Reference no: EM13528257

Mr. Shewag carries on a retail business and his Trial Balance on Mar 31, 2009 is as follows:

Prepare the Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date after taking into consideration the following:

1. Sundry Debtors include an item of Rs 500 for goods supplied to the proprietor and on item of Rs 1,200 due from a customer who has become insolvent.
2. Provision for doubtful debts is to be maintained at 5% of the Sundry Debtors.
3. One-fifth of alternations to the shop is to be written off.
4. Goods of the value of Rs 2,000 have been destroyed by fire and the insurance company had admitted the claim for Rs 1,400 only.
5. Bills receivable include a dishonored promissory note for Rs 5,300.
6. Stock at the end was Rs 1,21,040.
7. An intimation from the bank that a customer's cheque for Rs 2,000 had been dishonored is still to be entered in the books.