Write off a further sum of rs 200 as bad debts from the

Question

The following Trial Balance is extracted from the books of Shri Gulsar on Mar 31, 2009

Particulars	Dr. (Rs)	Cr. (Rs)
Capital	-	25,000
Furniture and Fittings	1,280	-
Motor cycle	12,500	-
Building	15,000	-
Bad Debts	250	-
Provision for Doubtful Debts	-	400
Sundry Debtors/Creditors	7,600	5,000
Stock (as on Apr 1, 2008)	6,920	-
Purchases and Sales	10,950	30,900
Bank Overdraft	-	5,700
Returns	400	250
Interest on Bank Overdraft	236	-
Advertising	900	-
Commission	-	750
Cash	1,300	-
Taxes and Insurance Premium	1,564	-
General Expenses	2,500	-
Salaries	6,600	-
	68,000	68,000

Adjustments

1. Stock on hand (as on Mar 31, 2009) Rs 6,500
2. Depreciate building @ 5% p.a.; furniture @ 10% p.a.; motor cycle @ 20% p.a.
3. Rs 170 is due for interest on bank overdraft
4. Salaries Rs 600 and taxes Rs 400 are outstanding
5. Insurance premium Rs 200 is prepaid
6. One-third of the commission received is in respect of work to be done next year
7. Write off a further sum of Rs 200 as bad debts from the debtors
8. Create provision for doubtful debts @ 5% on debtors, you are required to prepare a Trading and Profit and Loss Account for the year ended on Mar 31, 2009 and a Balance Sheet on that date