Following is the Trial Balance of Atam Prakash as on 31st March, 2018:
Adjustments:
(i) Stock on 31st March, 2018 was valued at Rs. 5,30,000.
(ii) Salaries have been paid so far for 11 months only.
(iii) Unexpired insurance is Rs. 1,000.
(iv) Commission earned but not yet received amounting to Rs. 1,220 plus IGST @ 12% is to be recorded in books of account.
(v) Provision for Doubtful Debts is to be bought up 3% of Sundry Debtors.
(vi) Manager is to be allowed a commission of 10% on net profits after charging such commission.
(vii) Furniture is depreciated @ 10% p.a.
(viii) Only one-fourth of advertisement expenses are to be written off.
Prepare Trading and Profit and Loss Account for the year ended 31st March, 2018 and Balance Sheet as on that date.
