commercemine.com

11th | Adjustments in Preparation of Financial Statements | Question No. 11 and 12 | Ts Grewal Solution 2022-2023

Question 11:


From the following Trial Balance of Shubho, prepare final accounts for the year ended 31st March, 2022 and Balance Sheet as at that date:

 

 

 

Particulars

Dr. Balances
(`)

Cr. Balances
(`)

 

Land and Building

50,000

 

 

Purchases (Adjusted)

2,10,000

 

 

Stock (31st March, 2022)

45,000

 

 

Returns Inward

1,500

 

 

Returns Outward

 

2,500

 

Wages

45,300

 

 

Salaries

39,000

 

 

Office Expenses

15,400

 

 

Carriage Inwards

1,200

 

 

Carriage Outwards

2,000

 

 

Discount allowed

750

 

 

Discount received

 

1,200

 

Bad Debts

1,200

 

 

Sales

 

3,85,000

 

Capital Account

 

1,15,000

 

Chatterji's Loan A/c (taken on 1st Oct., 2018 @ 18% p.a.

 

25,000

 

Insurance

1,500

 

 

Commission

 

1,500

 

Plant and Machinery

50,000

 

 

Furniture and Fixtures

20,000

 

 

Bills Receivable

20,000

 

 

Sundry Debtors

40,000

 

 

Sundry Creditors

 

25,000

 

Cash at Bank

16,000

 

 

Office Equipments

12,000

 

 

Bills Payable

 

12,350

 

Expenses Payable

 

3,300

 

Total

5,70,850

5,70,850

 

 

 

 


The following adjustments be taken care of:
(i) Depreciate Land and Building @ 6%, Plant and Machinery @ 10%, Office equipments @ 20% and Furniture and Fixtures @ 15%.
(ii) Calculate Provision for Doubtful Debts at 2% on Sundry Debtors.
(iii) Insurance premium includes
` 250 Insurance Premium paid in advance.
(iv) Provide salary to Shubho
` 15,000 p.a.
(v) Outstanding Salaries 
` 11,500.
(vi) 10% of the final profit is to be transferred to General Reserve.

Answer:


Trading Account

for the year ended March 31, 2022

Dr.

 

 

Cr.

Particulars

 (`)

Particulars

 (`)

Purchases (Adjusted)

2,07,500 

Sales

3,85,000

 

 

 

 

  Less: Returns

1,500

3,83,500

Carriage Inwards

1,200

 

 

Wages

45,300

 

 

Gross Profit

1,29,500

 

 

 

3,83,500

 

3,83,500

 

 

 

 

 

Profit & Loss Account

for the year ended March 31, 2022

Dr.

 

 

Cr.

Particulars

Amount

(`)

Particulars

Amount

(`)

Carriage Outwards

2,000

Gross Profit

1,29,500

Salaries

39,000

 

Commission

1,500

  Add: Outstanding

11,500

 

Discount

1,200

  Add: Payable to Proprietor

15,000

65,500

 

 

Insurance Premium

1,500

 

 

 

  Less: Prepaid

250

1,250

 

 

Discount

750

 

 

Office Expenses

15,400

 

 

Outstanding Interest on Loan

2,250

 

 

Bad Debts

1,200

 

 

 

  Add: Provision for Doubtful Debts

800

2,000

 

 

Depreciation on:

 

 

 

Furniture & Fixtures

3,000

 

 

 

Land & Building

3,000

 

 

 

Office Equipment

2,400

 

 

 

Plant & Machinery

5,000

13,400

 

 

General Reserve

2,965

 

 

Net Profit

26,685

 

 

 

1,32,200

 

1,32,200

 

 

 

 

 

Balance Sheet

as on March 31, 2022

Dr.

 

 

Cr.

Liabilities

Amount

(`)

Assets

Amount

(`)

Bills Payable

12,350

Furniture & Fixtures

20,000

 

Creditors

25,000

  Less: Depreciation

3,000

17,000

Expenses Payable

3,300

Land & Building

50,000

 

Capital

1,15,000

 

  Less: Depreciation

3,000

47,000

  Add: Salary Payable

15,000

 

Debtors

40,000

 

  Add: Net Profit

26,685

1,56,685

  Less: Provision

800

39,200

Chatterji’s Loan

25,000

 

Plant & Machinery

50,000

 

  Add: Outstanding Interest

2,250

27,250

  Less: Depreciation

5,000

45,000

General Reserve

2,965

Office Equipment

12,000

 

Outstanding Salaries

11,500

  Less: Depreciation

2,400

9,600

 

 

Bills Receivable

20,000

 

 

Closing Stock

45,000

 

 

Cash at Bank

16,000

 

 

Prepaid Insurance

250

 

2,39,050

                

2,39,050

 

 

 

 

 

 

 

 

 

 

Sorry for inconvenience
Question No. 12 will be available here soon

Click below for more Questions

Ts Grewal Solution 2022-2023

Class 11th

Click on below links for 

11th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021