[DK Goel] Q. 5 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)
Solutions of Question number 5 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)
From the following Trial Balance extracted from the books of Joseph, prepare Trading and Profit & Loss Account for the year ending 31st March, 2025 and a Balance Sheet as at that date:-
| Particulars | Dr. (₹) | Cr. (₹) |
| Capital Account | 1,37,000 | |
| Bad-debts | 1,250 | |
| Provision for Bad-debts | 2,000 | |
| Sundry Debtors and Creditors | 38,000 | 25,000 |
| Stock on 1st April, 2022 | 35,000 | |
| Purchases and Sales | 60,250 | 1,60,000 |
| Bank Overdraft | 28,500 | |
| Sales Return and Purchases Return | 2,000 | 1,250 |
| Stationery | 4,500 | |
| Interest Account | 1,180 | |
| Commission | 4,150 | |
| Cash in Hand | 18,500 | |
| Taxes and Insurance | 12,500 | |
| General Expenses | 7,820 | |
| Salaries | 33,000 | |
| Furniture | 6,400 | |
| Loose Tools | 62,500 | |
| Buildings | 75,000 | |
| 3,57,900 | 3,57,900 |
The following adjustments are to be made:
(i) Depreciate Buildings at 5% and Furniture at 10%. Loose Tools are revalued at ₹ 50,000 at the end of the year.
(ii) Salaries ₹ 3,000 and taxes ₹ 1,200 are outstanding.
(iii) Insurance amounting to ₹ 1,000 is prepaid.
(iv) Write off a further ₹ 1,000 as Bad-Debts and provision for Doubtful Debts is to be made equal to 5% on Sundry Debtors.
(v) Half of the stationery was used by the proprietor for his personal purposes.
(vi) Stock in hand on 31st March, 2025 was ₹ 41,000.
[Ans. G.P. ₹ 1,05,000; N.P. ₹ 30,210 and B/S Total ₹ 2,22,660.]
Hint:- Depreciation on Loose Tools will be ₹ 62,500 – ₹ 50,000 = ₹ 12,500.
Solution:-
