Question - 18

The books of M/s R.K. Stores disclose the following position on 1st Jan., 2000 :

      Liabilities                      Amount                     Assets                       Amount

Creditors                               5,625               Furniture                            1,500
Capital                                  6,000               Debtors                               6,750
                                                                      Stock                                  3,000
                                                                     Cash at bank                          375
                                              11,625                                                        11,625

During the year 2000 the records were incomplete but on analysis of the bank transactions revealed the followings facts:

Receipts from debtors Rs. 26,250
Drawings for personal use Rs. 4,500
Payment to creditors Rs. 16,500
Payment for salaries Rs. 2,250
Payment for rent Rs. 1,125
Miscellaneous exp. Rs. 300
Balance on 31st Dec., 2000:
Total creditors Rs. 7,125
Total creditors Rs. 3,800
Balance at bank Rs. 1,950

No inventory of stock was taken on this day but it was started that gross profit at a uniform rate 40% on turnover had been realized during the year.
Prepare trading and profit and loss accounts for the year ended on 31st Dec., 2000 and Balance sheet as on date.