[DK Goel] Q. 14 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 14 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

Following is the Trial Balance of Mr. Gautam as at 31st March, 2023:

Particulars	₹	Particulars	₹
Goodwill	30,000	Purchase Returns	2,650
Land & Buildings	60,000	Capital A/c	2,03,000
Plant & Machinery	40,000	Bills Payable	13,800
Loose Tools	3,000	Sundry Creditors	30,000
Bills Receivable	2,000	Sales	1,15,000
Opening Stock	40,000
Purchases	51,000
Wages	20,000
Carriage Inwards	1,200
Coal & Gas	5,600
Salaries	4,000
Rent	2,700
Discount allowed	1,500
Cash at Bank	25,000
Cash in Hand	1,400
Sundry Debtors	45,000
Repairs	1,800
Printing & Stationery	600
Bad-debts	1,200
Advertisements	3,500
Furniture and Fixtures	1,200
General Expenses	250
Investments	5,000
Drawings	15,000
Carriage Outwards	1,500
Sales Returns	2,000
	3,64,450		3,64,450

You are required to prepare Final Accounts after taking into account the following adjustments:

(a) Closing Stock on 31st March, 2023 was ₹ 60,000.

(b) Depreciate Plant and Machinery at 5%, Loose Tools at 15% and Furniture and fixtures at 5%.

(c) Provide 21/2% for discount on Sundry Debtors and also provide 5% for Bad and Doubtful Debts on Sundry Debtors.

(d) Only three quarter’s rent has been paid, the last quarter’s rent being outstanding.

(e) Interest earned but not received ₹ 600.

(f) Write off 1/4th of Advertisement expenses.

[Ans. Gross Profit ₹ 57,850; Net Profit ₹ 37,296; Total of B/S ₹ 2,69,996.]

Solution:-

Hints:

(1) Rent shown in the Trial Balance is for 3 quarters or for 9 months. As such Rent Outstanding for the remaining 3 months will be 2,700/9 x 3 = ₹ 900.

(2) First, provision for Doubtful Debts will be created on debtors and then provision for discount will be calculated on debtors remaining after deducting the provision for Doubtful Debts.

Below is the list of all solutions

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

S.N	Solutions
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
20	Question – 20

S.N	Solutions
21	Question – 21
22	Question – 22
23	Question – 23
24	Question – 24
25	Question – 25
26	Question – 26
27	Question – 27
28	Question – 28
29	Question – 29
30	Question – 30

S.N	Solutions
31	Question – 31
32	Question – 32
33	Question – 33
34	Question – 34
35	Question – 35
36	Question – 36
37	Question – 37
38	Question – 38
39	Question – 39