[DK Goel] Q. 21 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 21 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

From the following Trial Balance of Sh. Swamy Narain, prepare Trading and Profit and Loss Account for the year ended 31st March 2023 and a Balance Sheet as at that date:

Dr. Balances	₹	Cr. Balances	₹
Opening Stock	50,000	Capital	20,00,000
Purchases	5,30,000	Sales	12,50,000
General Expenses	45,000	Sundry Creditors	1,36,000
Stationery	6,000	Trade Charges due but not paid	5,000
Wages	2,15,000	Outstanding Rent	4,000
Trade Charges	25,000	Bank Balance	45,000
Rent	44,000
Charity	5,000
Advertisement Expenses	30,000
Carriage on Sales	12,000
Bills Receivables	30,000
Sundry Debtors	2,20,000
Cash Discount	16,000
Cash in Hand	22,000
Furniture	1,00,000
Advance for Furniture	40,000
Plant & Machinery	6,00,000
Building	14,50,000
	34,40,000		34,40,000

Adjustments:

(i) Stock on 31st March, 2023 was valued at ₹ 60,000.

(ii) A new machine was installed during the year costing ₹ 2,00,000 but it was not recorded in the books. Wages paid for its installation ₹ 10,000 have been debited to Wages Account.

(iii) An advance of ₹ 10,000 given alongwith purchase order was wrongly recorded in purchases.

(iv) General expenses include ₹ 20,000 paid for Wages.

(v) Wages include a sum of ₹ 50,000 spent on the erection of a Scooter Stand for employees.

(vi) Advance for Furniture is for furniture at proprietor’s residence.

(vii) Depreciate Furniture at 15% , Plant & Machinery at 20% and Building at 10%.

(viii) Carry forward 2/3 of Advertisement Expenses as unexpired.

(ix) A B/R of ₹ 20,000 was discounted with bank on 15 Nov. 2022, but not yet matured.

[Ans. Gross Profit ₹ 5,65,000; Net Profit ₹ 95,000; Balance Sheet Total ₹ 24,45,000.]

Solution:-

Hints:

(i) Creditors for Machinery ₹ 2,00,000 will be shown in Liabilities. Depreciation on Plant & Machinery ₹ 1,62,000.

(ii) ₹ 50,000 spent on scooter stand will be added to Building. Depreciation on Building ₹ 1,50,000.

(iii) Advance for ₹ 10,000 alongwith purchase order will be shown on asset side.

(iv) B/R discounted will not be recorded since it is contingent liability. As contingent Liability of ₹ 20,000 in respect of B/R discounted with bank, not yet matured.

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