Question - 11

Prepare Trading and profit and Loss Account of Rao Bros. for the year ended 31st Dec., 2000 from the given balance of accounts.

Sales Rs. 85,000
Purchases Rs. 50,000 
Opening stock Rs. 27,000
Advertisment Rs. 2,000
Railway fright Rs. 11,000
Rent Rs. 1,000
Bad debts Rs. 1,000
Wages Rs. 1,200
Depreciation Rs. 2,400
Interest (Dr.) Rs. 1,400
Closing stock Rs. 25,000