Hassan started business on January 1, 2013 with a capital of Rs.90000. He kept cash book and a record of his receivable and
payables in a diary. His cash book showed following transactions for the year.
Rs.
Expenses paid 22000
Cash purchases 56000
Cash sales 42000
Payments to creditors 100000
Receipts from debtors 140000
Personal drawings 10000
Purchase of a motor cycle 60000
On December 31, 2013 the stock was valued at Rs.20000. The payables and receivables were Rs.120000 and Rs.110000
respectively. Provide depreciation motor cycle at the rate of 20%. Prepare trading and profit and loss account for the year
ended December 31, 2013 and balance sheet as on date.