[DK Goel] Q. 19 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 19 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

From the following Trial Balance of Geeta, you are required to prepare:

(i) Trading and Profit and Loss Account for the year ended on 31st March, 2019, and

(ii) Balance Sheet as at that date.

Debit Balances	₹	Credit Balances	₹
Stock on 01.04.2018	70,000	Capital	3,00,000
Plant and Machinery	3,50,000	Wages Outstanding	4,000
Rent	30,000	Sales	5,00,000
Depreciation on Plant and Machinery	15,000	Creditors	45,000
Wages	20,000	Bills Payables	16,000
Salary for 11 months	11,000	Discount	12,000
Cash	27,000	Commission	8,000
Purchases	2,70,000
Debtors	80,000
Discount	2,000
Carriage Inwards	4,000
Bad Debts	6,000
	8,85,000		8,85,000

Adjustments:

(i) Stock on 31st March, 2019 was ₹ 96,000.

(ii) Stock destroyed by fire was ₹ 6,000 and the Insurance Company accepted a claim for ₹ 3,600.

(iii) ₹ 1,500 paid as rent of the office was debited to Landlord’s account (included in Debtors).

(iv) Write off further bad debts ₹ 4,000.

(v) Sales include sales on return basis. Approval for sale of ₹ 2,500 has not been received till 31.03.2019. The rate of gross profit on this sale was 25% on cost.

(vi) Create a provision for Doubtful Debts on Debtors 5%.

[Ans. Gross Profit ₹ 2,37,500; Net Profit ₹ 1,81,000; Balance Sheet total ₹ 5,47,000.]

Solution:-

Hints:

(i) ₹ 2,500 will be deducted from Sales and Debtors for cancellation of sales on a return basis. Also, the cost of such goods i.e., ₹ 2,000 will be added to Closing Stock.

(2) New Provision will be 5% on ₹ 72,000.

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