Prepare Trading and Profit & Loss account for the year ended 31st December, 1996 and Balance sheet as on that date from the following Trial Balance of Kaveri and Narmada

Debit Balance	Rs.	Credit Balance	Rs.
Kaveri’s Drawings Narmada’s Drawings Land & Building Plant & Machinery Stock(1.1.1996) Purchases Wages Carriage Outward Carriage Inward Coal Salary Rent, Rates & Taxes Discount Allowed Cash & Bank Balance Sundry Debtors Printing & Stationery Bad Debts Advertisement Sales Return Furniture Bills Receivable	4,000 4,000 21,000 12,600 8,000 12,000 5,000 500 400 1,260 7,500 560 300 5,080 9,000 460 240 1,750 400 1,240 1,600	Kaveri’s Capital Narmada’s Capital Bills Payable Creditors Purchase Returns Sales	12,000 20,000 6,790 14,600 500 43,000
	96,890		96,890

Adjustments:

1.   Closing Stock is valued at Rs. 10,000/- at cost whose market value was Rs. 15,000/-

2.   Provision for doubtful debts should be maintained at 5% on sundry debtors.

3.   Kaveri has withdrawn goods for his personal use Rs. 500 for which no entry is passed.

4.   Fire occurred in the Godown and goods worth Rs. 5, 000 were destroyed, but Insurance Company admitted Claim for Rs. 3, 500.

5.   Rates prepaid Rs. 60.

31940	18740	16870-25370	63630
GROSS PROFIT	NET PROFIT	PARTNERS CAPITAL ACCOUNT BALANCE	BALANCE SHEET TOTAL