From the following trial balance of Ram on December 31

st
2004, prepare the final accounts:
DEB! B"#"$%E %RED! B"#"$%E
Drawings &,000 Ban' o(er)raft 2*,000
+ages 1*,*00 nterest on in(estment *,,00
-toc' 12,,00 Bills pa.able 4,&00
#oan to /rishna 4,000 nterest on loan to /rishna 320
Rent *,000 %apital 1,00,000
0eneral e1penses 1,4,0 Doubtful )ebts pro(ision 2*0
in(estments &0,000 -ales 2,30,000
purchases 1,&0,000 -un)r. cre)itors 12,*20
Freight an) carriage 2,100
goo)will 40,000
Bills recei(able &,200
Rates an) ta1es 1,,00
-ales returns 2,100
nsurance 200
%ash in han) 2,*00
-a(ings ban' 1,200
3ostage an) telegram 3,,00
#an) an) buil)ings 2*,000
3lant an) machiner. 10,000
-un)r. )ebtors 1&,*00
3ac'aging charges 400
Ba) )ebts 1,2,0
")4ustments:
15 %losing stoc' as on 31
st
December,2004 was Rs51&,0005
25 0oo)s worth Rs5600 were sent on 2*
th
December as 7sale on appro(al basis8 for
Rs5,105
35 209 of goo)will shoul) be written off5
45 Further, ba) )ebts was estimate) at Rs53*05
*5 ncrease reser(es for ba) an) )oubtful )ebts to the e1tent of Rs51*005
&5 Depreciate lan) an) buil)ing b. 39 an) plant an) machiner. b. 1095
65 0oo)s worth Rs5,00 were )istribute) as free samples5