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 – Adjustments in Preparation of Financial Statements | Download Free PDF
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.
- 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.
- While preparing a financial statement, remember it will reflect on the real-life events of your firm/company, be it profit or loss.
- 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.
- 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 31st 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 31st March 2018 after the following changes have been made:
- The closing stock was Rs. 16,000.
- Depreciate Plant & Machinery at the rate of 10% and delivery vehicle at the rate of 15%.
- Unpaid rent amounted to Rs. 500.
Answer:
Trading Account
For the year ended 31st 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 31st 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 31st 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 |
We have included complete information regarding CBSE TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements. If you have any queries regarding the Class 11 Accountancy exam, you can ask in the comment box.
FAQs: TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements
What is a financial statement?
A financial statement is 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.
What are the steps to prepare a financial statement?
The steps to prepare a financial statement are as follows:
1. Analyzing and recording transactions.
2. Posting the transactions to the ledger.
3. Preparing an unadjusted trial balance.
4. Prepare to adjust entries at the end of the time.
5. Preparing an adjusted trial balance.
6. Preparing financial statements.
What are the uses of a financial statement?
A financial statement can be used for:
1. For stock trading.
2. For deciding the taxation and regulation policy by the government.
3. Useful for investors in the decision-making process.
Determining the final position of a business.
Can I download TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements free PDF?
Yes, you can download TS Grewal Class 11 Accountancy Solutions Chapter 14 – Adjustments in Preparation of Financial Statements free PDF.