6. Given below is the Trial Balance of M/s. Seeta and Geeta as on 31st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet on that date.
Adjustments:
1) Stock on hand on 31st March, 2010 was valued at Rs. 80,000.
2) Goods costing Rs. 16,000 destroyed by fire and Insurance company admitted a claim of Rs. 13,000.
3) Provide for outstanding expenses: Salaries Rs. 3,000, Wages Rs. 2,400.
4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.
5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.
6) Legal charges paid in advance paid in advance Rs. 1,200. 7) Provide interest on capital at 8%.
