Ils. (Cr.)2.The following is the Trial Balance of Mr. Ram Lal as at 31st December, 2006:Rs. (Dr.)86,6903,89,6005,800ParticularsRam Lal's CaptialStock on 1-1-2006Purchases and SalesReturnsFreight and carriageRent and TaxesSalaries and WagesSundry debtors and CreditorsBank loan @ 6% p.a.Bank Interest on loanPrinting and AdvertisingMiscellaneous Income46,8003,21,7008,60018,6005,7009,30024,00014,80020,00090014,6002508,000Cash at Bank1,8004,190Discount5,000Furniture and FittingsGeneral ExpensesInsurance11,4501,3002,330Postage and TelegramsCash in hand380870Traveling ExpensesDrawings40,0005,21,3305,21,330This following adjustmetns should be made:() Included amongst the Debtors is Rs. 3,000 due from Suresh Kumar and included among thecreditors Rs. 1,000 due to him.Provision for Bad and Doubtful Dets be created at 5% and Reserve for Discount @ 2% on SundryDebtors.(iii) Depreciate Furniture and Fittings by 10%.(iv) Personal Purchases amounting to Rs. 600 had been included in the Purchases Day Book,(v) Interst on Bank Loan shall be provided for the whole year.(vi) One quarter of the amount of Printing and Advertising is to be carried forward to next year.(vii) Credit purchase invoice amounting to Rs. 400 had been omitted from the books(viii) Stock on 31st December, 2006 was Rs. 78,600.prepare trading and profit and loss account for the year ended 31st December 2006 and balance sheet as on that date
