Cheat sheet · Class 11 · CBSE · Commerce Accountancy
Financial Statements – II cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 11 · Accountancy
Cheat sheet
Chapter 9Financial Statements – II
Every adjustment touches two places — usually an account and the balance sheet.
1. Adjustments
| Adjustment | P&L / Trading | Balance sheet |
|---|---|---|
| Closing stock | credit Trading A/c | current asset |
| Outstanding expense | add to expense | current liability |
| Prepaid expense | deduct from expense | current asset |
| Accrued income | add to income | current asset |
| Income received in advance | deduct from income | current liability |
| Depreciation | debit P&L | deduct from asset |
| Bad debts / provision | debit P&L | deduct from debtors |
| Interest on capital | debit P&L | add to capital |
| Interest on drawings | credit P&L | deduct from capital |
2. Provision for Doubtful Debts
Debtors ₹50 000, bad debts ₹2 000, new provision 5%: provision = 5% × 48 000 = ₹2 400.
3. Others
- Manager's commission on net profit before/after charging it.
- Goods taken for personal use: reduce purchases, add to drawings.
- Abnormal loss: credit Trading, debit P&L (less insurance claim).
4. Key Points
- Adjustments given outside the TB are shown twice.
- Items inside the TB appear once.
- Commission after charge: NP × rate / (100 + rate).
- Accrual concept underlies adjustments.
Remember: Adjustment table | provision for doubtful debts | manager's commission
Financial Statements – II: questions and notes
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