The following Trial Balance is the Trial Balance of a Proprietor as on March, 312024. Prepare Trading and Profit & Loss Account for the year…

Trading Account for the year ended 31 st March, 2024 Particulars Details Amount (₹) Particulars Details Amount (₹) To Opening Stock 4,80,000 By Sales 48,00,000 To Purchases 21,35,000 Less: Returns Inwards 93,000 47,07,000 Less: Plant and Machinery included in purchases 3,00,000 By Closing Stock 5,20,000 Less: Returns Outward 55,000 17,80,000 To Wages 15,00,000 To Factory rent 8,000 Add: Outstanding 3,000 11,000 To Gross Profit c/d 14,56,000 52,27,000 52,27,000 Profit and Loss Account for the year ended 31 st March, 2024 Particular Amount (₹) Particular Amount (₹) To Salaries 1,40,000 By Gross profit b/d 14,56,000 To Advertisements 60,000 By Discount Received 37,000 To Insurance 63,000 To General expenses 10,000 To Discount Allowed 65,000 To Provision for doubtful debts (W.N.1) 37,000 To Provision for discount on debtors (W.N.2) 8,400 To Depreciation (W.N.3) 93,300 To Net Profit transferred to Capital a/c 10,16,300 14,93,000 14,93,000 Balance Sheet as at 31 st March, 2024 Liabilities Details Amount (₹) Assets Details Amount (₹) Capital 4,00,000 Plant and Machinery 5,00,000 Add: Net Profit 10,16,300 Add: Additions 3,00,000 Less: Drawings (70, 000) 13,46,300 Less: Dep. (W.N.3) (80, 000) 7,20,000 Bills Payable 56,000 Office furniture 26,000 Sundry Creditors 5,20,000 Less: Dep. (W.N.3) (1, 300) 24,700 Outstanding Factory rent 3,000 Motor Vans 1,20,000 Less: Dep. (W.N.3) (12, 000) 1,08,000 Bills receivables 72,000 Stock in Trade 5,20,000 Sundry Debtors 4,57,000 Less: Further Bad debts (7, 000) Less: Provision for doubtful debts (30, 000) Less: Provision for discount on debtors (W.N.2) (8, 400) 4,11,600 Cash at hand 4,000 Cash in bank 65,000 19,25,300 19,25,300 Working Notes: (1) Provision for Bad and Doubtful Debts Account Particulars ₹ Particulars ₹ To Bad-debts (as per Trial Balance) 25,000 By Balance b/d (as per Trial Balance) 25,000 To Sundry debtors (further bad-debts) 7,000 By P&L A/c (Balancing figure) 37,000 To Balance c/d i.e. provision required at year end 30,000 62,000 62,000 (2) Provision for discount on debtors Debtors as per Trial Balance - 4,57,000 Less: Further bad-debts (7, 000) Less: New provision for Doubtful Debts (30, 000) Debtors before provision for discount - 4,20,000 Provision for discount on debtors @2% ₹ 8,400 (3) Depreciation Plant and Machinery @10% on 8,00,000 (₹ 5,00,000 +3,00,000*)₹ 80,000 Motor Van @10% on 1,20,00012,000 Office Furniture @5% on 26,0001,300 Total - 93,300 *Purchase of a plant and machinery during the year for 3,00,000 which was wrongly debited to purchase now added to Plant and Machinery.