The following balances have been extracted from the trial balance of M/s Kolkata Ltd. You are required to prepare the trading and profit and loss account on dated March 31, 2006.

Also prepare balance sheet on that date.

Adjustments 1. Outstanding salaries Rs. 100. Rent and taxes Rs. 200, Wages Rs. 100.
2. Unexpired insurance Rs. 500.
3. Commission is received in advances Rs. 50.
4. Interest Rs. 500 is to be received on bank deposits.
5. Interest on bank overdraft Rs. 750.
6. Depreciation on furniture @ 10%.
7. Closing stock Rs. 9,000.
8. Further bad debts Rs. 200 New provision @ 5% on debtors.
9. Apprenticeship premium received in advance Rs. 100.
10. Interest on drawings @ 6%.

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Debit balances Opening stock Furniture Drawings Cash in hand Purchases Sales return Establishment expenses Bad debts Debtors Carriage Bills receivable Bank deposits Wages Trade expenses Bank charges General expenses Salaries Insurance Postage and Telegram Rent, Rates and Taxes Coal, Gas, Water Amount Rs. 6,000 1,200 2,800 3,000 24,000 2,000 4,400 1,000 10,000 1,000 6,000 8.000 1,000 500 400 1,000 2,000 1,500 500 2,000 2,000 80,300 Credit balances Capital Sales Purchases return Bank overdraft Bad debts provision Creditors Commission Bills payable Apprenticeship premium Amount Rs. 20,000 41,300 4,000 4,000 400 5,000 100 5.000 500 80,300