[CBSE] Q 11 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2023-24)

Solution of Question number 11 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2023-24?

From the following Trial Balance of Shubho, prepare Trading and Profit & Loss Accounts for the year ended 31st March, 2023 and Balance Sheet as at that date:

Heads of Accounts	L.F.	Dr. (₹)	Cr. (₹)
Land and Building Purchases (Adjusted) Stock (31st March, 2023) Wages Salaries Office Expenses Carriage Inwards Carriage Outwards Discount Allowed Discount Received Bad Debts Sales Capital Account Chatterji’s Loan A/c (Taken on 1st Oct., 2022 @ 18% p.a.) Insurance Commission Plant and Machinery Furniture and Fixtures Drawings Sundry Debtors Sundry Creditors Cash at Bank Office Equipments Expenses Payable		50,000 2,07,500 45,000 45,300 39,000 15,400 1,200 2,000 750 – 1,200 – – – 1,500 – 50,000 20,000 20,000 40,000 – 16,000 12,000 – –	– – – – – – – – – 1,200 – 3,83,500 1,15,000 25,000 – 1,500 – – – – 37,350 – – 3,300
		5,66,850	5,66,850

The following adjustments be made:

(i) Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 2% and Furniture and Fixtures @ 15%.

(ii) Create Provision for Doubtful Debts at 2% on Sundry Debtors.

(iii) Insurance includes ₹ 250 Insurance Premium paid in advance.

(iv) Provide salary to Shubho ₹ 15,000 p.a.

(v) Outstanding Salaries ₹ 11,500.

(vi) 10% of the net profit is to be transferred to General Reserve.

[Gross Profit – ₹ 1,29,500; Net Profit – ₹ 26,685; Balance Sheet Total – ₹ 2,19,050.]

[Hints:]

1. Closing stock is given in the Trial Balance. Thus, it will be shown in the Balance Sheet.
2. Adjusted Purchases is given. It means Opening Stock, Purchases Return and Closing stock are already adjusted.
3. Net Profit, i.e., Profit before transfer to General Reserve is ₹ 29,650. Transfer to General Reserve is 10% of ₹ 29,650, i.e., ₹ 2,965.]

Solution:-

Here is the list of all Solutions.

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