You are required to prepare the Profit and Loss Account for the year ended
December 31, 2000 and Balance Sheet as at that date. The following
adjustments are to be made:
1. The value of stock on December 31, 2000 was Rs. 12,500.
2. Write off Rs. 250 from office furniture; 10% on plant and machinery
and 20% on motor van.
3. Create a provision of 5% on the sundry debtors for bad debts.
4. Write off 1/5th of the advertising expenses.
5. Partners are entitled to interest on capital @ 5% p.a. and Akash is
entitled to a salary of Rs. 1,800 p.a.