To prepare a correct Trial Balance, we need to identify the nature of each account (asset, liability, equity, revenue, expense) and ensure its balance is on the correct side (Debit for assets and expe

• Land and Building: Asset. Correct value from preamble: $\text{Rs } 1,00,000$. Should be Debit.
• Sundry Creditors: Liability. Correct value from preamble: $\text{Rs } 1,00,000$. Should be Credit. (The table shows Creditors $\text{Cr } 1,600$, which is incorrect based on the preamble).
• Stock of Goods (Opening Stock): Asset. Correct value from preamble: $\text{Rs } 40,000$. Should be Debit. (The table shows Opening Stock $\text{Cr } 4,000$, which is incorrect in both value and side).
• Plant (Plant and Machinery): Asset. Correct value from preamble: $\text{Rs } 50,000$. Should be Debit. (The table shows Plant and Machinery $\text{Cr } 4,000$, which is incorrect in both value and side).

Now, let's correct the accounts from the "wrongly prepared" Trial Balance table:

• Bank overdraft: Liability. Table shows $\text{Dr } 2,800$. Correct side is Credit. So, $\text{Cr } 2,800$.
• Cash-in-hand: Asset. Table shows $\text{Cr } 400$. Correct side is Debit. So, $\text{Dr } 400$.
• Purchases Returns: Contra-expense (reduces purchases). Table shows $\text{Dr } 800$. Correct side is Credit. So, $\text{Cr } 800$.
• Sundry Expenditures: Expense. Table shows $\text{Dr } 2,400$. Correct side is Debit. So, $\text{Dr } 2,400$. (Already on correct side).
• Sales Returns: Contra-revenue (reduces sales). Table shows $\text{Dr } 1,600$. Correct side is Debit. So, $\text{Dr } 1,600$. (Already on correct side).
• Salaries: Expense. Table shows $\text{Dr } 1,600$. Correct side is Debit. So, $\text{Dr } 1,600$. (Already on correct side).
• Purchases: Expense. Table shows $\text{Dr } 5,600$. Correct side is Debit. So, $\text{Dr } 5,600$. (Already on correct side).
• Sales: Revenue. Table shows $\text{Cr } 8,800$. Correct side is Credit. So, $\text{Cr } 8,800$. (Already on correct side).
• Debtors: Asset. Table shows $\text{Cr } 2,000$. Correct side is Debit. So, $\text{Dr } 2,000$.
• Capital: Equity. No value given in the table. This will be the balancing figure. Should be Credit.

We will list all accounts with their correct debit or credit balances.

$$\begin{array}{|l|r|r|} \hline \textbf{Name of Account} & \textbf{Debit (Rs)} & \textbf{Credit (Rs)} \\ \hline \text{Land and Building} & 1,00,000 & \\ \text{Plant and Machinery} & 50,000 & \\ \text{Opening Stock} & 40,000 & \\ \text{Debtors} & 2,000 & \\ \text{Cash-in-hand} & 400 & \\ \text{Purchases} & 5,600 & \\ \text{Sales Returns} & 1,600 & \\ \text{Sundry Expenditures} & 2,400 & \\ \text{Salaries} & 1,600 & \\ \text{Sundry Creditors} & & 1,00,000 \\ \text{Bank overdraft} & & 2,800 \\ \text{Purchases Returns} & & 800 \\ \text{Sales} & & 8,800 \\ \text{Capital (Balancing Figure)} & & 91,200 \\ \hline \textbf{Total} & \textbf{2,03,600} & \textbf{2,03,600} \\ \hline \end{array}$$

Total Debits:
$1,00,000 + 50,000 + 40,000 + 2,000 + 400 + 5,600 + 1,600 + 2,400 + 1,600 = 2,03,600$

Total Credits (excluding Capital):
$1,00,000 + 2,800 + 800 + 8,800 = 1,12,400$

Capital = Total Debits - Total Credits (excluding Capital)
Capital = $2,03,600 - 1,12,400 = 91,200$

The correct Trial Balance is presented above.