From the following balances extracted from the book of M/s Manju Chawla on March 31, 2017. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.

Closing stock was Rs. 2,000.
(a) Interest on drawings @ 7% and interest on capital @ 5%. (b) Land and Machinery is depreciated at 5%.
(c) Interest on investment @ 6%.
(d) Unexpired rent Rs. 100.
(e) Charge 5% depreciation on furniture.

Answer

Gross profit Rs. 21,900; Net profit Rs. 25,185; Total balance sheet Rs. 71,185

Explanation

N/a