[CBSE] Q 5 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2023-24)

Solution of Question number 5 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2023-24?

Trial Balance of a Business as at 31st March, 2023 is given below:

Particulars	Dr. (₹)	Particulars	Cr. (₹)
Stock on 1st Apirl, 2022 Furniture Plant and Machinery Debtors Wages Salaries Bad Debts Purchases Electricity Charges Telephone Charges General Expenses Postage Expenses Returns Inward Insurance Premium Cash In Hand Cash at Bank	25,000 8,000 1,50,000 30,000 12,000 20,000 1,000 1,20,000 1,200 2,400 3,000 1,800 900 1,500 2,500 40,000	Sales Commission Returns Outward Creditors Capital	2,27,800 500 1,000 40,000 1,50,000
	4,19,300		4,19,300

Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and Balance sheet as at that date after taking into account the following adjustments:

(i) Closing Stock was valued at ₹ 7,000.

(ii) Outstanding liabilities for wages were ₹ 600 and salaries ₹ 1,400.

(iii) Depreciation is to be provided @ 5% p.a. on fixed assets.

(iv) Plant and Machinery includes a machine purchased for ₹ 10,000 on 1st October, 2022.

(v) Insurance premium paid in advance ₹ 200.

[Gross Profit – ₹ 77,300; Net Profit – ₹ 38,050; Balance Sheet Total – ₹ 2,30,050.]

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
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