Commerce Exam > Commerce Notes > TS Grewal Solutions - Class 11 Accountancy > Financial Statements Of Sole Proprietorship - (Part - 1)
Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce PDF Download
Page No 18.62:
Question 1: State whether the following expenses are capital or revenue in nature:
(i) Expenses on whitewashing and painting of a building purchased to make it ready for use.
(ii) ₹ 10,000 spent on constructing platform for a new machine.
(iii) Repair expenses of ₹ 25,000 incurred for whitewashing of factory building.
(iv) Insurance premium paid as renewal premium.
(v) Purchased a new car.
ANSWER:
(1) Capital Expenditure: Paid to make an asset ready to use
(2) Capital Expenditure: Paid to make an asset ready to us
(3) Revenue Expenditure: Made for the maintenance of asset
(4) Revenue Expenditure: Part of normal operating cost
(5) Capital Expenditure: Used in business for a number of years
Page No 18.62:
Question 2: State with reasons whether the following are Capital or Revenue Expenses:
(i) Excise duty paid on purchase of new machine.
(ii) Wages paid to install a machine.
(iii) Repairs carried out on existing car.
(iv) Office block of building repainted for ₹ 50,000.
(v) Paid telephone bill ₹ 2,500.
ANSWER:
(1) Capital Expenditure: Paid for the acquisition of new asset
(2) Capital Expenditure: Paid to make the asset ready to use
(3) Revenue Expenditure: Paid for the running and maintenance of car
(4) Revenue Expenditure: Paid for the maintenance of Building
(5) Revenue Expenditure: Part of normal operating cost
Page No 18.62:
Question 3: From the following information, determine Gross Profit for the year ended 31st March, 2019:
ANSWER:
Gross Profit
= Sales + Closing Stock – (Opening Stock + Freight and Packing + Goods Purchased)
=1,90,000 + 30,000 – (25,000 + 10,000 + 1,40,000)
=2,20,000 – 1,75,000 = ₹45,000
Alternatively,
Note: Packing Expenses (Rs 6,000) on Sales is an Indirect Expense, therefore it is not considered to compute the amount of Gross Profit
Page No 18.62:
Question 4: Calculate Closing Stock from the following details:
ANSWER:
Page No 18.62:
Question 5: Prepare Trading Account from the transactions givne below:
Also pass the Journal entries.
ANSWER:
Note: Depreciation is an Indirect Expense, therefore it is not shown in the Trading Account.
The document Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce is a part of the Commerce Course TS Grewal Solutions - Class 11 Accountancy.
All you need of Commerce at this link: Commerce
FAQs on Financial Statements Of Sole Proprietorship - (Part - 1) - TS Grewal Solutions - Class 11 Accountancy - Commerce
| 1. What are financial statements of a sole proprietorship? |  |
Ans. Financial statements of a sole proprietorship are formal records that present the financial activities and performance of a business owned and operated by a single individual. These statements include the income statement, balance sheet, and cash flow statement, which provide a comprehensive overview of the business's financial health.
| 2. Why are financial statements important for a sole proprietorship? | |
Ans. Financial statements are crucial for a sole proprietorship as they help in assessing the profitability, liquidity, and overall financial position of the business. They provide valuable insights into the revenue, expenses, assets, and liabilities, enabling the owner to make informed decisions, attract investors, obtain loans, and comply with legal requirements.
| 3. How often should financial statements be prepared for a sole proprietorship? | |
Ans. The frequency of preparing financial statements for a sole proprietorship depends on various factors such as the size of the business, industry standards, and legal requirements. Generally, small sole proprietorships prepare financial statements annually, while larger businesses may produce them quarterly or semi-annually. However, it is advisable to consult with an accountant or financial advisor to determine the appropriate frequency.
| 4. What information is included in an income statement for a sole proprietorship? | |
Ans. An income statement for a sole proprietorship includes information about the revenues, expenses, and net income of the business over a specific period. It provides a breakdown of the sales, cost of goods sold, operating expenses, and other income or expenses. The net income or loss is calculated by subtracting the total expenses from the total revenue, indicating the profitability of the business.
| 5. How can a sole proprietorship use financial statements to evaluate its performance? | |
Ans. Financial statements allow a sole proprietorship to evaluate its performance by analyzing various financial ratios and indicators. For example, the gross profit margin helps assess the profitability of the business, while the current ratio indicates its liquidity. By comparing these ratios with industry benchmarks or previous periods, the owner can identify strengths, weaknesses, and areas for improvement within the business.
Related Exams
About this Document
|
4.96/5 Rating |
|
Nov 08, 2024 Last updated |
Document Description: Financial Statements Of Sole Proprietorship - (Part - 1) for Commerce 2024 is part of TS Grewal Solutions - Class 11 Accountancy preparation.
The notes and questions for Financial Statements Of Sole Proprietorship - (Part - 1) have been prepared according to the Commerce exam syllabus. Information about Financial Statements Of Sole Proprietorship - (Part - 1) covers topics
like and Financial Statements Of Sole Proprietorship - (Part - 1) Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Financial Statements Of Sole Proprietorship - (Part - 1).
Introduction of Financial Statements Of Sole Proprietorship - (Part - 1) in English is available as part of our TS Grewal Solutions - Class 11 Accountancy
for Commerce & Financial Statements Of Sole Proprietorship - (Part - 1) in Hindi for TS Grewal Solutions - Class 11 Accountancy course.
Download more important topics related with notes, lectures and mock test series for Commerce
Exam by signing up for free. Commerce: Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce
Description
Full syllabus notes, lecture & questions for Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for TS Grewal Solutions - Class 11 Accountancy | Best notes, free PDF download
Information about Financial Statements Of Sole Proprietorship - (Part - 1)
In this doc you can find the meaning of Financial Statements Of Sole Proprietorship - (Part - 1) defined & explained in the simplest way possible. Besides explaining types of
Financial Statements Of Sole Proprietorship - (Part - 1) theory, EduRev gives you an ample number of questions to practice Financial Statements Of Sole Proprietorship - (Part - 1) tests, examples and also practice Commerce
tests
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Semester Notes
,shortcuts and tricks
,Objective type Questions
,mock tests for examination
,Exam
,Summary
,Free
,Extra Questions
,practice quizzes
,ppt
,Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce
,MCQs
,video lectures
,Viva Questions
,Previous Year Questions with Solutions
,study material
,past year papers
,Important questions
,Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce
,Sample Paper
,Financial Statements Of Sole Proprietorship - (Part - 1) | TS Grewal Solutions - Class 11 Accountancy - Commerce
;
Additional Information about Financial Statements Of Sole Proprietorship - (Part - 1) for Commerce Preparation
Financial Statements Of Sole Proprietorship - (Part - 1) Free PDF Download
The Financial Statements Of Sole Proprietorship - (Part - 1) is an invaluable resource that delves deep into the core of the Commerce exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Financial Statements Of Sole Proprietorship - (Part - 1) now and kickstart your journey towards success in the Commerce exam.
Importance of Financial Statements Of Sole Proprietorship - (Part - 1)
The importance of Financial Statements Of Sole Proprietorship - (Part - 1) cannot be overstated, especially for Commerce aspirants.
This document holds the key to success in the Commerce exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Financial Statements Of Sole Proprietorship - (Part - 1) Notes
Financial Statements Of Sole Proprietorship - (Part - 1) Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Financial Statements Of Sole Proprietorship - (Part - 1).
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Financial Statements Of Sole Proprietorship - (Part - 1) Notes on EduRev are your ultimate resource for success.
Financial Statements Of Sole Proprietorship - (Part - 1) Commerce Questions
The "Financial Statements Of Sole Proprietorship - (Part - 1) Commerce Questions" guide is a valuable resource for all aspiring students preparing for the
Commerce exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Financial Statements Of Sole Proprietorship - (Part - 1) on the App
Students of Commerce can study Financial Statements Of Sole Proprietorship - (Part - 1) alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Financial Statements Of Sole Proprietorship - (Part - 1),
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Financial Statements Of Sole Proprietorship - (Part - 1) is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup