[CBSE] Q 41 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2025-26)

Solution of Question number 41 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2025-26?

On 31st March, 2025, the following Trial Balance was prepared from the books of Manpreet:

Debit	Balances (₹)	Credit	Balances (₹)
Furniture	3,400	Capital	1,00,000
Building	21,700	Discount Received	2,000
Drawings	4,200	Bank Loan	10,000
Cash at Bank	2,470	Purchases Return	970
Wages	31,250	Sales	1,19,940
Discount Allowed	2,640	Sundry Creditors	12,450
Bank Charges	90	Provision for Doubtful Debts	800
Salaries	5,610
Purchases	1,32,700
Opening Stock	40,200
Cash in Hand	2,650
Sales Return	1,250
Carriage Inwards	3,400
Machinery	14,600
Sundry Debtors	43,800
Bad Debts	1,000
Insurance	1,250
Rent	2,450
Advertisement	3,500
	3,18,160		3,18,160

Prepare Trading and Profit and Loss Account for the year ended 31st March, 2025 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, 2024 but it was not paid for and entry was not recorded 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, 2025 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, 2025.

(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%.

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

Solution:-

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1	Question – 1
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5	Question – 5
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S.N	Solutions
11	Question – 11
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25	Question – 25
26	Question – 26
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31	Question – 31
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41	Question – 41
42	Question – 42
43	Question – 43