[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.
