Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Get complete step-by-step solutions for T.S. Grewal ISC Class 11 Accountancy - Chapter 20 - Final Accounts with Adjustments. Study double-entry system details, practice timed problems, and verify answers directly.
Following are the balances extracted from the books of Manish on 31st March, 2023:
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| Capital | 1,90,000 | Cash at Bank | 26,000 |
| Drawings | 7,000 | Salaries | 8,000 |
| Plant and Machinery | 1,20,000 | Repairs | 1,900 |
| Delivery Vehicle | 26,000 | Stock on 1st April, 2021 | 16,000 |
| Sundry Debtors | 36,000 | Rent | 4,500 |
| Sundry Creditors | 26,000 | Manufacturing Expenses | 1,500 |
| Purchases | 20,000 | Bills Payable | 23,500 |
| Sales | 42,000 | Bad Debts | 5,000 |
| Wages | 8,000 | Carriage Inwards | 1,600 |
Prepare Trading and Profit & Loss Account and Balance Sheet as at 31st March, 2023 after following adjustments are made: (i) Closing Stock was ₹ 16,000. (ii) Depreciate Plant and Machinery @ 10% and Delivery Vehicle @ 15%. (iii) Unpaid Rent amounted to ₹ 500.
Note: The Gross Profit (₹ 10,900) is smaller than the total indirect expenses below it, so the final result is a Net Loss even though the Trading Account itself shows a profit.
Trading Account for the year ended 31st March, 2023
| Dr. | Cr. | ||
|---|---|---|---|
| Particulars | ₹ | Particulars | ₹ |
| To Opening Stock | 16,000 | By Sales | 42,000 |
| To Purchases | 20,000 | By Closing Stock | 16,000 |
| To Wages | 8,000 | ||
| To Carriage Inwards | 1,600 | ||
| To Manufacturing Expenses | 1,500 | ||
| To Gross Profit c/d | 10,900 | ||
| Total | 58,000 | Total | 58,000 |
Profit & Loss Account for the year ended 31st March, 2023
| Dr. | Cr. | ||
|---|---|---|---|
| Particulars | ₹ | Particulars | ₹ |
| To Salaries | 8,000 | By Gross Profit b/d | 10,900 |
| To Repairs | 1,900 | By Net Loss (transferred to Capital A/c) | 24,900 |
| To Rent (4,500 + 500 Outstanding) | 5,000 | ||
| To Bad Debts | 5,000 | ||
| To Depreciation: Plant and Machinery | 12,000 | ||
| To Depreciation: Delivery Vehicle | 3,900 | ||
| Total | 35,800 | Total | 35,800 |
Balance Sheet as at 31st March, 2023
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Capital (1,90,000 − 24,900 Net Loss − 7,000 Drawings) | 1,58,100 | Plant and Machinery (1,20,000 − 12,000 Depreciation) | 1,08,000 |
| Sundry Creditors | 26,000 | Delivery Vehicle (26,000 − 3,900 Depreciation) | 22,100 |
| Bills Payable | 23,500 | Sundry Debtors | 36,000 |
| Outstanding Rent | 500 | Closing Stock | 16,000 |
| Cash at Bank | 26,000 | ||
| Total | 2,08,100 | Total | 2,08,100 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.