[CBSE] Q 12 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 12 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2022-23?

Prepare Trading and Profit & Loss Account for the year ending on 31st March, 2022 and Balance Sheet as on that date from the following balances of Trial Balance:

ParticularsParticulars
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
Bills Payable
Sales
General Reserve
7,000
1,000
5,000
6,000
32,000

1,00,000
1,000
2,000
33,000
7,700
1,28,000
20,000

Adjustment:

(i) The value of stock on 31st March, 2022, ₹ 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, 2022.

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

(vi) A fire occured on 20th March, 2022 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.NSolutions
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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