[DK Goel] Q. 5 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)

Solutions of Question number 5 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)

From the following Trial Balance extracted from the books of Joseph, prepare Trading and Profit & Loss Account for the year ending 31st March, 2025 and a Balance Sheet as at that date:-

Particulars	Dr. (₹)	Cr. (₹)
Capital Account		1,37,000
Bad-debts	1,250
Provision for Bad-debts		2,000
Sundry Debtors and Creditors	38,000	25,000
Stock on 1st April, 2022	35,000
Purchases and Sales	60,250	1,60,000
Bank Overdraft		28,500
Sales Return and Purchases Return	2,000	1,250
Stationery	4,500
Interest Account	1,180
Commission		4,150
Cash in Hand	18,500
Taxes and Insurance	12,500
General Expenses	7,820
Salaries	33,000
Furniture	6,400
Loose Tools	62,500
Buildings	75,000
	3,57,900	3,57,900

The following adjustments are to be made:

(i) Depreciate Buildings at 5% and Furniture at 10%. Loose Tools are revalued at ₹ 50,000 at the end of the year.

(ii) Salaries ₹ 3,000 and taxes ₹ 1,200 are outstanding.

(iii) Insurance amounting to ₹ 1,000 is prepaid.

(iv) Write off a further ₹ 1,000 as Bad-Debts and provision for Doubtful Debts is to be made equal to 5% on Sundry Debtors.

(v) Half of the stationery was used by the proprietor for his personal purposes.

(vi) Stock in hand on 31st March, 2025 was ₹ 41,000.

[Ans. G.P. ₹ 1,05,000; N.P. ₹ 30,210 and B/S Total ₹ 2,22,660.]

Hint:- Depreciation on Loose Tools will be ₹ 62,500 – ₹ 50,000 = ₹ 12,500.

Solution:-

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