A merchant keeps incomplete records. During 2010 the analysis of his cash book was as under: Rs. Rs.

A merchant keeps incomplete records. During 2010 the analysis of his cash book was as under:
Rs. Rs.
Receipts from Debtors 4,000 Bank overdraft (1-1-2010) 600
Additional Capital Introduced Payments to Creditors 2,700
on 1-9-2010 300 General Expenses 900
Loan from C on 1-7 - 2010 Salaries 300
@ 6% interest p.a. 1,500 Drawings 400
Bank Balance (31-12-2010) 900
5,800 5,800
On 1st January, 2010 the following balances were recorded: Building Rs. 2,500; Stock Rs. 1,800;
Debtors Rs 5,300 and Creditors Rs. 1,500
The Balances on 31st Dec. 2010 were: Debtors Rs. 6,000; Building Rs. 2,500; Creditors Rs 1,900
and Stock Rs. 2,600.
Allow 5% depreciation on Building. Provide interest on C’s loan for six months. Prepare trading,
Profit and Loss Account and Balance Sheet on 31-12-2010. (20)
5. (a) What do you mean by Income & Expenditure Acc