Question - 19

Anad who does not keep complete set of books on double entry system asks you to prepare a trading and profit and loss accounts of his business for the year ended 31st March 2000 and a balance sheet as on that date. the following informations are available:

(A) Summary of cash book : 
Bank overdraft on 1st April 1999 Rs. 12,000
Received from debtors Rs. 75,000
Payment to Creditors Rs. 44,000
Cash purchases Rs. 12,500
Cash sales Rs. 20,000
Interest on overdraft Rs. 500
Salary Rs. 9,000
General exp. Rs. 750
Rates & Taxes Rs. 12,000
Personal drawings Rs. 1,000 
(B) Assets and liabilities :

                                                          1st April, 1999                        31st March, 2000
Stock                                                      27,000                                     40,000
Creditors                                                24,000                                     20,000
Debtors                                                  60,000                                     67,000
Business premises                                 45,000                                     45,000
Furniture                                                 3,000                                        3,000
Bills Receivable                                          -                                           3,000
Bills Payable                                               -                                           4,000
Expenses outstanding                                 -                                              400

(C) other informations :
  1. Make a provision of Rs. 4,800 for doubtful debts.
  2. He had allowed Rs. 4,500 as discount to his debtors and had received Rs. 3,000 as discount from his creditors.
  3. Charge depreciation @ 5% on furniture and business premises.
  4. Allow 5% per annum interest on capital.