[CBSE] Q 7 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2023-24)
Solution of Question number 7 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2023-24?
Following are the balances extracted from the books of Narain on 31st March, 2023:
| Particulars | ₹ | Particulars | ₹ |
| Narain’s Capital Narain’s Drawings Furniture and Fittings Bank Overdraft Creditors Building Stock on 1st April, 2021 Debtors Rent from Tenants Purchases | 3,00,000 50,000 26,000 42,000 1,38,000 2,00,000 2,20,000 1,80,000 10,000 11,00,000 | Sales Sales Return Discount (Dr.) Discount (Cr.) Insurance General Expenses Salaries Commission (Dr.) Carriage on Purchases Bad Debts written off | 15,00,000 20,000 16,000 20,000 20,000 40,000 90,000 22,000 18,000 8,000 |
Additional Information:
(i) Closing Stock at cost as on 31st March, 2023 was ₹ 2,00,600, whereas its Net Realisable Value (Market Value) was ₹ 2,05,000.
(ii) Depreciate: Building by ₹ 3,000 and Furniture and Fittings by ₹ 2,500.
(iii) Make a provision of 5% on debtors for doubtful debts.
(iv) Carry forward ₹ 2,000 for unexpired insurance.
(v) Outstanding salary was ₹ 15,000.
Prepare Tarding and Profit & Loss Account for the year and Balance Sheet as at that date.
[Gross Profit – ₹ 3,42,600; Net Profit – ₹ 1,49,100; Balance Sheet Total – ₹ 5,94,100.]
[Hints: 1. Closing Stock will be taken at ₹ 2,00,600, being lower of Cost and Net Realisable Value (Market Value) following the Prudence Concept)
2. ₹ 2,000 out of Insurance Expenses are prepaid insurance.]
Solution:-
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