LONG ANSWER TYPE II QUESTION (8 Marks) 32. The following is the trial balance of Mr Chidambram on 31st March, 2013. Particulars Debit Credit Balance (3) Balance (5) Cash in hand 10,800 Cash at bank Purchases/Sales 52,600 8,13,500 19,75,600 Returns 13,600 Wages 10,000 2,09,600 Power 94,600 Carriage on sales 64,000 10% Bank loan 1,00,000 Carriage on purchases 40,800 Stock on 1st April, 2018 1,15,200 Buildings 6,00,000 Freehold land 2,00,000 Machinery 4,00,000 Salaries 3,00,000 Patents 1,50,000 General expenses 60,000 Insurance 12,000 Drawings/Capital 1,04,900 14,20,000 Sundry debtors/creditors 2,90,000 26,000 35,31,600 .35,31,600 Taking into account the following adjustments, prepare trading and profit and loss account and the balance sheet. (i) Stock in hand on 31st March, 2019 is 71,36,000. (ü) Machinery is to be depreciated at the rate of 10% p.a. and patent at the rate of 20% p.a. (iii) Salaries for the month of March, 2019 amounting to 30,000 were unpaid. (iv) Insurance includes a premium of 1,700 for 2019-20. (v) Wages include a sum of 40,000 spent on the erection of a cycle shed for employees and customers. (vi) A provision for doubtful debts is to be created to the extent of 5% on sundry debtors. * (vii) Bank loan was taken on 1st October, 2018. Or