[CBSE] Q 8 Adjustments in Preparation of Financial Statement Solution TS Grewal Class 11 (2023-24)

Solution of Question number 8 of the Adjustments in Preparation of Financial Statements of TS Grewal Book class 11, 2023-24?

Following balances are taken from the books of Niranjan. Prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and Balance Sheet as on that date:

Particulars	₹	Particulars	₹
Capital Opening Stock Furniture Sales Purchases Return Rent Salaries Bad Debts Sundry Debtors Advertisement Expenses Patents	12,00,000 4,50,000 15,000 43,50,000 40,000 50,000 2,40,000 10,000 4,00,000 60,000 48,000	Drawings Plant and Machinery Purchases Insurances Sales Return Trade Expenses Wages 6% Investments Sundry Creditors Cash Miscellaneous Income	2,10,000 2,40,000 29,50,000 15,000 70,000 20,000 4,00,000 5,00,000 1,98,000 1,22,000 12,000

Adjustments:

(i) Closing Stock ₹ 7,50,000.

(ii) Depreciate Machinery by 10% and Furniture by 20%.

(iii) Wages ₹ 50,000 and salaries ₹ 20,000 are outstanding.

(iv) Write off ₹ 50,000 as further Bad Debts and create 5% Provision for Doubtful Debts. Also, create Provision for Discount on Debtors @ 2%.

(v) Investments were made on 1st July, 2022 and no interest has been received so far.

[Gross Profit – ₹ 12,20,000; Net Profit – ₹ 7,38,350; Balance Sheet Total – ₹ 19,96,350.]

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