[DK Goel] Q. 20 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

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

The following Trial Balance has been extracted from the books of Shri Santosh Kumar as at 31st March, 2023:-

Particulars	Dr (₹)	Cr (₹)
Plant and Machinery	1,00,000
Furniture	12,000
Capital Account		1,91,000
Household Expenses	16,000
Sales		4,68,000
Loose Tools	20,000
Goodwill	10,000
Opening Stock (1-4-2022)	20,000
Returns Outward		4,000
Discount		6,000
Purchases	2,12,000
Returns Inwards	8,000
Wages	1,00,000
Salaries	60,000
Outstanding Salaries		5,000
Investments at 10% p.a.	6,000
Interest on Investments		300
Sundry Creditors		24,000
Miscellanous Receipts		2,000
Carriage Inwards	12,000
General Expenses and Insurance	39,000
Advertisement Expenses	15,000
Postage	4,000
Sundry Debtors	56,000
B. Barua	2,000
Cash Balance	14,000
Bank		3,200
Suspense Account		2,500
	7,06,000	7,06,000

The following additional information is available:-

(i) Stock on 31st March, 2023 was ₹ 30,800.

(ii) Depreciation is to be charged on Plant and Machinery at 5% and Furniture at 6% Losse Tools are revalued at ₹ 16,000.

(iii) Create a provision of 2% for Discount on Debtors.

(iv) Salary of ₹ 2,000 paid to Shri B.Barua, a temporary employee, stands debited to his personal account and it is to be correctedff.

(v) Write off 1/5th of advertisement expenses.

You are to prepare Trading and Profit & Loss Account for the year ended 31st March, 2023 and a Balance Sheet as at that date.

[Ans. Gross Profit ₹ 1,50,800; Net Profit ₹ 40,560; B/S Total ₹ 2,50,260.]

Solution:-

Hints:-

(1) Household Expenses means Drawings.

(2) Interest on Investments shown on the Cr. side of P & L A/c will be ₹ 300 + ₹ 300 = ₹ 600. Investments shown on the Assets side will be ₹ 6,300, i.e., ₹ 6,000 + ₹ 300 for accrued interest.

(3) 4/5 of Advertisement Expenses will be shown on the Assets side of Balance Sheet.

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