TS Grewal Class 11 Solutions for Accountancy Chapter 14
TS Grewal Class 11 Solutions for Accountancy Chapter 14 – Adjustments in Preparation of Financial Statements is a concept that students should consider while preparing for their Accountancy exam. Here, are few solutions rendered in a simple and stepwise method.
| Board | CBSE |
| Class | Class 11 |
| Subject | Accountancy |
| Chapter | Chapter 14 |
| Chapter Name | Adjustments in Preparation of Financial Statements |
| Number of questions solved | 7 |
| Category | TS Grewal |
Chapter 14 – Adjustments in Preparation of Financial Statements defines the below-mentioned concepts:
- Inventory
- Trading Account
- Profit & Loss Account
- Balance Sheet Account
- Accruals and Prepayments
TS Grewal Class 11 Solutions for Accountancy Chapter 14 – Adjustments in Preparation of Financial Statements
QUESTION 1
| Dr. Profit & Loss for till March 31st, 2018 Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| To Salaries
To Repairs To Rent 4,500 And: Unpaid Rent 500 |
8,000
1,900 5,000 |
By Gross Profit b/d
By Net Loss c/d |
10,900
24,900 |
| To Bad Debts | 5,000 | ||
| To Depreciation On:
Machine & Plant 12,000 Vehicle Delivery 3,900 |
15,900 | ||
| 35,800 | 35,800 | ||
QUESTION 2
Arrange Profit & Loss and Trading Account till March 31st, 2018
| Particulars | ₹ | Particulars | ₹ |
| Capital
Creditor Returns Outward Sales Sales Bills Payable Machine & Plant Sundry Debtor Drawing Purchase Returns Inward |
1,00,000
12,000 5,000 1,64,000 5,000 40,000 24,000 10,000 1,05,000 3,000 |
Wages
Bank Repairs On April 1st, 2017 stock available Rent Manufacturing Expenses Trade Expenses Bad Debts Carriage Power & Fuel |
50,000
10,000 500 20,000 4,000 8,000 7,000 2,000 1,500 1,000 |
Added Information:
(i) Stock at 14,500 on closing
(ii) Plant & Machine Depreciation ₹4,000
(iii) Bad Debts are written off ₹5,000
(iv) Repair due amount ₹500
Solution.
| Dr. Trading Account till March 31st, 2018 Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| To Opening Stock
To Purchase 1,05,000 Less: Return Outward 5,000 To Wages To Manufacturing Expenses To Carriage To Gross Profit c/d |
20,000
1,00,000 50,000 8,000 1,500 1,000 |
By Sales 1,64,000
Less: Return Inward 3,000 By Closing Stock By Gross Loss c/d (Balancing Fig.) |
1,61,000
14,500 5,000 |
| 1,80,500 | 1,80,500 | ||
| Dr. Profit & Loss till March 31st, 2018 Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| To Gross Loss b/d
To Repairs 500 And: Unpaid Rent 400 |
5,000
900 |
By Net Loss c/d
(Balancing Fig.) |
27,900 |
| To Rent | 4,000 | ||
| To Miscellaneous Expenses
To Bad Debts 2,000 Add:Added Bad Debts 5,000 |
7,000
7,000 |
||
| To Depreciation On:
Machine & Plant |
4,000 | ||
| 27,900 | 27,900 | ||
QUESTION 3
Arrange Trading and Balance Sheet till March 31st, 2018.
| ₹ | ₹ | ||
| Machinery
Bak cash Hand cash Wages Purchase On April 1st, 2017 stock available Sundry Debtors Bills Receivable Rent Commission General Expenses Salaries |
4,00,000
1,00,000 50,000 1,00,000 8,00,000 6,00,000 4,40,000 2,90,000 45,000 25,000 80,000 50,000 |
Capital
Sales Sundry Creditors Interest Received |
9,00,000
16,00,000 4,50,000 30,000 |
| 29,80,000 | 29,80,000 |
Added Information.
(i) Salaries due were ₹25,000
(ii) Machine Depreciation ₹10%
(iii) Due wages were ₹5,000
(iv) Prepaid Rent ₹10,000
(v) capital Interest 5% p.a
(vi) Stock on March 31st, 2018 ₹8,00,000
Solution.
| Dr. Trading Account till March 31st, 2018 Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| To Opening Stock
To Wages 1,00,000 Add: Due wages 5,000 To Purchase By Gross Profit c/d (Balancing Fig.) |
6,00,000
1,05,000 8,00,000 8,95,000 |
By Sales
By Closing Stock |
16,00,000
8,00,000 |
| 24,00,000 | 24,00,000 | ||
| Balance Sheet till March 31st, 2018 | |||
| Liabilities | ₹ | Assets | ₹ |
| Capital 9,00,000
Add: Capital Interest 45,000 Add : Net Profit 6,05,000 |
15,50,000 | Fixed Assets
Machine 4,00,000 Less: Depreciation 10% 40,000 |
3,60,000 |
| Current Liabilities
Sundry Creditors Due Salary Due Wages |
4,50,000
45,000 5,000 |
Current Asset
Closing Stock Sundry Debtors Rent Prepaid Bank cash Receivable Bills Cash in Hand |
8,00,000
4,40,000 10,000 1,00,000 2,90,000 50,000 |
| 20,50,000 | 20,50,000 | ||
QUESTION 4
From the below-mentioned trial balance of M/s Shakti till March 31st, 2018. Arrange Profit & Loss and Trading Account.
| Heads of Account | Dr. (₹) | Cr. (₹) |
| Capital
Drawings Sales Purchase On April 1st, 2017 stock available Return Outward Carriage Inward Wages Power Machinery Furniture Rent Salary Insurance Bank Loan 8% Debtors Creditors Cash in Hand |
18,000
82,600 42,000 1,200 4,000 6,000 50,000 14,000 22,000 15,000 3,600 20,600 1,500 |
80,000
1,55,000 1,600 25,000 18,900 |
| 2,80,500 | 2,80,500 |
Few other added points are given below.
(i) Stock ₹64,000 was on closing
(ii) Due wages ₹2,400
(iii) Bad Debts ₹600
(iv) Doubtful DEbt provision to be 5%
(v) Paid 11 months rent
(vi) Paid insurance premium per annum, ended 31st May 2018
(vii) On 1st October 2017, a loan was taken from a bank.
(viii) Machine depreciation @10% and on Furniture @5%
Solution.
| Financial statement of M/s Shakti
Dr. Trading Account till March 31st, 2018 Cr. |
|||
| Particulars | ₹ | Particulars | ₹ |
| To Opening Stock
To Purchase 82,600 Less: Return Outward 1,600 To Carriage Inward To Wages 4,000 Add: Due Wages 2,400 To Power To Gross Profit c/d (Balancing Fig.) |
42,000
81,000 1,200 6,400 6,000 82,400 |
By Sales
By Closing Stock |
1,55,000
64,000 |
| 2,19,000 | 2,19,000 | ||
| Dr. Profit & Loss till March 31st, 2018 Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| To Salary
To Rent 22,000 Add: O/s for 1 month 2,000 (22,000×11) To O/s bank loan interest (25,000×8%x6/12) To Bad Debts 600 Add: Provision for 1,000 doubtful debts To Insurance 3,600 Less: Prepaid 2 months (600) (3,600 x 2/12) To Depreciation on: Machin 5000 Furniture 700 To Net Profit c/d (Balancing Fig.) |
15,000
24,000 1,000 1,600 3,000 5,700 32,100 |
By Gross Profit b/d | 82,400 |
| 82,400 | 82,400 | ||
QUESTION 5
From the below-mentioned trial balance till March 31st, 2018 . Arrange Trading and account.
| Particulars | Dr. (₹) | Particulars | Cr. (₹) |
| On April 1st, 2017 stock available
Furniture Plant & Machinery Debtors Wages Salaries Bad Debts Purchase Electricity charges Telephone charges General Expenses Postage Expenses Returns Inward Insurance Premium Cash in Hand Cash in Bank |
25,000
8,000 1,50,000 30,000 12,000 20,000 1,000 1,20,000 1,200 2,400 3,000 1,800 900 1,500 2,500 40,000 |
Sales
Commission Returns Outward Creditors Capital |
2,27,800
500 1,000 40,000 1,50,000 |
| 4,19,300 | 4,19,300 |
Added requirement
(i) Stock ₹7,000 on closing
(ii) Wages due liabilities ₹600 and salaries ₹1,400
(iii) Depreciation on all fixed assets @ 5%
(iv) Plant & Machine machine purchased @ ₹10,000 on1st October, 2017
(v) ₹200 advance paid for insurance premium
Solution:
| Dr. Trading Account Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| Opening Stock
Wages 1,200 Add: Due wages 600 Purchase 1,20,000 Less: Return 1,000 |
25,000
12,600 1,19,000 77,300 |
Sales 2,27,800
Less: Returns 900 Closing Stock |
2,26,000
7,000 |
| 2,33,900 | 2,33,900 | ||
QUESTION 6
From the below-mentioned balance extracted from Nalia’s book till March 31st, 2018 . Arrange Trading account.
| Particulars | ₹ | Particulars | ₹ |
| Nalia’s Capital
Nalia’s Drawings Furniture & Fittings Bank Overdraft Creditors Business Premises On April 1st, 2017 stock available Debtors Rent from Tenants Purchase |
3,00,000
50,000 26,000 42,000 1,38,000 2,00,000 2,20,000 1,80,000 10,000 11,00,000 |
Sales
Sales Return Discount (Dr.) Discount (Cr.) Insurance General Expenses Salaries Commission (Dr.) Carriage on Purchase Bad Debts written off |
15,00,000
20,000 16,000 20,000 20,000 40,000 90,000 22,000 18,000 8,000 |
Added Information.
(i) Stock ₹2,00,600 on closing
(ii) Depreciation: business premises ₹3,000 and furniture & Fittings ₹2,500
(iii) Doubtful Debt 5%
(iv) Carry forward ₹2000 for unexpired insurance
(v) Salary due ₹15,000
Solution.
| Dr. Trading Account Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| Opening Stock
Purchase Carriage on Purchase Gross Profit |
2,20,000
11,00,000 18,000 3,42,000 |
Sales 15,00,000
Less: Return 20,000 Closing Stock |
14,80,000
2,00,600 |
| 16,80,600 | 16,80,600 | ||
QUESTION 7
From the below-mentioned balance extracted from Nilu ’s book till March 31st, 2018. Arrange Trading account.
| Particulars | ₹ | Particulars | ₹ |
| Capital
Opening Stock Furniture sales Purchase Return Rent Salaries Bad Debts Sundry Debtors Bill Payable Advertisement Patent |
1,20,000
45,000 1,500 4,35,000 4,000 5,000 24,000 1,000 40,000 800 6,000 4,800 |
Drawings
Machine & Plant Purchase Insurances Sales Return Trade Expenses Wages 6% Investments Sundry Creditors Cash Miscellaneous Receipt |
21,000
24,000 2,95,000 1,500 7,000 2,000 40,000 50,000 19,000 12,200 1,200 |
Adding Elements.
(i) Stock ₹75,000 on closing
(ii) Depreciation machine 10% and furniture 20%
(iii) Salary ₹2,000 and wages ₹5,000 due
(iv) Bad Debt ₹5,000 and create 5% doubtful debt
(v) No interest received for the investment made on 1st July 2017
Solution.
| Dr. Trading Account Cr. | |||
| Particulars | ₹ | Particulars | ₹ |
| To Opening Stock
To Purchase 2,95,000 Less: Purchase return 4,000 To Wages 40,000 Add:Due Wages 5,000 To Gross Profit c/d (Balancing Fig.) |
45,000
2,91,000 45,000 1,22,000 |
By Sales 4,35,000
Less: Sales Return (7,000) By Closing Stock |
4,28,000
75,000 |
| 5,03,000 | 5,03,000 | ||