Sanjiv Sondhi started business on 1st April, 2017 with a capital of Rs. 3,00,000. Following Trial Balance was drawn up from his books at t he end of the year:
Value of Stock as on 31st March, 2018 was Rs. 2,60,000. You are required to prepare his Trading and Profit and Loss Account for the year ended 31st March 2018 and Balance Sheet as at that date after taking the following facts into account:
(a) Plant and Fixtures are to be depreciated by 10%.
(b) Salaries outstanding on 31st March, 2018 amounted to Rs. 35,000.
(c) Accrued Interest on investment amounted to Rs. 7,500.
(d) Rs. 5,000 are Bad Debts and a Provision for Doubtful Debts is to be created at 5% of the balance of debtors.
