The following balances has been extracted from the trial of M/s Runway Shine Ltd. Prepare a trading and profit and loss account and a balance sheet as on December 31, 2005.

Adjustments 

1. Further bad debts Rs. 1,000. Discount on debtors Rs. 500 and make a provision on debtors @ 5%.

2. Interest received on investment @ 5%.

3. Wages and interest outstanding Rs. 100 and Rs. 200 respectely.

4. Depreciation charged on motor car @ 5% p.a.

5. Closing Stock Rs. 32,500.

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Account Title Purchases Opening stock Return inwards Carriage inwards Cash in hand Cash at bank Wages Printing and Stationery Discount Bad debts Insurance Investment Debtors Bills receivable Postage and Telegraph Commission Interest Repair Lighting Charges Telephone charges Carriage outward Motor car Amount Rs. 1,50,000 50,000 2,000 4,500 77,800 60,800 2,400 4,500 400 1,500 2,500 32,000 53,000 20,000 400 200 1,000 440 500 100 400 25,000 4,89,440 Account Title Sales Return outwards Interest received Discount received Creditors Bill payable Capital Amount Rs. 2,50,000 4,500 3,500 400 1,25,000 6,040 1,00,000 4,89,440