Following balances have been extracted from the trial balance of M/s Keshav Electronics Ltd. You are required to prepare the trading and profit and loss account and a balance sheet as on December 31, 2005.
The following additional information is available :
1. Stock on December 31,2005 was Rs. 15,000.
2. Depreciation is to be charges on buildings at 5% and motor van at 10%.
3. Provision for doubtful debts is to be maintained at 5% on Sundry Debtors.
4. Unexpired insurance was Rs. 300.
5. The manager is entitled to a commission @ 5% on net profit before changing such commission.
