NCERT Solution (Part - 1) - Financial Statements-I

# NCERT Solution (Part - 1) - Financial Statements-I | Accountancy Class 11 - Commerce PDF Download

## Numerical questions

Question.1: From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March 31, 2003, calculate the gross profit.

Question.2: From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of:
(a) Cost of goods available for sale
(b) Cost of goods sold during the year
(c) Gross Profit

(a) Cost of Goods Sold Available for Sales
Or
Cost of Goods Manufactured = Opening Stock + Net Purchases + Wages
= 25,000 + 10,40,000 + 1,00,000
= Rs 11,65,000
(b) Cost of Goods Sold = Opening Stock + Net Purchases + Wages - Closing Stock
= 25,000 + 10,40,000 + 1,00,000 - 30,000
= Rs 11,35,000
Or
Cost of Goods Sold = Net Sales - Gross Profit
= 15,50,000 - 4,15,000
= Rs 11,35,000

(c)

Gross Profit Rs 4,15,000

Question.3: Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of M/s Rajiv and Sons for the year ended March 31, 2005.

Operating Profit = Sales - (Opening Stock + Net Purchases + Direct Expenses + Administration Expenses + Selling and Distribution Expenses) + Closing Stock
= 11,00,000 - (50,000 + 6,00,000 + 60,000 + 45,000 + 65,000) + 70,000
= Rs 3,50,000

Question 4:  Operating profit earned by M/s Arora and Sachdeva in 2005-06 was Rs 17,00,000. Its nonoperating incomes were Rs 1,50,000 and non-operating expenses were Rs 3,75,000.  Calculate the amount of net profit earned by the firm.

Answer : Net Profit = Operating Profit + Non-operating Income - Non-operating Expenses
= 17,00,000 + 1,50,000 - 3,75,000
= Rs 14,75,000
Net profit earned by M/S Arora and Sachdeva in 2005-06 is Rs 14,75,000.

Question.5: The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2005

(Only relevant items)
Closing Stock as on date was valued at Rs 3,00,000.
You are required to record the necessary journal entries and show how the above items will appear in the trading and profit and loss account and balance sheet of M/s Bhola and Sons.

Question.6 : Prepare trading and profit and loss account and balance sheet, as on March 31, 2017 :

Closing stock, as on March 31, 2017 Rs 22,400.

Question.7: The following trial balance is extracted from the books of M/s Ram on March 31, 2017. You are required to prepare trading and profit and loss account and the balance sheet as on date:

Question.8 : The following is the trial balance of Manju Chawla on March 31, 2017. You are required to prepare trading and profit and loss account and a balance sheet as on date:

Closing stock Rs 2,000.

Note: As per the solution, net profit is Rs 18,700; however, according to the answer given in the book, it is Rs 18,400.

Note: There is a misprint in the trial balance given in the question. In order to match the trial balance, debtors have been taken as Rs 6,700; however, the debtors given in the trial balance is Rs 60,000.

The document NCERT Solution (Part - 1) - Financial Statements-I | Accountancy Class 11 - Commerce is a part of the Commerce Course Accountancy Class 11.
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## Accountancy Class 11

82 videos|105 docs|42 tests

## FAQs on NCERT Solution (Part - 1) - Financial Statements-I - Accountancy Class 11 - Commerce

 1. What are financial statements and why are they important?
Ans. Financial statements are reports that summarize the financial performance of a company. They include the balance sheet, income statement, and cash flow statement. These statements are important because they help investors and analysts make informed decisions about a company's financial health and potential for growth. They also provide valuable information to creditors and other stakeholders who need to assess the company's ability to pay back loans and meet other obligations.
 2. What is the purpose of the balance sheet?
Ans. The balance sheet is one of the three main financial statements and provides a snapshot of a company's financial position at a specific point in time. The purpose of the balance sheet is to show a company's assets, liabilities, and equity. It provides investors, creditors and other stakeholders with a clear idea of what the company owns and owes and how much the shareholders have invested in the company.
 3. How is the income statement used by investors and analysts?
Ans. The income statement is a financial statement that shows a company's revenues, expenses, and net income over a specific period of time. Investors and analysts use the income statement to evaluate a company's profitability and growth potential. By analyzing the revenue and expense trends, they can identify areas where the company is doing well and areas where it needs to improve. This information can help them make informed investment decisions.
 4. What is the difference between cash flow and net income?
Ans. Cash flow and net income are two different concepts in accounting. Net income is the profit a company makes after deducting all expenses from its revenue. Cash flow, on the other hand, is the amount of cash that flows in and out of a company over a specific period of time. The cash flow statement shows the inflows and outflows of cash from operating, investing, and financing activities. While net income is an important measure of a company's profitability, cash flow is essential for a company's liquidity and ability to pay its bills and obligations.
 5. What is the purpose of financial ratios and how are they used?
Ans. Financial ratios are calculations that are used to analyze a company's financial performance. They help investors and analysts evaluate a company's profitability, liquidity, and solvency. Some common financial ratios include the debt-to-equity ratio, return on equity, and gross margin ratio. These ratios are used to compare a company's performance to its peers or industry standards. They can also be used to identify areas where a company may need to improve its financial performance, such as reducing debt or increasing profitability.

## Accountancy Class 11

82 videos|105 docs|42 tests

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