[CBSE] Q 12 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2023-24)

Solution of Question number 12 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2023-24?

Prepare Trading and Profit & Loss Account for the year ending on 31st March, 2023 and Balance Sheet as on that date from the following balances of Trial Balance:

Particulars	₹	Particulars	₹
Drawings Machinery Stock Purchases Returns Inward Furniture Carriage Rent, Rates and Taxes Printing and Stationery Office Expenses Bad Debts Sundry Debtors	10,000 50,000 25,000 90,000 2,000 10,000 2,000 5,000 1,000 1,200 1,500 40,000	Bills Receivable Discount Wages and Salaries Cash in Hand Cash at Bank Credit Balances Capital Returns Outward Provision for Doubtful Debts Creditors Sales General Reserve	7,000 1,000 5,000 6,000 32,000 1,00,000 1,000 2,000 37,700 1,28,000 20,000

Adjustment:

(i) The value of stock on 31st March, 2023, ₹ 40,000.

(ii) Provision for Doubtful Debts is to be maintained at 5% on Sundry Debtors.

(iii) Charge depreciation on both Furniture and Machinery @ 10% p.a.

(iv) Machinery costing ₹ 20,000 was purchased on 1st January, 2023.

(v) Allow interest on capital @ 5% p.a.

(vi) A fire occurred on 20th March, 2023 and stock of the value of ₹ 7,000 was destroyed. It was fully insured and the insurance company admitted the claim in full.

(vii) 10% of net profit to be carried to General Reserve.

[Gross Profit – ₹ 52,000; Net Profit – ₹ 29,520; Balance Sheet Total – ₹ 1,85,500.]

[Hint: Net Profit, i.e., Profit before transfer to General Reserve – ₹ 32,800. Transfer to General Reserve – ₹ 3,280 (i.e., 10% of ₹ 32,800.)

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