[DK Goel] Q. 15 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 15 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

From the following Trial Balance, extracted from the books of Raga Ltd., prepare a Trading and Profit and Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that date:

Debit balances	₹	Credit balances	₹
Drawings Account	20,000	Sales	2,20,000
Land & Buildings	12,000	Capital	1,01,110
Plant and Machinery	40,000	Discount	1,260
Carriage Inward	100	Commission	5,230
Wages	500	Bills Payable	1,28,870
Salary	2,000	Purchase Return	10,000
Sales Return	200
Bank Charges	200
Coal, Gas and Water	1,200
Purchases	1,50,000
Trade Expenses	3,800
Stock (Opening)	76,800
Cash at Bank	50,000
Rates and Taxes	870
Bills Receivable	24,500
Sundry Debtors	54,300
Cash in Hand	30,000
	4,66,470		4,66,470

The additional informations are as under:

(i) Closing Stock was valued at the end of the year at ₹ 20,000.

(ii) Depreciation on Plant and Machinery charged at 5% and on Land and Building at 10%.

(iii) Make a provision for discount on debtors at 3%.

(iv) Make a provision at 5% on debtors for Bad-debts.

(v) Salary outstanding was ₹ 100 and Wages prepaid were ₹ 40.

(vi) The manager is entitled to a Commission of 5% on Net Profit after charging such Commission.

[Ans. Gross Profit ₹ 21,240; Net Profit ₹ 12,664; Balance Sheet Total ₹ 2,23,377.]

Solution:-

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