[CBSE] Q 7 Solutions Adjustments in Preparation of Financial Statements TS Grewal Class 11 (2022-23)

Are you looking for the solution of Question number 7 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2022-23?

Following are the balances extracted from the books of Narain on 31st March, 2022:

Particulars	₹	Particulars	₹
Narain’s Capital Narain’s Drawings Furniture and Fittings Bank Overdraft Creditors Building Stock on 1st April, 2021 Debtors Rent from Tenants Purchases	3,00,000 50,000 26,000 42,000 1,38,000 2,00,000 2,20,000 1,80,000 10,000 11,00,000	Sales Sales Return Discount (Dr.) Discount (Cr.) Insurance General Expenses Salaries Commission (Dr.) Carriage on Purchases Bad Debts written off	15,00,000 20,000 16,000 20,000 20,000 40,000 90,000 22,000 18,000 8,000

Additional Information:

(i) Closing Stock at cost as on 31st March, 2022 was ₹ 2,00,600, whereas its Net Realisable Value (Market Value) was ₹ 2,05,000.

(ii) Depreciate: Building by ₹ 3,000 and Furniture and Fittings by ₹ 2,500.

(iii) Make a provision of 5% on debtors for doubtful debts.

(iv) Carry forward ₹ 2,000 for unexpired insurance.

(v) Outstanding salary was ₹ 15,000.

Prepare Tarding and Profit & Loss Account for the year and Balance Sheet as at that date.

[Gross Profit – ₹ 3,42,600; Net Profit – ₹ 1,49,100; Balance Sheet Total – ₹ 5,94,100.]

[Hints: 1. Closing Stock will be taken at ₹ 2,00,600, being lower of Cost and Net Realisable Value (Market Value) following the Prudence Concept)

2. ₹ 2,000 out of Insurance Expenses are prepaid insurance.]

Solution:-

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S.N	Solutions
1	Question – 1
2	Question – 2
3	Question – 3
4	Question – 4
5	Question – 5
6	Question – 6
7	Question – 7
8	Question – 8
9	Question – 9
10	Question – 10
11	Question – 11
12	Question – 12
13	Question – 13
14	Question – 14
15	Question – 15
16	Question – 16
17	Question – 17
18	Question – 18
19	Question – 19