M/* Soniya Sports Equipment does not keep proper records. From the following information find out profit or loss and also prepare balance sheet for the year ended December 31,2004.
Drawing Rs.5,000 p.m. for personal use. Fresh capital introduce during the year Rs. 1,00,000. A bad debts of Rs. 1,000 and a provision of 5% is to be made on debtors. Outstanding salary Rs. 1,200, prepaid insurance Rs. 350. Depreciation charged on furniture and machine @ 10% p.a.
