The following balances have been extracted from the trial of M/s Haryana Chemical Ltd. You are required to prepare a trading and profit and loss account and balance sheet as on December 31, 2010 from the given information Account TitleAmt. (Rs.)Account TitleAmt.(Rs)Opening Stock 50,000Sales3,50,000Purchase1,25,500Purchase Return 2,500Sales Return 2,000Creditors 25,000Cash in Hand 21,200Rent 5,000Cash at Bank 12,000Interest 2,000Carriage 100Bills Payable1,71,700Freehold Land3,20,000Capital3,00,000Patents1,20,000General Expenses 2,000Sundry Debtors 32,500Building 86,000Machinery 34,500Insurance 12,400Drawings 10,000Motor Vehicle 10,500Bad Debts 2,000Light and Water 1,200Trade Expenses 2,000Power 3,900Salary and Wages 5,400Loan 15%(1.9.2010) 3,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,56,200––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯8,56,200–––––––––––––––––––– Adjustments 1. Closing stock was valued at the end of the year Rs. 40,000. 2. Salary amounting Rs. 500 and trade expenses Rs. 300 are due. 3. Depreciation charged on building and machinery are 4% and 5% respectively. 4. Make a provision of 5% on sundry debtors.