[DK Goel] Q. 24 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 24 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

Following are balances from the trial balance of Ritesh Traders as at 31st March 2023:

Particulars	₹	Particulars	₹
Opening Stock	5,620	Interest on Securities	6,400
Purchases	1,54,200	Land and Building	10,00,000
Sales	3,74,800	Securites	6,00,000
Wages	1,26,000	Cash in Hand	25,600
Carriage Inward	900	Bank Overdraft	3,40,000
Freight on Purchase	4,900	Discount Allowed	1,500
Salaries	8,000	Discount Received	420
Insurance	2,800	Bills Payable	4,000
Repair to Machinery	1,400	Loan (Cr.)	11,000
Drawings	5,600	Bills Receivable	7,000
Customer’s A/c	15,800	Capital Account	13,47,600
Postage	500	Suppliers A/c	40,000
Trade Expenses	1,000	X’s Loan (Cr.)	18,600
		Plant and Machinery	1,82,000

Prepare Trading and Profit & Loss Account for the year ended 31st March 2023 and Balance Sheet as at that date after taking into account the following adjustments:

(i) Closing Stock was valued at ₹ 19,000.

(ii) Depreciation to be provided on Land and Building @ 5% p.a. and on Plant & Machinery @ 10% p.a.

(iii) Write off ₹ 2,000 as Bad Debt.

(iv) Insurance was prepaid ₹ 700.

(v) Create provision for doubtful debts @ 5% on debtors.

(vi) Wages include ₹ 4,800 for installation of a new machinery.

[Ans. Gross Profit ₹ 1,06,980; Net Profit ₹ 27,930; Balance Sheet Total ₹ 17,83,530.]

Solution:-

Hints:

(i) Customer’s A/c means Debtors A/c

(ii) Supplier’s A/c means Creditors A/c

(iii) Repairs to Machinery will appear on Dr. side of P & L A/c

(iv) Securities means Investments. It will appear on the assets side of Balance Sheet.

(v) Interest on Securities will appear on the Cr. side of P & L A/c.

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