Prepare a trading and profit and loss account for the year ending March 31, 2017. from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet at the end of the year.

Adjustments
1. Commission received in advance Rs. 1,000.
2. Rent receivable Rs. 2,000.
3. Salary outstanding Rs. 1,000 and insurance prepaid Rs. 800.
4. Further bad debts Rs. 1,000 and provision for doubtful debts @ 5% on debtors and discount on debtors @ 2%.
5. Closing stock Rs. 32,000.
6. Depreciation on building @ 6% p.a.

Answer

Gross loss Rs. 17,000; Net loss Rs. 43, 189; Total balance Sheet Rs. 2,83,611

Explanation

N/a