From the following balances extracted from the books of Raga Ltd. prepare a trading and profit and loss account for the year ended December 31, 2005 and a balance sheet as on that date.

The additional information is as under :

1. Closing stock was valued at the end of the year Rs, 20,000.

2. Depreciation on plant and machinery charged at 5% and land and building at 10%.

3. Discount on debtors at 3%.

4. Make a provision at 5% on debtors for bad debts.

5. Salary outstanding was Rs.100 and Wages prepaid was Rs. 40.

6. The manager is entitled a commission of 5% on net profit after charging such commission.

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Account Title Drawings Land and buildings Plant and machinery Carriage inwards Wages Salary Sales return Bank charges Coal, gas and water Purchases Trade expenses Stock (opening) Cash at bank Rates and taxes Bills receivable Sundry debtors Cash in hand Amount Account Title 20,000 Sales 12,000 Capital 40,000 Discount 100 Apprentice premium 500 Bills payable 2,000 Purchases return 200 200 1,200 1,50,000 3,800 76,800 50,000 870 24,500 54,300 30,000 4,66,470 Amount 2,20,000 1,01,110 1,260 5,230 1,28,870 10,000 4,66,470