CBSE Class 11 Accountancy Chapter 9 Important Questions

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CBSE Class 11 Accountancy Chapter 9 Important Questions. myCBSEguide has just released Chapter Wise Question Answers for class 11. Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. Accountancy describes the duties of an accountant, the person whose job is to keep, inspect and interpret financial accounts. There chapter wise Practice Questions with complete solutions are available for download in myCBSEguide website and mobile app. These Question with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. There are around 4-5 set of solved Accountancy Extra questions from each and every chapter. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. We have taken care of every single concept given in CBSE Class 11 Accountancy syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 11.

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Financial Statements -I Sole Proprietorship Class 11 Accountancy Practice Questions

Ch-9 Financial Statements-I Sole Proprietorship


  1. What is primary objective of financial statements?
  2. What is the operating profit?
  3. What is meant by marshalling of assets and liabilities?
  4. What do we come to know by preparing a trading account?
  5. Calculate gross profit when total purchases during the year are Rs. 8,00,000; returns outward Rs. 20,000; direct expenses Rs. 60,000 and 2/3rd of the goods are sold for Rs. 6,10,000.
  6. Calculate Closing Stock from the following details:
    Rs.Rs.
    Opening Stock20,000Purchases70,000
    Cash Sales60,000Credit sales40,000

    Rate of Gross Profit on cost {tex}33 \frac{1}{3} \%.{/tex}

  7. From the following information, prepare trading account for the year ended 31st March, 2013 Cash purchases Rs. 4,50,000; credit purchases Rs. 27,00,000; returns inward Rs. 60,000; cash sales Rs. 4,80,000; credit sales Rs. 33,00,000; returns outward Rs. 30,000; freight inwards Rs. 9,000; carriage inwards Rs. 9,000; wages and salaries Rs. 12,000; opening stock Rs. 4,50,000; closing stock Rs. 2,64,000 but its market value is Rs.2,52,000.
  8. From the following information, prepare the trading account for the year ended 31st March, 2013
    Amt (Rs.)Amt (Rs.)
    Opening Stock3,00,000Wages6,000
    Purchases8,40,000Freight10,800
    Closing stock2,40,000Carriage inwards3,000

    The percentage of gross profit on sales is 20%.

  9. From the following information, prepare the Profit and Loss A/c for the year ended 31st March 2018
    Rs.
    Gross Profit1,20,000
    Rent5,000
    Salary35,000
    Commission paid19,000
    Interest on Loan5,000
    Advertisement8,000
    Interest  received8,000
    Discount received6,000
    Printing and stationery4,000
    Legal charges10,000
    Bad debts2,000
    Loss by fire6,000
    Depreciation4,000
  10. Following is the trial balance of Kartik Makkar as on 31st March, 2013
    Name of Account Debit
    Amount
    (Rs.)
    Name of Account Credit
    Amount
    (Rs.)
    Stock on 1 st April, 200920,000Discount Received1,500
    Purchases1,16,000Return outwards5,200
    Wages4,000Sales1,97,300
    Returns inwards7,040Bills payable6,000
    Carriage on purchases4,720Sundry creditors11,200
    Carriage on sales1,420Creditors for rent1,000
    Office salaries9,600Capital80,000
    Duty on imported goods5,400Loan from Raj20,000
    Rent and taxes4,800Commission2,400
    Cash2,200
    Bank balance15,640
    Bad debts1,200
    Discount allowed1,280
    Land and building40,000
    Scooter13,200
    Scooter repairs1,700
    Bills receivable7,000
    Commission3,600
    Sundry Debtors50,800
    Interest on Raj’s Loan3,000
    Drawings12,000

    3,24,600

    ======

    3,24,600

    ======

    Prepare a trading and profit and loss account for the year ended on 31st March, 2013 and the balance sheet as at that date. The stock on 31st March, 2010 was Rs. 44,000.

Ch-9 Financial Statements-I Sole Proprietorship


Answer

  1. The primary objective of financial statements is to analyze the financial position of the business by comparing them and drawing out the suitable measures to overcome the shortcomings.
  2. Operating profit means the excess of operating revenue over operating expenses. It is obtained by subtracting operating expenses and adding operating incomes to the Gross profit.
  3. Marshalling is the arrangement of assets and liabilities in particular order in the balance sheet in order to make the balance sheet more scientific and comprehensive for study by the users.
    There are two ways of marshalling:

    1. Marshalling as per Order of liquidity
    2. Marshalling as per Order of permanence
  4. By preparing the trading account, we come to know the ‘gross profit’ earned or ‘gross loss’ sustained by the firm during the manufacturing or production process.
  5. Cost of Goods Sold = Total Purchases – Returns Outward + Direct Expenses = 8,40,000.
    1. goods sold (2/3)for Rs. 6,10,000.
    2. Cost of 2/3rd goods = 8,40,000 × 2/3 = Rs. 5,60,000.
    3. Gross profit = Goods Sold – Cost of Goods Sold = 6,10,000 – 5,60,000 = Rs. 50,000.
  6. Total Sales = Cash Sales + Credit Sales
    = Rs.[60,000 + 40,000] = Rs.1,00,000
    Let cost of sales = x
    Gross Profit = {tex}33 \frac{1}{3} \% \text { of } x=x \times \frac{1}{3}=\frac{x}{3}{/tex}
    So, Sales = Cost + Gross Profit
    x + {tex}\left (\frac{x}{3} \right){/tex} = 1,00,000
    4{tex}\left (\frac{x}{3} \right){/tex} = 1,00,000
    x = 1,00,000 {tex}\times{/tex}(3/4)cost of goods sold = Rs.75,000
    Now Cost of goods sold = Opening Stock + Purchase – Closing Stock
    So, [20,000 + 70,000 – Closing Stock] = Rs.75,000
    Closing Stock = (20,000 + 70,000) – 75,000 = Rs. 15,000
    Goods remaining unsold at the end of the year is called closing stock.
  7. Trading Account
    for the year ended 31st March, 2013

    DrCr
    ParticularsAmt (₹)ParticularsAmt (₹)
    To Opening Stock4,50,000By Sales
    To Purchases:Cash Sales4,80,000
    Cash Purchases4,50,000Credit Sales33,00,000
    Add :Credit Purchases27,00,00037,80,000
    31,50,000Less : Returns Inward(60,000)37,20,000
    Less :Returns Outward(30,000031,20,000By Closing Stock( note 1)2,52,000
    To Freight Inwards9,000
    To Carriage Inwards9,000
    To Wages and Salaries12,000
    To Gross Profit Transferred to Profit and Loss A/c3,72,000
    39,72,00039,72,000

    Note :

    1. Closing Stock will be shown in the books at market price or book value price, whichever is less.
  8. Working Notes :i. Calculation of Cost of goods sold:
    Opening Stock3,00,000
    Add: Purchases8,40,000
    Wages6,000
    Freight10,800
    Carriage Inwards3,000
    11,59,800
    Less: Closing Stock2,40,000
    Cost of Sales or Cost of Goods sold9,19,800

    ii. Calculation of Sales :

    Let us assume that sales = ₹100,

    then, gross profit would be = ₹20 (20% of sales)
    Therefore, cost of sales would be = Sales – Gross Profit = 100 – 20 = ₹80.
    When cost of sales is ₹80, then sales would be  = ₹100.
    When cost of sales is ₹1, then sales would be =100/80.
    When cost of sales is ₹9,19,800, then sales would be {tex} = \frac{{100}}{{80}} \times 9,19,800{/tex} = ₹11,49,750.

    Trading Account
    for the year ended 31st March, 2013

    Dr.Cr
    ParticularsAmt (₹)ParticularsAmt (₹)
    To Opening Stock3,00,000By Sales11,49,750
    To Purchases8,40,000By Closing Stock2,40,000
    To Wages6,000
    To Freight10,800
    To Carriage Inwards3,000
    To Gross Profit c/d2,29,950
    13,89,75013,89,750
  9. PROFIT AND LOSS ACCOUNT
    for the year ended 31st March, 2018

    ParticularsRs.ParticularsRs.
    To Rent5,000By Gross Profit b/d1,20,000
    To Salary35,000By Interest received8,000
    To Commission19,000By Discount received6,000
    To Interest on Loan5,000
    To Advertisement8,000
    To Printing and Stationery4,000
    To Legal charges10,000
    To Bad debts2,000
    To Loss by fire6,000
    To Depreciation4,000
    To Net Profit c/d (Bal. fig.)36,000
    Total1,34,000Total1,34,000

    Profit & Loss account is prepared on the last day of the accounting year in order to determine the net result of the business. Only indirect expense and indirect revenue are shown in it.

  10. Trading and Profit & Loss Account
    for the year ended March 31, 2010

    ParticularsAmount

    (Rs)

    ParticularsAmount

    (Rs)

    To Opening Stock20,000By Sales  (1,97,300)
    To Purchase  (1,16,000)     Less Returns (7,040)1,90,260
         Less Returns  (5,200)1,10,800By Closing Stock44,000
    To wages4,000
    To carriage4,720
    To Gross Profit c/d94,740
    234260

    ========

    234260

    ========

    To Duty on Imported Goods5,400By Gross Profit b/d94,740
    To Carriage on Sales1,420By Commission2,400
    To Office Salaries9,600By Discount Received1,500
    To Rent & Taxes4,800
    To Bad Debts1,200
    To Discount Allowed1,280
    To Scooter Repairs1,700
    To Commission3,600
    To Interest on Loan3,000
    To Net Profit66,640
    98,640

    =======

    98,640

    ========

    Balance Sheet
    As On March 31, 2010

    LiabilitiesAmount

    (Rs)

    AssetsAmount

    (Rs)

    Capital (80,000)Cash2,200
     Add Net Profit (66,640)Bank15,640
    Less Drawings (12,000)1,34,640Land and building40,000
    Bills Payable6,000Scooter13,200
    Creditors11,200Bills Receivables7,000
    Creditors for rent1,000Debtors50,800
    Loan from Raj20,000Closing Stock44,000
    1,72,840

    =========

    1,72,840

    =======

    Gross Profit -This is calculated in the Trading Account and is the excess of sales over the cost of goods sold during the period. Net Profit -This is calculated in the Profit and Loss Account and is what remains after all other costs used up in the period have been deducted from the Gross Profit.




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