Ltd.3. The following balances has been extracted from the trial of M's Runway shinePrepare a trading and profit and loss account and a balance sheet as on December 31,2005.AmountAmountAccount TitleAccount Title2,50,0004,500PurchasesOpening stockReturn inwardsCarriage inwardsCash in handCash at bankWagesPrinting and stationeryDiscountBad debtsInsuranceInvestmentDebtorsBills receivablePostage and TelegraphCommissionInterestRepairLighting chargesTelephone chargesCarriage outwardMotor car1,50,000 Sales50,000 Return outwards2,000 Interest received4,500 Discount received77,800 Creditors60,800 Bill payable2,400 Capital1,25,0006,0401,00,0004,5001,5002,50032,00053,00020,0004002001,00044050010040025,0004,89,4404,89,440Adjustments1. Further bad debts1,000. Discount on debtors 500 and make a provision ondebtors 5%.2. Interest received on investment 5%.3. wages and interest outstandingて100 and 200 respectively.4. Depreciation charged on motorcar 5% p.a.5. Closing stock 32,500.