[CBSE] Q 38 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2025-26)

Solution of Question number 38 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2025-26?

Following is the Trial Balance of Karman on 31st March, 2025:

Particulars	Dr. (₹)	Cr. (₹)
Capital	—	8,00,000
Drawings	60,000
Opening Stock	75,000
Purchases	15,95,000
Freight on Purchases	25,000
Wages (11 months upto February, 2025)	66,000
Sales	—	23,10,000
Salaries	1,40,000	—
Postage and Courier	12,000	—
Printing and Stationery	18,000	—
Miscellaneous Expenses	30,000	—
Creditors	—	3,00,000
Investments	1,00,000	—
Discount Received	—	15,000
Debtors	2,50,000	—
Bad Debts	15,000	—
Provision For Doubtful Debts	—	8,000
Building	3,00,000	—
Machinery	5,00,000	—
Furniture	40,000	—
Commission on Sales	45,000	—
Interest on Investments	—	12,000
Insurance (upto 31st July 2025)	24,000	—
Bank Balance	1,50,000	—
Total	34,45,000	34,45,000

Adjustments:

(i) Closing Stock ₹ 2,25,000.

(ii) Machinery of ₹ 45,000 purchased on 1st October, 2024 was shown on Purchases. Freight paid on the Machinery was ₹ 5,000, which is included in Freight on Purchases.

(iii) Commission is payable at 21/2% on Sales.

(iv) Investments were sold at 10% profit, but the proceeds were credited to Sales Account.

(v) Write off further Bad Debts ₹ 10,000 and maintain Provision for Doubtful Debts at 5% of Debtors.

(vi) Depreciate Building by 21/2% p.a. and Machinery and Furniture at 10% p.a.

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2025 and Balance Sheet as at that date.

[Ans.: Gross Profit – ₹ 7,08,000; Net Profit – ₹ 3,81,000; Balance Sheet Total – ₹ 14,37,000.]

Solution:-

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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

S.N	Solutions
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
20	Question – 20

S.N	Solutions
21	Question – 21
22	Question – 22
23	Question – 23
24	Question – 24
25	Question – 25
26	Question – 26
27	Question – 27
28	Question – 28
29	Question – 29
30	Question – 30

S.N	Solutions
31	Question – 31
32	Question – 32
33	Question – 33
34	Question – 34
35	Question – 35
36	Question – 36
37	Question – 37
38	Question – 38
39	Question – 39
40	Question – 40
41	Question – 41
42	Question – 42
43	Question – 43