[CBSE] Q 14 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 14 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2022-23?

On 31st March, 2022 the following Trial Balance was prepared from the Books of Manpreet:

Debit BalancesCredit Balances
Furniture
Building
Drawings
Cash at Bank
Wages
Discount Allowed
Bank Charges
Salaries
Purchases
Opening Stock
Cash in Hand
Sales Return
Carriage Inwards
Machinery
Sundry Debtors
Bad Debts
Insurance
Rent
Bills Receivable
Advertisement
3,400
21,700
4,200
2,470
31,250
2,640
90
5,610
1,32,700
40,200
150
1,250
3,400
43,800
1,000
1,250
2,450
2,500
3,500
Capital
Discount received
Bank Loan
Purcahses Return
Sales
Sundry Creditors
Provision for Doubtful Debts
1,00,000
2,000
10,000
970
1,91,940
12,450
800
3,18,1603,18,160

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2022 and also the Balance Sheet as at that date after making the following adjustments:

(i) Closing Stock at cost was ₹ 35,000 whereas its net realisable value (market value) was ₹ 30,000.

(ii) A new machine was purchased for ₹ 3,000 on 1st April, 2021 but it was not paid for and no entry was passed in the books.

(iii) Wages include ₹ 500 paid for the installation of machinery.

(iv) Provision for Doubtful Debts was raised to ₹ 1,400 and further bad debts of ₹ 300 were written off.

(v) Fire broke out on 20th March, 2022 and destroyed stock to the value of ₹ 8,000. The insurance company admitted claim for loss of stock of ₹ 5,000 and the amount was paid on 15th April, 2022.

(vi) Outstanding wages were ₹ 700 while outstanding salaries were ₹ 500.

(vii) Prepaid insurance was ₹ 250 and prepaid advertisement ₹ 500.

(viii) Machinery was depreciated by 10% and Furniture by 15%.

[Gross Profit – ₹ 21,910; Net Profit – ₹ 1,400; Balance Sheet Total – ₹ 1,23,850.]

Solution:-

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14Question – 14
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17Question – 17
18Question – 18
19Question – 19
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