# 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.

Class 11 Accountancy Extra Questions

## 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 Stock 20,000 Purchases 70,000 Cash Sales 60,000 Credit sales 40,000

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 Stock 3,00,000 Wages 6,000 Purchases 8,40,000 Freight 10,800 Closing stock 2,40,000 Carriage inwards 3,000

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 Profit 1,20,000 Rent 5,000 Salary 35,000 Commission paid 19,000 Interest on Loan 5,000 Advertisement 8,000 Interest  received 8,000 Discount received 6,000 Printing and stationery 4,000 Legal charges 10,000 Bad debts 2,000 Loss by fire 6,000 Depreciation 4,000
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, 2009 20,000 Discount Received 1,500 Purchases 1,16,000 Return outwards 5,200 Wages 4,000 Sales 1,97,300 Returns inwards 7,040 Bills payable 6,000 Carriage on purchases 4,720 Sundry creditors 11,200 Carriage on sales 1,420 Creditors for rent 1,000 Office salaries 9,600 Capital 80,000 Duty on imported goods 5,400 Loan from Raj 20,000 Rent and taxes 4,800 Commission 2,400 Cash 2,200 Bank balance 15,640 Bad debts 1,200 Discount allowed 1,280 Land and building 40,000 Scooter 13,200 Scooter repairs 1,700 Bills receivable 7,000 Commission 3,600 Sundry Debtors 50,800 Interest on Raj’s Loan 3,000 Drawings 12,000 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

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.
for the year ended 31st March, 2013

 Dr Cr Particulars Amt (₹) Particulars Amt (₹) To Opening Stock 4,50,000 By Sales To Purchases: Cash Sales 4,80,000 Cash Purchases 4,50,000 Credit Sales 33,00,000 Add :Credit Purchases 27,00,000 37,80,000 31,50,000 Less : Returns Inward (60,000) 37,20,000 Less :Returns Outward (30,0000 31,20,000 By Closing Stock( note 1) 2,52,000 To Freight Inwards 9,000 To Carriage Inwards 9,000 To Wages and Salaries 12,000 To Gross Profit Transferred to Profit and Loss A/c 3,72,000 39,72,000 39,72,000

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 Stock 3,00,000 Add: Purchases 8,40,000 Wages 6,000 Freight 10,800 Carriage Inwards 3,000 11,59,800 Less: Closing Stock 2,40,000 Cost of Sales or Cost of Goods sold 9,19,800

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.

for the year ended 31st March, 2013

 Dr. Cr Particulars Amt (₹) Particulars Amt (₹) To Opening Stock 3,00,000 By Sales 11,49,750 To Purchases 8,40,000 By Closing Stock 2,40,000 To Wages 6,000 To Freight 10,800 To Carriage Inwards 3,000 To Gross Profit c/d 2,29,950 13,89,750 13,89,750
9. PROFIT AND LOSS ACCOUNT
for the year ended 31st March, 2018

 Particulars Rs. Particulars Rs. To Rent 5,000 By Gross Profit b/d 1,20,000 To Salary 35,000 By Interest received 8,000 To Commission 19,000 By Discount received 6,000 To Interest on Loan 5,000 To Advertisement 8,000 To Printing and Stationery 4,000 To Legal charges 10,000 To Bad debts 2,000 To Loss by fire 6,000 To Depreciation 4,000 To Net Profit c/d (Bal. fig.) 36,000 Total 1,34,000 Total 1,34,000

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 Rent & Taxes4,800
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
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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