Ques 40 Adjustments in preparation of financial Statements Ch 19 : Class 11 Accounts TS Grewal

The following is the trial balance of Ashok on 31st March, 2026: Capital 30000 Sales 529500 Building 150000 Purchases (Adjusted) 290000 Wages Outstanding (At the end) 8000 Provision for Depreciation on Furniture 12,000 Apprentice Premium 500 Salaries 5000 Bad Debts 2000 Wages 10000 Sundry Creditors 20000 Rent 5000 Prepaid Rent (At the end) 3,000 Insurance 5,000 Furniture (At cost) 60000 Drawings 5,000 Sundry Debtors 25,000 Closing Stock 40000 Prepare Trading and Profit & Loss Account for the year ended 31st March, 2025 and Balance Sheet as on that date after making the following adjustments: Salaries for the month of March, 2025 of? 1,000 were unpaid which are to be provided. Balance in the account included 800 paid in advance. Insurance is prepaid to the extent of 2,000. Depreciate Furniture by 10% on original cost and Building by 5%. Stock of 1,500 was taken by Ashok for his personal use. Make a Provision for Doubtful Debts equal to 10% of Sundry Debtors. [Ans.: Gross Profit 2,31,000; Net Profit 2,00,300; Balance Sheet Total 2,52,800.]