Ques 41 Adjustments in preparation of financial Statements Ch 19 : Class 11 Accounts TS Grewal

On 31st March 2025 following trial balance was prepared from the books of Manpreet: Capital 100000 Fumiture 3400 Discount recelved 2000 Bank Loan 10000 Bulding 21700 Drawings 4200 Cash at Bank 2470 Purchases Return 970 Wages 31,250 Sales 1,91,940 Discount Allowed 2,640 Sundry Creditors 12,450 Bank Charges 90 Provision for Doubtful Debts 800 Salaries 5,610 Purchases 1,32,700 Opening Stock 40,200 Cash in Hand 2,650 Sales Return 1,250 Carriage lnwards 3,400 Machinery 14,600 Sundry Debtors 43,800 Bad Debts 1,000 Insurance 1,250 Rent 2,450 Advertisement 3,500 Prepare Trading and Profit & Loss Account for the year ended 31st March, 2025 and also the Balance Sheet as at that date after making the following adjustments: (i) Closing Stock at cost was 35,000 whereas its net realisable value (market value) was 30,000. (ii) A new machine was purchased for 3,000 on 1st April, 2024 but it was not paid for and entry was not recorded in the books. (iii) Wages include 500 paid for the installation of machinery. (iv) Provision for Doubtful Debts was raised to 1,400 and further bad debts of R 300 were written off. (v) Fire broke out on 20th March, 2025 and destroyed stock to the value of 8,000. The insurance company admitted claim for loss of stock of? 5,000 and the amount was paid on 15th April, 2025. (vi) Outstanding wages were 700 while outstanding salaries were 500. (vii) Prepaid insurance was 250 and prepaid advertisement 500. (Uui) Machinery was depreciated by 10% and furniture by 15%. (Ans.: Gross Profit- 21,910; Net Profit-R 1, 400: Balance Sheet Total- 1, 23, 850.