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

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

From the following Trial Balance of Shubho, prepare Trading and Profit & Loss Accounts for the year ended 31st March, 2022 and Balance Sheet as at that date:

Heads of AccountsL.F.Dr. (₹)Cr. (₹)
Land and Building
Purchases (Adjusted)
Stock (31st March, 2022)
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., 2021 @ 18% p.a.)
Insurance
Commission
Plant and Machinery
Furniture and Fixtures
Bills Receivable
Sundry Debtors
Sundry Creditors
Cash at Bank
Office Equipments
Bills Payable
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




25,000


12,350
3,300
5,66,8505,66,850

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 – ₹ 2,39,050.]

[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 tarnsfer 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.

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