Question No. 1 Marks:25 Prepare a Trading and Profit & Loss Account for the year ended 31st December 2017 and a Balance Sheet as at that date of Messrs. Butt Brothers. Rs. Rs. 18,500 Butt Brother's Capital Butt Brother's Drawings 1,500 Furniture 2,600 Cash in hand 2,300 Cash at Bank 6,700 Stock (opening) 9,700 Rent 800 Wages & Salaries 1,300 Bank overdraft 5,000 Purchases & Sales 11,400 26,200 Plant & Machinery 9,600 Debtors & Creditors 6,000 2,400 Carriage Inward 100 Reserve for Bad Debts 500 Returns 200 300 Trade Expenses 700 52,900 52,900 Adjustments: (a) Closing stock was valued at Rs. 2,000 (b) Liability for Wages & Salaries Rs. 200 (c) Rent Prepaid Rs. 200 (d) Furniture and Plant to be depreciated at 10% (e) of the debtors 10% is bad and create a reserve of 5% on debtors for bad and doubtful debts