Clearly show your thought process and reasoning in the answer. Copying from AI systems does not demonstrate your true understanding of the subject and will be downvoted.$($a$)$ Mr$.$ Gurmeet runs the retail business and maintain booksunder single entry system. Hehas furnished the following information:BalanceSheetason$31$stMarch,$2022$ Amount$()$Assets: Furniture $60,000$Stock $1,15,000$TradeReceivables $65,000$CashatBank $1,05,000$CashinHand $8,000$Total $3,53,000$Liabilities: Gurmeet'sCapitalA$/$c $3,08,000$TradePayables $45,000$Total $3,53,000($i$)$ Goodsareinvariablysoldtoearnagrossprofitof$20\%$oncost.$($ii$)$ Depreciationisprovidedonfurniture@$10\%$p$.$a$.$ondiminishingbalance.$($iii$)$ Paymentforpurchasesisalwaysmadebycheque.$($iv$)$ Goodsaresoldforcashandcreditboth.Creditcustomersarepaidbychequeonly. $($v$)$ ItispracticeofMr.Gurmeettosendtothebankallcollectionofthemonthatlastdate of each month after paying:Salaries $3,000$p$.$m$.$Officeexpenses $1,800$p$.$m$.$Personalwithdrawals $1,500$p$.$m$.($vi$)$ Analysis of passbook for theyear ending $31$stMarch, $2023$ disclosed the followinginformation: Amount$()$Cashdepositedinbankduringtheyear $2,12,000$Receiptsfromcreditcustomers $12,28,000$Paymenttocreditors $12,15,000$Paymentofinsurancepremium$($foroneyearending$30$thJune, $2023)2,400$MiscellaneousReceipts$-$saleofoldpapers $1,400($vii$)$ Balancesason$31$stMarch, $2023$are: TradeReceivables $17,000$TradePayable $35,000$Stock $90,000($viii$)$ Claim against Mr$.$ Gurmeet for damages of $15,000$ is under dispute. He anticipates defeat in the suit.$($ix$)$ Onphysicalverificationofcashincashboxcarriedon$31$stMarch,$2023$;shortageof$10,000$wasfound.Itwasnoticedthatthecashierabscondedwith$-$theshortageamount. Further, it is not possible to recover cash from cashier.Youarerequiredtoprepare:$($i$)$ TradingandProfitandLossAccountfortheyearending$31$stMarch,$2023$;$($ii$)$ Balancesheetason$31$stMarch,$2023.($Allworkingsshouldformpartoftheanswer$)($b$)$ DiscussDisclosurerequirementsinfollowingcasesasperAS$1.($i$)$ Accountant of A Ltd$.$ charges a probable loss of losing a suit in books of accountsandalsodisclosedthesamefactinfinancialstatements.Theprobabilityoflosingthe suit is $25\%.($ii$)$ Accountant of A Ltd$.$ capitalized all the revenue expenses of repair and maintenance during the year to Plant & Machinery and is also disclosing the same as company policy in financial statements. $($iii$)$ A Ltd$.$ has followed accrual basis of accounting since incorporation. The chief accountant also disclosed this fact in financial statements.$($iv$)$ A Ltd$.$ was providing for after sales expenses @ $2\%$ of sales forcovering expenses during the warranty period. Now A Ltd$.$ observes that actual after sales expenses were much less as compared to provision because of better technology used in manufacturing of the products. Now, the Board of A Ltd$.$ decides to account for these expenses as and when they occur. Sales during the period are $`50$ crores.