From the following balances of M/* Jyoti Exports, prepare trading and profit and loss account of the year ended March 31, 2006 and balance sheet as on this date.
Closing stock Rs. 20,000
To provision for bad debts is to be maintained at 5 per cent on sundry debtors.
Wages amounting to Rs. 1000 and salary amounting to Rs. 700 are outstanding.
Factory rent prepaid Rs. 200.
Depreciation charges on Plant and Machinery @ 5% and Building @ 10%.
Outstanding insurance Rs. 200.
