Hi, I have a question and I hope anyone could answer it:
From the following balances extracted from the books of Raga Ltd. prepare a trading and profit and loss account for the year ended December 31, 2011, and a balance sheet as on that date.
The additional information is as under
1. The closing stock was valued at the end of the year 20,000.
2. Depreciation on plant and machinery charged @ 5% and land and building @ 10%.
3. Discount on debtors @ 3%.
4. Make a provision @ 5% on debtors for bad debts.
5. Salary outstanding was? 100 and wages prepaid was? 40.
6. The manager is entitled a commission of 5% on net profit after charging such commission.
Balance sheet as on 31/12/05