 31, 2017