Commerce Exam  >  Commerce Notes  >  Accountancy Class 11  >  Financial Statements of Sole Proprietorship - (Part - 2)

Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce PDF Download

Page No 18.63:

Question 6: Ascertain Gross Profit from the following:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Note: Carriage on Sales and Office Rent are the Indirect Expenses, therefore, these are not considered to compute the amount of Gross Profit.

Page No 18.63:

Question 7: From the following information, prepare Trading Account for the year ended 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Net Realisable Value (Market Value) of stock as on 31st March, 2019 was ₹ 1,20,000.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Note: Closing Stock is taken at its Market Price (i.e. Rs 1,20,000) instead of its Cost (i.e. Rs 1,30,000). This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.

Page No 18.63:

Question 8: From the following information, prepare Trading Account for the year ended 31st March, 2019:
Adjusted Purchases ₹ 6,60,000; Sales ₹ 7,44,000; Closing Stock ₹ 50,400; Freight and Carriage Inwards ₹ 3,600; Wages ₹ 6,000; Freight and Cartage Outwards ₹ 2,000.

ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Notes:
1. Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.
2. Closing Stock (i.e. Rs 50,400) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases.

Page No 18.63:

Question 9: Following balances appear in the Trial Balance of a firm as on 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Prepare Trading Account of the firm.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Note: Freight outwards is an indirect expense. It will be recorded in Profit & Loss A/c.


Page No 18.63:

Question 10: From the following information, prepare Trading account for the year ended 31st March, 2019:
Adjusted Purchases ₹ 5,50,000; Sales ₹ 6,25,000; Freight and Carriage Inwards ₹ 3,000; Wages ₹ 7,000; Freight and Cartage Outwards ₹ 2,500; Closing Stock ₹ 50,000.

ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Notes:

1. Freight and Carriage Outwards are indirect expenses, therefore it is not recorded in the Trading Account.
2. Closing Stock (i.e. Rs 50,000) is not recorded in the Trading Account as it is already adjusted in the amount of Adjusted Purchases


Page No 18.64:

Question 11: From the following figures, calculate Operating Profit:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

ANSWER:

Operating Profit=Net Profit−Rent Received−Gain on Sale of Machine+Interest on Loan−Donation =1,00,000−10,000−15,000+20,000−2,000=Rs 93,000

Page No 18.64:

Question 12: From the following, prepare Profit and Loss Account of Sohan Lal as it would appear in the 1st year that ended 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
The Gross Profit was 45% of sales, which amounted to ₹ 6,50,000.

Also, pass the Journal entries.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce


Page No 18.64:

Question 13: From the following information, prepare Profit and Loss Account for the year ended 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Note: ₹1,000 Input IGST after adjusting against Output IGST will be shown on the asset side of the balance sheet.

Page No 18.64:

Question 14: From the following particulars, prepare Balance Sheet as at 31st March, 2019:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Page No 18.65:

Question 15: From the following information, prepare Balance Sheet of a trader as at 31st March, 2019 arranging the assets and liabilities–(i) in order of permanence and (ii) in order of liquidity:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

ANSWER:

(I) Balance Sheet in Order of Permanence
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
(II) Balance Sheet in Order of Liquidity
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Page No 18.65:

Question 16: From the Balance Sheet given below, calculate:
(i) Fixed Assets
(ii) Current Assets

(iii) Current Liabilities
(iv) Working Capital

Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce


Page No 18.65:

Question 17: Prepare Trading and Profit and Loss Account and Balance Sheet of Jagat Shah as at 31st March, 2019 from the following balances:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
The Closing Stock was valued at ₹ 2,00,000.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

Page No 18.66:

Question 18: From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Closing Stock was valued at ₹ 30,000.
ANSWER:
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce
Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

The document Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce is a part of the Commerce Course Accountancy Class 11.
All you need of Commerce at this link: Commerce
82 videos|156 docs|42 tests

Top Courses for Commerce

FAQs on Financial Statements of Sole Proprietorship - (Part - 2) - Accountancy Class 11 - Commerce

1. What are the main financial statements of a sole proprietorship?
Ans. The main financial statements of a sole proprietorship are the income statement, balance sheet, and statement of cash flows. These statements help to provide an overview of the financial performance, position, and cash flows of the business.
2. How does an income statement of a sole proprietorship differ from that of a corporation?
Ans. The income statement of a sole proprietorship includes the revenue and expenses of the business and calculates the net income or loss, which is ultimately reported on the owner's personal tax return. In contrast, the income statement of a corporation reports the revenue, expenses, and taxes owed by the corporation itself.
3. What information does the balance sheet of a sole proprietorship provide?
Ans. The balance sheet of a sole proprietorship provides information about the assets, liabilities, and owner's equity of the business. It shows what the business owns (assets), what it owes (liabilities), and the owner's investment in the business (owner's equity) at a specific point in time.
4. How can a sole proprietor use the statement of cash flows to manage their business?
Ans. The statement of cash flows of a sole proprietorship shows the cash inflows and outflows from operating, investing, and financing activities. By analyzing this statement, a sole proprietor can assess the sources and uses of cash within their business, identify cash flow patterns, and make informed decisions regarding cash management and financial planning.
5. Can a sole proprietorship have financial statements prepared by a professional accountant?
Ans. Yes, a sole proprietorship can engage the services of a professional accountant to prepare their financial statements. While it is not a legal requirement for sole proprietors, it can be beneficial to have accurate and professionally prepared financial statements for various purposes such as securing loans, attracting investors, or complying with tax regulations.
82 videos|156 docs|42 tests
Download as PDF
Explore Courses for Commerce exam

Top Courses for Commerce

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Exam

,

Semester Notes

,

past year papers

,

Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

,

Free

,

video lectures

,

Summary

,

MCQs

,

practice quizzes

,

Extra Questions

,

shortcuts and tricks

,

Viva Questions

,

Objective type Questions

,

mock tests for examination

,

pdf

,

Previous Year Questions with Solutions

,

Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

,

Sample Paper

,

Financial Statements of Sole Proprietorship - (Part - 2) | Accountancy Class 11 - Commerce

,

study material

,

Important questions

,

ppt

;