The following balances were extracted from the books of M/s Panchsheel Garments on December 31, 2005.

Prepare the trading and profit and loss account for the year ended December, 31 and a balance sheet as on that date.

(a) Unexpired insurance Rs 1,000.

(b) Salary due but not paid Rs. 1800.

(c) Wages outstanding Rs. 200.

(d) Interest on capital 5%.

(e) Scooter is depreciated @ 5%.

(f) Furniture is depreciated Rs.@ 10%.

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Account Title Opening Stock Purchase Return Inwards Carriage Inwards General Expenses Insurance Scooter Expenses Salary Cash in Hand Scooter Furniture Buildings Debtors Wages Amt. (Rs.) Account Title 16,000 Sales 67,600 Return Outwards 4,600 Discount 1,400 Bank Overdraft 2,400 Commission 4,000 Creditors 200 Capital 8,800 4,000 8,000 5, 200 65,000 6,000 1,200 1,94,400 Amt. (Rs.) 1, 12,000 3, 200 1,400 10,000 1,800 16, 000 50,000 1,94, 400