Following balances are taken from the books of Niranjan. Prepare Trading and Profit and
Channel: Doubtnut
Date: 05/04/2020

Following balances are taken from the books of Niranjan. Prepare Trading and Profit and Loss Account and Balance Sheet for the year ended 31st March 2019. Adjustments: (i) Closing Stock Rs 7,50,000. Depreciate Machinary by `10%` and Furniture by `20%`. (iii) Wages Rs 50,000 and salaries Rs 20,000 are outstanding . (iv) Write off Rs 50,000 as further Bad debts and create `5%` Provision for Doubtful Debts. Also create a reserve for discount on Debtors `@ 2%`. (v) Investments were made on 1st July 2018 and no interest has been received so far.