The Mafatlal manufacturing company Ltd. Chennai, was registered with anominal capital Rs. 12,00,000 in equity shares of Rs. 10 each. The following is thelist of balances extracted from its books on 31st March 1998.Rs.Rs.Premises6,00,000 Sales8,30,000Stock (1.4.97)1,50,000 6% debentures 5,00,00014,400Profit & Loss A/c (Cr) 29.000FurnitureCails-in-arrears15,030 Bills payable 76,000Plant & Machinery6,60,000 Sundry creditors 1,00,000Interim dividend paid75,000 General reserve 50,000Sundry debtors1,74,000 Provision for doubtfui debts (1.4.97) 7,000Goodwill68,000 Subscribed, calledCash and bank balances53,300 up & paid up capitai 8,00.000urchases3,70,000Preliminary expenses10,000Wages1,69,730General expenses13,670Advertising20,000Freight26,230Salaries29,000Directors' fees11,450Bad debts4,220Debenture interest paid18,00024,92,00024,92,000The following adjustments have to be made:(1) Stock on 31st March 1998 was valued at Rs. 1,90.000Ü) Write off preliminary expenses(ii) Provide for half year's debenture interest.(iv) The provision for doubtful debts on 31st March 1998 should be equal to1% op sales.(v) Directors' fees are outstar.ding to the extent of Rs. 550 and salariesRs. 1,000.(v) Depreciate Plant B Machinery by 5% premises by 2% and write offRs. 2,400 on furniture.(vii) Goods to the value of Rs. 3,000 were distributed as free samples duringthe year But no entry in this respect had been made.You are required to prepare the Statement of Profit & Loss for the year ended31st March 1998 and the Balance Sheet as on the same date.​