Mr. Giri does not keep his books under the double-entry system. The following are his assets and liabilities as on the opening and closing date of 2005.
His Cashbook for the year ended 31.12.05 as follows.
Discount allowed to debtors is Rs. 1,600 and discount allowed by creditors is Rs. 1,300. Bad debts written off is Rs. 400. Provision for bad debts is required at 5%. Depreciation @ 10% is required on furniture. Interest accrued on investments amounts to Rs. 2,200. Prepare Trading and profit and loss A/c and Balance sheet for 2005.
Statement of Affairs as on 01.01.2005
