Financial Statements

Download CBSE Class 11th Standard CBSE Accountancy question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 11th Standard CBSE Accountancy

Questions:

Generic 4

5 x 4 = 20

Operating profit earned by M/s Arora and Sachdeva in 2013-14 was Rs.17,00,000. Its non-operating 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.

From the following balances extracted from the books of M/s Ahuja and Nanda. Calculate the amount of :
(i) Cost of goods available for sale
(ii) Cost of goods sold during the year
(iii) Gross Profit

	Rs
Opening stock	25,000
Credit purchases	7,50,000
Cash purchases	3,00,000
Credit sales	12,00,000
Cash sales	4,00,000
Wages	1,00,000
Salaries	1,40,000
Closing stock	30,000
Sales return	50,000
Purchases return	10,000

What is an Operating Profit?

S. Sharma doses their financial books on 31 December, 2013. Stock taking takes about two weeks. In 2014 the, value of dosing stock thus arrived at was ~ 25,000. During the two weeks in which stock taking took place, purchases made were Rs. 1,000 and sales totalled Rs. 4,000. The firm makes a Gross Profit of 30% on sales. Ascertain the value of dosing stock of 31st Dec., 2013.

Calculate Closing Stock from the following details:
Opening stock Rs. 80000; Cash sales Rs. 240000; Credit sales Rs. 160000; Purchases Rs. 280000. Rate of gross profit on cost \(33\frac { 1 }{ 3 } \)%.

Generic 6

5 x 6 = 30

The following Trial balance was extracted from the books of M/s. J. S. Bros. on March 31, 2014. Prepare Trading and Profit & Loss Account and a Balance sheet as on that date. The closing stock amounted to Rs.14,220.

Trial Balance
Particulars	Debit Rs	Credit Rs
Debtors	12,000
Creditors		7,900
Capital		30,000
Drawings	2,900
Rent and Rates	250
Trade Expenses	670
Purchases	8,640
Sales		14,290
Returns Outward		280
Returns Inward	190
Carriage Inward	250
Wages	2,920
Stock (April 1, 2013)	3,100
Discount Received		240
Discount Allowed	180
Bad Debts	200
Plant and Machinery	2,510
Furniture and Fittings	1,800
Cash-in-Hand	500
Cash at Bank	15,400
	52,710	52,710

From the Balance Sheet given below, calculate the following:
(i) Fixed Assets
(ii) Current Assets
(iii) Current Liabilities
(iv) Working Capital
(v) Capital Employed.

Balance Sheet as at 31^stMarch, 2014
Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Trade Creditors	42,000	Freehold Premises	40,000
Expenses Accrued	3,200	Plant and Machinery	32,000
Bank Overdraft	4,800	Furniture and Fittings	8,000
Long-term Loan	20,000	Stock in Hand	48,000
Interest accrued on long-term	1,000	Trade Debtors	36,000
loan		Rent prepaid	400
Capital account	93,400
	1,64,400		1,64,400

Calculate Gross Profit from the following information:

Particulars	Amount (Rs.)	Particulars	Amount(Rs.)
Opening stock	15,000	Purchases returns	1,000
Purchases	25,000	Sales returns	2,000
Sales	60,000	Carriage	3,000
Salaries and wages	4,000	Octroi	1,000
Motive power	3,000	Freight outward	4,000
Closing stock	12,000	Wages	7,000

(i) Net sales during the year 2016 is 2,85,000. Gross profit of 25% on sale. Find out Cost of Good sold.
(ii) Calculate Net Sales and Gross Profit from the following information: Cost of goods sold Rs. 1,00,000 Gross profit 20% on sales.

10.

Prepare a Trading Account of M/s Priyank Products from the following particulars pertaining to the year 2013-14.

	(Rs.)
Opening stock	50,000
Purchases	1,10,000
Returns inward	5,000
Sales	3,00,000
Returns outward	7,000
Factory rent	30,000
Wages	40,000

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 4

5 x 4 = 20

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-D6 was Rs.14,75,000

(i) Cost of goods available
for sale = Opening stock + Net purchase
= 25,000 + 7,50,000 + 3,00,000 - 10,000
= Rs.11,65,000
[Net purchase = Totalpurchase - Purchase Return]
(ii) Cost of goods sold during the year = Cost of goods available - Closing stock
= 11,65,000 - 30,000
= Rs.11,35,000
(iii)

Trading Account for the year ending .........
Particulars		Amount Rs	Particulars		Amount Rs
To opening Stock		25,000	By Sales
To Purchase			Credit	12,00,000
Credit	7,50,000		Cash	4,00,000
Cash	3,00,000		Less: Sales Return	50,000
Less: Purchase Return	(10,000)	10,40,000	By Closing Stock		30,000
To Wages		1,00,000
		15,80,000			15,80,000

Operating profit is a profit earned through normal activities of a business. It is the excess of gross profit over operating expenses. In other words, it is the excess of operating revenue over operating cost. It is also termed as earning before interest and tax (EBIT).It does not include income and expenses that are not related to main course of the business. It is calculated by following formula: Operating Profit = Gross Profit - Operating Expenses.

Cost of goods sold during stock taking period
= 70% of Rs. 4,000 = Rs. 2,800
Closing stock = Value as on 16th Jan. 2007 + Cost of goods sold during 1-16 Jan. - Cost of goods
purchased during 1-16 Jan.
= Rs. 25,000 + Rs. 2,800 - Rs. 1,000 = Rs. 26,800.

Calculation of Closing Stock:
Total Sales = Cash Sales + Credit Sales
=Rs. 240000+Rs. 160000
=Rs. 400000
Let the cost be = Rs. 100, Gross Proft = \(33\frac { 1 }{ 3 } \)% on cost
Then Sales = \(133\frac { 1 }{ 3 } \)
Gross Profit on Sales = \(\frac { 33\frac { 1 }{ 3 } }{ 133\frac { 1 }{ 3 } } \) = \(\frac { 1 }{ 4 } \)
Gross Proft = Rs. 400000 x \(\frac { 1 }{ 4 } \) = Rs. 100000
Cost of Goods Sold = Sales - Gross Proft
= Rs. 400000 - Rs. 100000 = Rs. 300000
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Rs. 300000 = Rs. 80000 + Rs. 280000 - Closing Stock
Closing Stock = Rs. 360000 - 300000 = Rs. 60000

Generic 6

5 x 6 = 30

In the Books of M/s. J. S. Bros.
Trading and Profit & Loss Account
Dr for the year ending 31st March, 2014 Cr
Particulars		Amount Rs	Particulars		Amount Rs
To Opening Stock		3,100	By Sales	14,290
To Purchases	8,640		Less : Returns	190	14,100
Less : Returns	280	8,360	By Closing Stock		14,220
To Wages		2,920
To Carriage Inward		250
To Gross Profit transferred to P & L Nc		13,690
		28,320			28,320
To Rent and Rates		250	By Gross Profit transferred from
ToTrade expenses		670	Trading A/c		13,690
To Salaries		1,200	By Discount received		240
To Discount allowed		180
To Bad Debts		200
To Net Profit transferred to Capital A/c		11,430
		13,930			13,930

Balance Sheet of M/s M.S. Bros.
as on 31st March, 2014
Liabilities		Amount Rs	Assets	Amount Rs
Current Liabilities:			Current Assets
Creditors		7,900	Cash-in-hand	500
Capital	30,000		Cash at Bank	15,400
Add: Net Profit	11,430		Debtors	12,000
	41,430		Closing Stock	14,220
Less: Drawings	2,900	38,530	Fixed Assets
			Plant and Machinery	2,510
			Furniture and Fittings	1,800
		46430		46430

(i) Fixed Assets :	(Rs.)	(iii) Current Liabilities:	(Rs.)
Freehold premises	40,000	Trade creditors	42,000
Plant and machinery	32,000	Expenses accrued	3,200
Furniture and fittings	8,000	Bank overdraft	4,800
		Interest accrued on
		long-term loan	1,000
	80,000		51,000
(ii) Current Assets :	(Rs.)	(iv) Working Capital :	(Rs.)
Stock in hand	48,000	Current assets as in (ii)	84,400
Trade debtors	36,000	Less: Current liabilities
Rent prepaid	400	as in (iii)	51,000
	84,400		33,400
(v) Capital Employed:	(Rs.)
Capital	93,400
Long-term loan	20,000
	1,13,400

Calculation of Gross Profit :
Gross profit = Net sales - Cost of goods sold
= 58,000 - 41,000 = Rs. 17,000.
Working Notes:

(i) Cost of goods sold:	(Rs.)
Opening stock	15000
+ Net purchases	24000
+ Direct expenses	14000
	53000
(-) Closing stock	12000
	41000

(ii) Net Purchases = Purchases - Purchases returns
= Rs. 25,000 - Rs. 1,000 = Rs. 24,000
(iii) Net sales = Sales - Sales returns
= Rs. 60,000 - Rs. 2,000 = Rs. 58,000
(iv) Direct expenses = Motive power + Carriage + Octroi + Wages
= Rs. 3,000 + Rs. 3,000 + Rs. 1,000 + Rs. 7,000 = Rs. 14,000

(i) Gross Profit = Net Sales - Cost of goods sold
So, Cost of goods Sold = Net Sales - Gross Profit on sales
= Rs. 2,85,000 - 25/100 x Rs. 2,85,000
= Rs. 2,85,000 - Rs. 71,250
= Rs. 2,13,750
(ii) Let Sales be 100, Gross Profit will be Rs. 20.
Therefore, Cost of goods sold will be = Rs. 100 - Rs. 20 = Rs. 80
When Cost of goods sold is Rs. 80, then sales = Rs. 100
& when the cost of goods sold is Rs. 1, then sales = Rs. 100/80
So when the cost of good sold is Rs. 1,00,000 then sales = 100/80 x 1,00,000 = Rs. 1,25,000
So, Gross profit on sales = 1,25,000 x 20% = Rs. 25,000

10.

In the Books of M/s. Priyanka Products Trading Account for the year ended March 31, 2014

Particulars		Amount(Rs.)	Particulars		Amount (Rs.)
To Opening stock		50,000	By Sales	3,00,000
To Purchases	1,10,000		Less: Returns Inward	5,000	2,95,000
Less: Returns Outward	7,000	1,03,000
To.Factory rent		30,000
To Wages		40,000
ToGross Profit c/d		72,000
		2,95,000			2,95,000