Prepare Trading and Profit & Loss account for the year ended 31st December, 1996 and Balance sheet as on that date from the following Trial Balance of Kaveri and Narmada


Debit Balance
Rs.
Credit Balance
Rs.
Kaveri’s Drawings
Narmada’s Drawings
Land & Building
Plant & Machinery
Stock(1.1.1996)
Purchases
Wages
Carriage Outward
Carriage Inward
Coal
Salary
Rent, Rates & Taxes
Discount Allowed
Cash & Bank Balance
Sundry Debtors
Printing & Stationery
Bad Debts
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Sales Return
Furniture
Bills Receivable
4,000
4,000
21,000
12,600
8,000
12,000
5,000
500
400
1,260
7,500
560
300
5,080
9,000
460
240
1,750
400
1,240
1,600
Kaveri’s Capital
Narmada’s Capital
Bills Payable
Creditors
Purchase Returns
Sales
12,000
20,000
6,790
14,600
500
43,000
96,890
96,890

Adjustments:
1.   Closing Stock is valued at Rs. 10,000/- at cost whose market value was Rs. 15,000/-
2.   Provision for doubtful debts should be maintained at 5% on sundry debtors.
3.   Kaveri has withdrawn goods for his personal use Rs. 500 for which no entry is passed.
4.   Fire occurred in the Godown and goods worth Rs. 5, 000 were destroyed, but Insurance Company admitted Claim for Rs. 3, 500.
5.   Rates prepaid Rs. 60.

31940
18740
16870-25370
63630
GROSS PROFIT
NET PROFIT
PARTNERS CAPITAL ACCOUNT BALANCE
BALANCE SHEET TOTAL