From the following information prepare trading and profit and loss account of M/s Indian sports house for the year ending December 31, 2005.
Adjustments
1. Closing stock was Rs. 22,500
2. Provision for bad debts is to be maintained @ 2% on debtors.
3. Depreciation charged on : Furniture and fixture @ 5% plant and machinery @ 6% and motor car @ 10%.
4. A machine of Rs. 15,000 was purchased on July 01,2005.
5. The manager is entitle to a commission of @ 10% of the net profit after charging such commission.
