Class 11 Accountancy Chapter 14 - Adjustments in Preparation of Financial Statements

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.

Class 11 TS Grewal Solutions Accountancy Chapter 14:-Download PDF Here

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

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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

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