The following Trial Balance was extracted from the books of Mr. Gupta as at 31st March, 2023: Stock on 1-4-2022 ₹ 65,000 Purchases ₹ 7,10,000

The following Trial Balance was extracted from the books of Mr. Gupta as at 31st March, 2023:

Dr. Balances	₹	Cr. Balances	₹
Stock on 1-4-2022	65,000	Capital	2,50,000
Purchases	7,10,000	Rent Received	3,900
Wages	22,000	Loan from Mr. Yadav @ 15% p.a.	20,000
Trade Expenses	5,000	Sales	9,50,000
Freight and Dock Charges	8,000	Discount	600
Travelling Expenses	3,800	Outstanding Wages	2,000
Lighting and Heating (Factory)	7,200	Trade Expenses accrued but not paid	500
Stores Consumed	2,000	Sundry Creditors	80,000
Rent Paid	16,500
Establishment Charges	18,000
Interest on Mr. Yadav’s Loan	1,500
Sundry Debtors	1,42,000
Cash	6,000
Fixed Assets	3,00,000

Adjustments:- (i) Goods costing ₹ 20,000 were purchased and included into stock but not entry was passed to record the purchase. (ii) Loan from Mr. Yadav was taken on 1st June, 2022. (iii) Sundry Debtors include an amount of ₹ 2,000 due from a customer who has become insolvent and nothing is recoverable from his estate. (iv) Create a provision of 5% for Doubtful Debts and 2% for discount on Debtors. (v) Three months lighting and heating bill due but not paid ₹ 3,000. (vi) Rent is paid for 11 months but is received for 13 months. (vii) Stock amounted to ₹ 90,000 on 31st March, 2023. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that date. [Ans. G.P., ₹ 2,02,800; N.P. ₹ 1,48,040; Balance Sheet Total ₹ 5,26,340.] Solution:-