[DK Goel] Q. 26 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 26 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

The following balances were taken from the books of Shri R. Lal as at 31st March, 2023:

Particulars	₹	Particulars	₹
Capital	1,00,000	Rent (Cr.)	2,100
Drawing	17,600	Railway Freight on sales	16,940
Purchases	80,000	Carriage Inwards	2,310
Sales	1,40,370	Office Expenses	1,340
Purchase Returns	2,820	Printing & Stationery	660
Stock on 1.4.2022	11,460	Postage	820
Bad Debts	1,400	Sundry Debtors	62,070
Bad Debts Provision on 1.4.2022	3,240	Sundry Creditors	18,920
Rates & Insurance	1,300	Cash at Bank	12,400
Discount (Cr.)	190	Cash in Hand	2,210
Bills Receivable	1,240	Office Furniture	3,500
Sales Returns	4,240	Salaries & Comission	9,870
Wages	6,280	Addition to Building	7,000
Building	25,000

Prepare Trading and Profit & Loss A/c and a Balance Sheet as at 31st March, 2023, after keeping in view the following adjustments:

(i) Depreciate old Building at 2¹/2% and addition to Building at 2% and Office Furniture at 5%.

(ii) Write off further Bad-debts ₹ 570.

(iii) Increase the Bad-debts Provision to 6% of Debtors.

(iv) On 31st March, 2023 ₹ 570 are outstanding for salary.

(v) Rent receivable ₹ 200 on 31st March, 2023.

(vi) Interest on capital at 5% to be charged.

(vii) unexpired Insurance ₹ 240.

(viii) Stock was valued at ₹ 14,290 on 31st March, 2023.

[Ans. Gross Profit ₹ 53,190; Net Profit ₹ 16,060; Balance Sheet Total ₹ 1,22,950.]

Solution:-