[CBSE] Q 7 Solutions Adjustments in Preparation of Financial Statements TS Grewal Class 11 (2022-23)

Are you looking for the solution of Question number 7 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2022-23?

Following are the balances extracted from the books of Narain on 31st March, 2022:

(i) Closing Stock at cost as on 31st March, 2022 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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