TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements 2023-24

TS Grewal Class 11 Accountancy Solutions Chapter 14: Financial statements and their importance is the topic which is important not just for 11th class, but for 12th class as well.  A precise financial statement must be prepared by the students and to understand that TS Grewal Class 11 Accountancy Solutions has given different easy methods. TS Grewal explains the student in such a way that they a precise statement. 

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TS Grewal Class 11 Accountancy Solutions Chapter 14

Detailed Explanation for Chapter 14 – Adjustments in Preparation of Financial Statements, TS Grewal Class 11 Accountancy Solutions

Answering the first part, i.e., the meaning of a financial statement, TS Grewal Class 11 Accountancy Solutions explains a financial statement like a formal statement that shows all the financial activities of a firm or a company. It guides you for future investment in a business. 

An introductory financial statement begins with keeping daily entries like book keeping. At the end of the month, you can pull and organize the data from the records and get your financial statements together. 

Points to remember: 

TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements has given the following points to remember while preparing a financial statement. 

1. Every financial statement you see will tell you a different scenario about the business. Each financial report consists of different combinations of information that require unique insights into a business. 
2. While preparing a financial statement, remember it will reflect on the real-life events of your firm/company, be it profit or loss. 
3. You will get to know a lot of business and financial jargon that might be hard to understand at first. TS Grewal Class 11 Accountancy Solutions prepares you for that. 
4. Many things are going behind the scenes of financial reporting which you may not convey into numbers alone. For that keep footnotes handy all the time. 

TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements: Sample Questions 

Sample question 1:

The table shows the balances extracted from the books of Manish Gupta on 31^st March 2018.

	Rs.		Rs.
Capital	1,90,000	Cash at bank	26,000
Drawing	7,000	Salaries	8,000
Plant & machinery	1,20,000	Repairs	1,900
Delivery Vehicle	26,000	Stock on 1st April 2017	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	1,600

Prepare a Trading, Profit and Loss Account and Balance Sheet as of 31^st March 2018 after the following changes have been made:

1. The closing stock was Rs. 16,000.
2. Depreciate Plant & Machinery at the rate of 10% and delivery vehicle at the rate of 15%.
3. Unpaid rent amounted to Rs. 500.

Answer:

Trading Account

For the year ended 31^st March 2018

                                                                                                                                                                   Dr.                                                                                                                                                   Cr.

Particulars	Rs.	Particulars	Rs.
To Opening stock	16,000	By sales	42,000
To Purchases	20,000	By closing stock	16,000
To Wages	8,000
To Manufacturing expenses	1,500
To Carriage	1,600
To Gross profit c/d	10,900
	58,000		58,000

Profit and loss account

For the year ended 31^st March 2018

                                                                                                                                                                  Dr.                                                                                                                                                    Cr.

Particulars	Rs.	Particulars	Rs.
To Salaries	8,000	By Gross profit b/d	10,900
To Repairs	1,900	By Net Loss c/d	24,900
To Rent                                    4,500
Add unpaid rent                       500	5,000
To Bad debts	5,000
To Depreciation On
To Plant & machinery    12,000
To Delivery Vehicle           3,900	15,900
	35,800		35,800

Balance sheet as of 31^st March 2018

Liabilities	Rs.	Assets	Rs.
Capital            1,90,000		Fined assets:
Less: Drawings   7,000    Less: Net loss   24,900	1,58,100	Plant & machinery         1,20,000    Less: 10% dep.                   12,000 Delivery Vehicle                26,000 Less: 15% dep.                      3,900	1,08,000     22,100
Current Liabilities		Current Assets
Sundry Creditors	26,000	Closing stock	16,000
Bills payable	23,500	Sundry Debtors	36,000
Unpaid Rent	500	Cash at bank	26,000
	2,08,100		2,08,100

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