Mrs. Bhavana keeps his books by Single Entry System. You’re required to prepare final accounts of her business for the year ended December 31, 2005.

Her records relating to cash receipts and cash payments for the above period showed the following particulars :

All her sales and purchases were on credit. Provide depreciation on plant and building by 10% and machinery by 5%, make a provision for bad debts by 5%.

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Dr. Receipts Opening balance of cash Further capital Received from debtors Debtors Creditors Stock Plant Summary of Cash Machinery Land & Building Investment Amount Payments Rs. 12,000 Paid to creditors 20.000 Business expenses 1,20,000 Wage paid The following information is also available: Jan. 01, 2005 Rs. 1,52,000 55,000 22,000 35,000 10,00,000 Bhavana's drawings Balance at bank on Dec. 31,2005 Cash in hand 50,000 2,50,000 20,000 Cr. Amount Rs. 53,000 12,000 30,000 15,000 35,000 7,000 1,52,000 Dec. 31, 2005 Rs. 85,000 29,000 70,000 1,00,000 50,000 2,50,000 20,000