Mr. Gurmeet runs the retail business and maintain books under single entry system. He has furnished the following information: Balance Sheet as on 31st March, 2022 Assets:Amount (₹) Furniture60,000 Stock1,15,000 Trade Receivables65,000 Cash at Bank1,05,000 Cash in Hand8,000 Total3,53,000 Liabilities: Gurmeet's Capital A/c3,08,000 Trade Payables45,000 Total3,53,000 (i) Goods are invariably sold to earn a gross profit of 20% on cost. (ii) Depreciation is provided on furniture @ 10% p.a. on diminishing balance. (iii) Payment for purchases is always made by cheque. (iv) Goods are sold for cash and credit both. Credit customers are paid by cheque only. (v) It is practice of Mr. Gurmeet to send to the bank all collection of the month at last date of each month after paying: Salaries ₹3,000 p.m. Office expenses ₹1,800 p.m. Personal withdrawals ₹1,500 p.m. (vi) Analysis of passbook for the year ending 31st March, 2023 disclosed the following information: Amount (₹) Cash deposited in bank during the year2,12,000 Receipts from credit customers12,28,000 Payment to creditors12,15,000 Payment of insurance premium (for one year ending 30th June, 2023)2,400 Miscellaneous Receipts - sale of old papers1,400 (vii) Balances as on 31st March, 2023 are: Trade Receivables ₹17,000 Trade Payable ₹35,000 Stock ₹90,000 (viii) Claim against Mr. Gurmeet for damages of ₹15,000 is under dispute. He anticipates defeat in the suit. (ix) On physical verification of cash in cash box carried on 31st March, 2023; shortage of ₹10,000 was found. It was noticed that the cashier absconded with-the shortage amount. Further, it is not possible to recover cash from cashier. You are required to prepare: (i) Trading and Profit and Loss Account for the year ending 31st March, 2023; (ii) Balance sheet as on 31st March, 2023. (All workings should form part of the answer)

Discuss Disclosure requirements in following cases as per AS 1. (i) Accountant of A Ltd. charges a probable loss of losing a suit in books of accounts and also disclosed the same fact in financial statements. The probability of losing the suit is 25%. (ii) Accountant of A Ltd. capitalized all the revenue expenses of repair and maintenance during the year to Plant & Machinery and is also disclosing the same as company policy in financial statements. (iii) A Ltd. has followed accrual basis of accounting since incorporation. The chief accountant also disclosed this fact in financial statements. (iv) A Ltd. was providing for after sales expenses @ 2% of sales for covering expenses during the warranty period. Now A Ltd. observes that actual after sales expenses were much less as compared to provision because of better technology used in manufacturing of the products. Now, the Board of A Ltd. decides to account for these expenses as and when they occur. Sales during the period are ₹50 crores.