[DK Goel] Q. 32 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 32 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

On 31st March, 2023 the following Trial Balance of Sh. Ajay Oswal was taken out. Prepare Trading and Profit & Loss Account for the year and Balance Sheet at that date after making the following adjustments:-

(i) Stock on 31st March, 2023 was valued ₹ 26,000.

(ii) General Manager is entitled to a Commission of 5% on Net Profits after charging such Commission.

(iii) ₹ 2,000 paid for Salary & Wages have been included in Sundry Debtors.

(iv) Increase Bad-debts by ₹ 800 and create provision for Doubtful Debts at 10%.

(v) General Expenses include insurance premium paid up to 30th June, 2023 @ ₹ 3,000 per annum.

(vi) ₹ 600 out of the Advertisement Expenses are to be carried forward to the next year.

(vii) Charge one-fourth of ‘Salaries and Wages’ to Trading A/c.

(viii) Accrued Income ₹ 2,500.

	Dr. (₹)	Cr. (₹)
Capital		3,00,000
Income Tax	8,000
Stock on 1-4-2022	16,000
Return Inwards	5,600
Carriage Inwards	8,200
Deposit with PNB	15,000
Return Outwards		4,100
Carriage Outwards	3,700
Loan to Mar. Malik @ 18% p.a. given on 1-7-2022	10,000
Interest on the above		900
Rent	13,000
Outstanding Rent		1,000
Purchases	1,48,000
Debtors	75,800
Goodwill	25,000
Land and Buildings	2,00,000
Furniture	15,000
Salaries and Wages	38,000
Creditors		26,200
Advertisement Expenses	3,000
Provision for Doubtful Debts		3,500
Bad-Debts	2,000
Patents and Patterns	6,000
Cash in Hand	8,900
Sales		2,70,000
General Expenses	4,500
	6,05,700	6,05,700

[Ans. G.P ₹ 1,12,300; N.P. ₹

54,000; B/s Total ₹ 3,75,900.]

Solution:-

Hints:

(1) Total Salaries & Wages ₹ 38,000 + ₹ 2,000 = ₹ 40,000. 1/4th of ₹ 40,000 will be taken to Trading A/c and the balance to P & L A/c

(2) Manager’s Commission will be 5/105 of ₹ 56,700.

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