# [CBSE] Q 14 Solutions Adjustments in Preparation of Financial Statements TS Grewal Class 11 (2022-23)

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:

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.

(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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