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NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce PDF Download

Q9: From the following balances of M/s Jyoti Exports, prepare trading and profit and loss account for the year ended March 31, 2017 and balance sheet as on this date.

NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceClosing stock Rs 10,000.
1. To provision for doubtful debts is to be maintained at 5 per cent on sundry debtors.
2. Wages amounting to Rs 500 and salary amounting to Rs 350 are outstanding.
3. Factory rent prepaid Rs 100.
4. Depreciation charged on Plant and Machinery @ 5% and Building @ 10%.
5. Outstanding insurance Rs 100.
Ans:
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNote: As per solution Net Profit is Rs 15,890 and Total of the Balance Sheet is Rs 76,940. However, NCERT shows Net Profit Rs 15,895 and Total of the Balance Sheet Rs 76,945.

Q10: The following balances have been extracted from the books of M/s Green House for the year ended December 31, 2017, prepare trading and profit and loss account and balance sheet as on this date.
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerceadjustments : 
(a) Machinery is depreciated at 10% and buildings depreciated at 6%. 
(b) Interest on capital @ 4%. 
(c) Outstanding wages Rs 50. 
(d) Closing stock Rs 50,000. 

Ans:
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce
Question.11 : From the following balances extracted from the book of M/s Manju Chawla on March 31, 2017. You are requested to prepare the trading and profit and loss account and a balance sheet as on this date.
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceClosing stock was Rs 2,000.
(a) Interest on drawings @ 7% and interest on capital @ 5%.
(b) Land and Machinery is depreciated at 5%.
(c) Interest on investment @ 6%.
(d) Unexpired rent Rs 100.
(e) Charge 5% depreciation on furniture.
Answer :
Trading Account
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceProfit and Loss Account 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceBalance Sheet 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNote: In the NCERT textbook, the answer provided for question number 11 is different from the solution. However, the answer should be
Gross profit = Rs 22,400 instead of Rs 21,900
Net profit = Rs 24,985 instead of Rs 25,185
Total of Balance Sheet = Rs 72,945 instead of Rs 71,185

Q12: The following balances were extracted from the books of M/s Panchsheel Garments on  March 31, 2017. 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommercePrepare the trading and profit and loss account for the year ended March 31, 2017 and a balance sheet as on that date.
(a) Unexpired insurance Rs 1,000.
(b) Salary due but not paid Rs 1,800.
(c) Wages outstanding Rs 200.
(d) Interest on capital 5%.
(e) Scooter is depreciated @ 5%.
(f) Furniture is depreciated Rs @ 10%.
Answer : Trading Account
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce
Profit and Loss Account 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceBalance Sheet 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce
Q13: Prepare the trading and profit and loss account and balance sheet of M/s Control Device India on December 31, 2017 from the following balance as on that date.
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceClosing stock was valued Rs 20,000.
(a) Interest on capital @ 10%.
(b) Interest on drawings @ 5%.
(c) Wages outstanding Rs 50.
(d) Outstanding salary Rs 20.
(e) Provide a depreciation @ 5% on plant and machinery.
(f) Make a 5% provision on debtors.
Ans: 
Trading Account
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceProfit and Loss Account 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce
Balance Sheet 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce
Q14: The following balances appeared in the trial balance of M/s Kapil Traders as on March 31, 2017
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceThe partners of the firm agreed to records the following adjustments in the books of the Firm: Further bad debts Rs.300. Maintain provision for bad debts 10%. Show the following adjustments in the bad debts account, provision account, debtors account, profit and loss account and balance sheet.
Ans:
Profit and Loss Account 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceBad Debts Account
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce
Q15: Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on December 31, 2017
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce

Adjustments:
Bad Debts Rs 500 Provision on Debtors @ 3%.
Ans:

NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce

Balance Sheet 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceBad Debts Account 
NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - CommerceNote: In this case, the old provision exceeds the sum total of Bad debts and the New Provision. Thus, the balancing figure is Rs 115 and is calculated as Rs 2,500 + Rs 2,385 – Rs 5,000 = Rs (115)

The document NCERT Solution (Part - 3) - Financial Statements - II | Accountancy Class 11 - Commerce is a part of the Commerce Course Accountancy Class 11.
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FAQs on NCERT Solution (Part - 3) - Financial Statements - II - Accountancy Class 11 - Commerce

1. What are the key components of a financial statement?
Ans. The key components of a financial statement include the income statement, balance sheet, cash flow statement, and statement of changes in equity. The income statement shows the company's revenues and expenses, the balance sheet provides a snapshot of assets, liabilities, and equity, the cash flow statement tracks cash inflows and outflows, and the statement of changes in equity outlines changes in equity during the accounting period.
2. How do financial statements help in decision-making for a business?
Ans. Financial statements provide crucial information about a company's financial health, performance, and cash flow. They help stakeholders, including management, investors, and creditors, make informed decisions regarding investments, creditworthiness, and operational strategies. By analyzing trends and ratios from these statements, stakeholders can assess profitability, liquidity, and financial stability.
3. What is the difference between the cash flow statement and the income statement?
Ans. The cash flow statement focuses on the actual cash inflows and outflows of a company during a specific period, categorizing them into operating, investing, and financing activities. In contrast, the income statement records revenues and expenses, showing the net income or loss for the period, regardless of whether cash has been received or paid. This means that the income statement includes non-cash items, while the cash flow statement does not.
4. Why is it important to prepare financial statements at the end of an accounting period?
Ans. Preparing financial statements at the end of an accounting period is essential for providing a clear and accurate representation of a company's financial position and performance. It helps in compliance with legal requirements, facilitates the assessment of business performance over time, and provides necessary information to stakeholders for making strategic decisions. Additionally, it aids in tax reporting and securing financing.
5. What role do financial ratios play in analyzing financial statements?
Ans. Financial ratios are vital tools for analyzing financial statements as they provide insights into a company's operational efficiency, profitability, liquidity, and solvency. Ratios such as the current ratio, debt-to-equity ratio, and return on equity allow stakeholders to compare the company's performance against industry benchmarks or previous periods. This analysis helps in identifying strengths and weaknesses, guiding investment and management decisions.
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