[DK Goel] Q. 8 Financial Statements (with Adjustments) Solutions Class 11 CBSE (2025-26)
Solutions of Question number 8 of Chapter 20 Financial Statements (with Adjustments) DK Goel class 11 CBSE (2025-26)
Prepare a Trading and Profit & Loss account for the year ending March 31, 2023, from the balances extracted of M/s Rahul Sons. Also prepare a balance sheet as at that date.
| Debit Balances | ₹ | Credit Balances | ₹ |
| Opening Stock | 50,000 | Sales | 1,80,000 |
| Wages | 3,000 | Purchase return | 2,000 |
| Salary | 8,000 | Discount received | 500 |
| Purchases | 1,75,000 | Provision for bad debts | 2,500 |
| Sales Return | 3,000 | Capital | 2,90,000 |
| S. Debtors | 82,000 | Bills Payable | 22,000 |
| Discount allowed | 1,000 | Commission received | 4,000 |
| Insurance | 3,200 | Rent | 6,000 |
| Rent, rates and taxes | 4,300 | Loan | 34,800 |
| Fixtures and fittings | 20,000 | Output CGST | 15,000 |
| Trade Expenses | 1,500 | Output SGST | 15,000 |
| Bad debts | 2,000 | ||
| Drawings | 32,000 | ||
| Repair and revewals | 1,600 | ||
| Travelling expenses | 4,200 | ||
| Postage | 500 | ||
| Legal fees | 500 | ||
| Bills Reveivable | 50,000 | ||
| Building | 1,10,000 | ||
| Input CGST | 10,000 | ||
| Input SGST | 10,000 | ||
| 5,71,800 | 5,71,800 |
Adjustments:-
(i) Commission received in advance ₹ 1,000.
(ii) Rent receivable ₹ 2,000, subject to levy of CGST and SGST @ 9% each.
(iii) Salary outstanding ₹ 1,000 and insurance prepaid ₹ 800.
(iv) Further Bad-debts ₹ 1,000 and provision for Bad-debts @ 5% on debtors and provision for discount on debtors @ 2%.
(v) Closing Stock ₹ 32,000.
(vi) Depreciation on Building @ 6% p.a.
[Ans. Gross Loss ₹ 17,000; Net Loss ₹ 43,189 and Balance Sheet Total ₹ 2,83,971.]
Note: GST is not levied on Salary.
Solution:-
