Pankaj and Bindas are partners sharing profits in the ratio of their capital. Their Trial Balance as on 31.03.1997 is as under.

Trial Balance as on 31.3.1997 is as under

Debit Balance	Amount	Credit Balance	Amount
Land and Building Plant and  Machinery Purchases Wages Opening Stock Carriage Outward Sundry Debtors Interest on Loan Prepaid taxes Salary Commission Loss by fire Travelling Expenses Electricity Pankaj’s Drawings Bindas’s Drawings Cash on hand Sales Returns	1,00,000 30,000 1,20,000 3,500 10,000 400 25,000 250 200 4,500 700 2,000 3.400 650 2,000 3,000 10,000 2,000	Pankaj’s Capital Bindas’s Capital Bills Payable Creditors Outstanding commission 10% Loan (taken on 1.7.96) Sales Discount Commission Reserve for bad debts General Reserve	30,000 50,000 6,000 12,000 500 10,000 2,00,000 1,100 4,000 3,000 1,000
	3,17,600		3,17,600

Prepare Trading and Profit and loss A/c for the year ended 31^st March 1997 and the Balance sheet as on that date after taking into account the following adjustments.

1.   Closing stock cost price Rs. 20,000 and Market price is less than the cost price by 5000.

2.   Goods distributed as free samples Rs. 1,000.

3.   Purchase returns of Rs. 2,000 on 30^th March, 1997 have not been recorded in the books.

4.   Wages included Rs. 1,000 paid for installation of Plant and Machinery.

5.   Bills payable include a dishonoured bill of Rs. 1,000

83500	78200	57325-95875	181200
GROSS PROFIT	NET PROFIT	PARTNERS CAPITAL ACCOUNT BALANCE	BALANCE SHEET TOTAL