Following are the balances extracted from the books Naraina on 31st March, 2019:

Additional Information :
(i) Closing Stock at cost as on 31st March, 2019 was Rs 2,00,600, whereas its Net Realisable Value (Market value) was Rs 2,05,000.
(ii) Depreciate : Business Premises by Rs 3,000 and Furniture and Fittings by Rs 2,500.
(iii) Make a provision of `5%` on debtors for doubtful debts.
(iv) Carry forward Rs 2,000 for unexpeired insurance.
(v) Outstanding salary was Rs 15,000.

Answer

Prepare Trading and Profit and Loss Accounts for the year and Balance Sheet as at that date.
Gross Profit -Rs 3,42,600; Net Profit -Rs 1,49,100; Balance Sheet Total - Rs 5,94,100.

Explanation

1. Closing Stock will be taken at Rs 2,00,600, being lower of Cost and Net Realisable Value (Market Value) Following the Prudence Concept.
2. Rs 2,000 out of Insurance Expenses are Prepaid Insurance.