[DK Goel] Q. 2 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)
Solutions of Question number 2 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)
From the following Trial Balance of Rahim prepare Trading and Profit & Loss Account for the year ended 31st March, 2025 and Balance Sheet as at that date:-
| Particulars | Dr. (₹) | Cr. (₹) |
| Stock 1st April, 2024 | 44,600 | |
| Purchases and Purchases Return | 4,60,000 | 10,400 |
| Freehold Premises | 2,00,000 | |
| Incidental Trade Exp. | 22,400 | |
| Insurance | 3,700 | |
| Audit Fees | 1,600 | |
| Commission Received | 5,400 | |
| Interest | 2,800 | |
| Debtors and Creditors | 64,800 | 50,000 |
| Wages | 60,400 | |
| Salaries | 30,400 | |
| Capital | 3,00,000 | |
| Drawings | 24,000 | |
| Income-Tax | 7,200 | |
| Investments | 16,000 | |
| Discount allowed & Received | 15,000 | |
| Sales Return & Sales | 12,800 | |
| B/R | 10,400 | |
| Office Furniture | 18,000 | |
| Rent | 5,200 | |
| Cash in Hand | 10,500 | |
| Bank Balance | 15,200 | |
| 10,17,000 | 10,17,000 |
Adjustments:-
1. Stock at 31st March, 2025 is ₹ 60,000.
2. Write off 5% Depreciation on freehold premises and 20% on office furniture.
3. Commission earned but not received ₹ 1,000.
4. Interest earned ₹ 1,500.
5. ₹400 for rent has been received in advance.
6. Charge interest on Capital @ 6% and ₹ 1,200 on Drawings.
[Ans. G.P. ₹ 1,27,400; N.P. ₹ 47,800; Balance Sheet Total ₹ 3,83,800.]
Hint:- Income Tax is the ‘personal expenses’ of the Proprietor, as such it will be treated as Drawings.
Solution:-
