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musu LIID The following balances as at 31.12.2002 have been extracted from the books of David, the proprietor of a departmental store: Wages and Salaries Rs 1.42,500; Maintenance Rs 12,360; Rent Rs 27.050; Advertising Rs 15.000; Sundry Debtos Rs 41.900: Sundry Creditors Rs 16,800; Provision for doubtful debts Rs 5,000; Investments Rs 50,000; Furniture Rs 46.500 Cash Rs 21.550; Capital Account Rs 2,00,000; Current Account Rs 880 (Cr.); Drawings Rs 75,120. The records relating to the stocks are: (all figures in rupees) Stock on 1.1.2002 Purchases Purchase Returns Stock on 31.12.2002 Dept. 10,700 94,600 900 21,000 Dept. Y 68,000 2,20,980 2,200 61,600 Additional information: (1) Department X sells articles for Rs 40 each which is equivalent to 80% above cost price, while department Y sells articles for Rs 60 each which is equivalent to double the cost price. (2) Write off bad debts Rs 3,300 and adjust the provision for doubtful debts to 10% of the remaining outstanding debtors. These adjustments should be apportioned equally between department X and department Y. (3) Provide Rs 4,000 investment income due to be received. (4) Provide Rs 1,150 rent due to be paid. (5) Depreciate furniture by 10%. (6) All general expenses should be apportioned between department X and department Y on the basis of the number You are required to prepare Departmental Trading and Profit and Loss Account for the year ended 31.12.2002 and 1 Balance Sheet as on that date

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