[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:
| Debit Balances | ₹ | Credit 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 |
| 3,18,160 | 3,18,160 |
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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Sir your solution is wrong please correct your solution on profit and loss account
corrected loss by fire by mistake written as 2000, it is 3000. Thanks for informing.