Trial Balance as on 31st March 2015:

| Particulars | Debit (Rs.) | Credit (Rs.) |
| --- | --- | --- |
| Capital | 1,50,000 | - |
| Furniture | 25,000 | - |
| Purchases | 2,80,000 | - |
| Sales | - | 4,50,000 |
| Wages | 40,000 | - |
| Salaries | 60,000 | - |
| Rent | 20,000 | - |
| Carriage Inwards | 8,000 | - |
| Carriage Outwards | - | 12,000 |
| Advertising | 10,000 | - |
| Interest | 5,000 | - |
| Discount Allowed | 6,000 | - |
| Discount Received | - | 4,000 |
| Bad Debts | 8,000 | - |
| Returns Inward | 10,000 | - |
| Returns Outward | - | 12,000 |
| Stock (01.04.2014) | 60,000 | - |
| Debtors | 90,000 | - |
| Creditors | - | 70,000 |
| Bank Overdraft | - | 20,000 |
| Cash in Hand | 5,000 | - |
| Sales Tax | - | 16,000 |
| --- | --- | --- |
| Total | 5,37,000 | 5,37,000 |

Additional Information:

1. Stock on 31st March 2015 was valued at Rs. 80,000.
2. Depreciate furniture by 10%.
3. Outstanding salary amounted to Rs. 6,000.
4. Provide interest on capital at 10% p.a.
5. Bad debts amounted to Rs. 5,000 and create a provision for doubtful debts at 5% on debtors.

Trading Account for the year ended 31st March 2015:

| Particulars | Amount (Rs.) |
| --- | --- |
| Opening Stock | 60,000 |
| Add: Purchases | 2,80,000 |
| Less: Returns Outward | 12,000 |
| Carriage Inwards | 8,000 |
| --- | --- |
| Gross Profit c/d | 3,18,000 |
| --- | --- |
| Total | 3,66,000 |
| --- | --- |
| Less: Closing Stock | 80,000 |
| --- | --- |
| Cost of Goods Sold | 2,86,000 |

Profit and Loss Account for the year ended 31st March 2015:

| Particulars | Amount (Rs.) |
| --- | --- |
| Gross Profit b/d | 3,18,000 |
| Add: Discount Received | 4,000 |
| Less: Wages | 40,000 |
| Salaries | 60,000 |
| Rent | 20,000 |
| Carriage Outwards | 12,000 |
| Advertising | 10,000 |
| Depreciation | 2,500 |
| Interest on Capital | 15,000 |
| Provision for Doubtful Debts | 4,500 |
| Bad Debts | 5,000 |
| --- | --- |
| Net Profit