[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.
