The following is the balances as on 31.03.

1995 extracted from the books of Gavaskar

business under the name Gavaskar ltd.
Particulars Dr Cr
Rs Rs
Cash in hand 1,400
Cash at Bank 2,600
Sundry Debtors 86,000
Stock as on 01.04.1994 62,000
Furniture & Fixtures 21,400
Office Equipment 16,000
Buildings 60,000
Motor Car 20,000
Sundry Creditors 43,000
Loan from Ananth 30,000
Reserve for Bad Debts 3,000
Purchase 140,000
Purchase Return 2,600
Sales 230,000
Sales Return 4,200
Salaries 11,000
Rent for godown 5,500
Interest on loan from Ananth 2,700
Rates and Taxes 2,100
Discount allowed to debtors 2,400
Discount received from creditors 1,600
Freight on purchases 1,200
Carriage outwards 2,000
Drawings 12,000
Printing & Stationery 1,800
Electric Charges 2,200
Insurance Premium 5,500
General Office Expenses 3,000
Bad Debts 2,000
Bank Charges 1,600
Motor Car Expenses 3,600
Capital Account 162,000

Prepare Trading and Profit & Loss Account for the year ended 31st March, 1995 and the
Balance Sheet as at that date after making provisions for the following:
1. Depreciate
a. Buildings used for Business by 5%
 b. Furniture and Fixtures by 10% - one steel table purchased during the year for
Rs 1,400 was sold for same price but the sale proceeds were wrongly credited
to sales account.
c. Office Equipment by 15% - Purchases of a typewriter during the year for Rs
4,000 has been wrongly debited to purchases.
d. Motor Car by 20%
2. Value of stock at the close of the year was Rs 44,000
3. One month rent for godown is outstanding
4. One month salary is outstanding
5. Interest on loan from Ananth is payable at 12% p.a. This loan was taken on
01.05.1994
6. Reserve for Bad debts is to be maintained at 5% of sundry Debtors
7. Insurance premium includes Rs 4,000 paid towards proprietors life Insurance Policy
and the balance of the insurance charges cover the period from 01.04.1994 to
30.06.1995
8. Half of the buildings are used for residential purposes of Gavaskar