Reference no: EM13684710

From the following information prepare a trading and loss account for,mr xyz capital $228,800,mr xyz drawings 13,200,plant and machinery 99,000,freehold property 66,000,purchases 110,000,return outwards 1,100,salaries 13,200,office expenses 2,750,discount 5,500,sundry debtors 29,260,loan to mr krish@10% p.a,balance on 1.4.2007,cash at bank 29,260,bills payable 5,500,stock 1.4.2007 38,500,wages 35,200,sundry creditors 44,000,postage and telegrams 1,540,insurance 1,760,gas and fuel 2,970,bad debts 660,office rent 2,860,loose tools 2,900,factory lightining1,100,provision for doubtful debts 880,interest on loan to mr krish 1,100,cash in hand 2,640,sales 231,440.adjustments stock on 31 march 2008 was valued at 72,600,a new machine was installed during the year costing 15,400 but it is not recorded in the book as payment was made for it.Wages 1,100 paid for its erection has been debited to the wages account.Depreciate plant and machine by 33.33%,furniture by 10%,freehold property by 6%,loose tools were valued at 1.760 are bad and should be written off.Maintain a provision of 5% on sundry debtors for doubtful debts.The manager is entitled to a commision of 10% of the net profits after charging such commission