The following balances has been extracted from the trial of M/s Runway shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on December 31, 2005.
Adjustments
1. Further bad debts t 1,000. Discount on debtors Rs. 500 and make a provision on debtors @ 5%.
2. Interest received on investment @5%.
3. Wages and interest outstanding Rs. 100 and Rs. 200 respectively.
4. Depreciation charged on motor car @ 5% p.a.
5. Closing stock Rs. 32,500.
