Following is the Trial Balance of Bharat on 31st March, 2023:
Plant and Machinery
Furniture and Fittings
Stock on 1st April, 2022
Cash in Hand
Cast at Bank
Provision for Doubtful Debts
Following adjustments are to be made:
(a) Stock on 31st March, 2023 at cost was ₹ 52,000 whereas its net realisable value (Market Value) was ₹ 57,000.
(b) Three months’ factory power bill due but not paid ₹ 300.
(c) 5% depreciation to be written off on furniture.
(d) Write off further Bad Debts ₹ 700.
(e) Provision for Doubtful Debts to be increased to ₹ 3,000 and Provision for Discount on Debtors @ 2% to be made.
(f) During the year, machinery was purchased for ₹ 20,000 but it was debited to the Purchases Account.
You are required to prepare Trading Account, Profit & Loss Account and Balance Sheet.