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NCERT · Class 11 · Accountancy

Chapter 9: Financial Statements – 1

Practice each question, then open the answer or worked solution.

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Numerical Answers for NCERT Accountancy Solutions Class 11 Chapter 9

15 questions
Q1Written answer

Calculate the gross profit from the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March 31, 2017.

₹

Closing stock  2,50,000

Net sales during the year 40,00,000

Net purchases during the year 15,00,000

Opening stock 15,00,000

Direct expenses 80,000

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Worked solution

The gross profit can be calculated as given below:

Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 15,00,000 Net Sales 40,00,000
Net Purchases 15,00,000 Closing Stock 2,50,000
Direct Expenses 80,000
Gross Profit 11,70,000
42,50,000 42,50,000

Therefore, the Gross Profit is ₹ 11,70,000.

Q2Written answer

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

₹

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

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Worked solution

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

= ₹ 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

= ₹ 11, 35,000

Or

Cost of Goods Sold = Net Sales – Gross Profit

= 15, 50,000 – 4, 15,000

= ₹ 11, 35,000

(c) Gross Profit

Trading Account
Dr. Cr.
Particulars  Amount

₹

 Particulars Amount

₹
Opening Stock 25,000 Sales
Purchases Add: Credit Sales 12,00,000
Add: Credit Purchases 7,50,000 Add: Cash Sales 4,00,000
Add: Cash Purchases 3,00,000 16,00,000
10,50,000 Less: Sales Return (50,000) 15,50,000
Less: Purchases Return (10,000) 10,40,000
Wages 1,00,000 Closing Stock 30,000
Gross Profit 4,15,000
15,80,000 15,80,000
Q3Written answer

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, 2017.

₹

Opening stock 50,000

Net sales 11,00,000

Net purchases 6,00,000

Direct expenses 60,000

Administration expenses 45,000

Selling and distribution expenses 65,000

Loss due to fire 20,000

Closing stock 70,000

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Worked solution

The solution is as follows:

Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 50,000 Net Sales 11,00,000
Net Purchases 6,00,000 Closing Stock 70,000
Direct Expenses 60,000
Gross Profit 4,60,000
11,70,000 11,70,000
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
  = ₹ 3,50,000
Q4Written answer

Operating profit earned by M/s Arora and Sachdeva in 2016-17 was ₹ 17, 00,000. Its non-operating incomes were ₹ 1, 50,000 and non-operating expenses were ₹ 3, 75,000. Calculate the amount of net profit earned by the firm.

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Worked solution

Net Profit = Operating Profit + Non-operating Income – Non-operating Expenses

= 17, 00,000 + 1, 50,000 – 3, 75,000

= ₹ 14, 75,000

Therefore, the net profit earned by M/S Arora and Sachdeva in 2016–17 is ₹ 14, 75,000.

Q5Written answer

The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2017.

Account title Debit

₹

 Credit

₹
Opening Stock 2,00,000  
Purchases 8,10,000  
Sales   10,10,000
  10,10,000 10,10,000
     

(Only relevant items)

The closing Stock as on date was valued at ₹ 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.

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Worked solution
Books of M/s Bhola and Sons

Journal
Date Particulars L.F. Debit

Amount

₹

 Credit Amount ₹
2017    
Mar. 31 Trading A/c Dr. 10,10,000  
To Opening Stock A/c 2,00,000
To Purchases A/c 8,10,000
(Balances from Purchases Account and Stock Account

transferred to Trading Account)
Mar. 31 Sales A/c Dr. 10,10,000
Closing Stock A/c 3,00,000
To Trading A/c 13,10,000
(Balance from sales and closing stock transferred

to Trading Account)

  
Mar.31 Trading A/c Dr. 3,00,000
To Profit and Loss (Gross Profit) A/c 3,00,000
(Balance of Trading Account (gross profit) transferred

to Profit and Loss Account)
Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 2,00,000 Sales 10,10,000
Purchases 8,10,000 Closing Stock 3,00,000
Profit and Loss A/c – Gross Profit 3,00,000
13,10,000 13,10,000
Balance Sheet as on March 31, 2017
Liabilities Amount

₹

 Assets Amount

₹
Closing Stock 3,00,000
Q6Written answer

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

Account Title Amount

₹

 Account Title Amount

₹
Machinery 27,000 Capital 60,000
Sundry debtors 21,600 Bills payable 2,800
Drawings 2,700 Sundry creditors 1,400
Purchases 58,500 Sales 73,500
Wages 15,000    
Sundry expenses 600    
Rent and taxes 1,350    
Carriage inwards 450    
Bank 4,500    
Openings stock 6,000    

The closing stock, as on March 31, 2017, is ₹ 22,400

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Worked solution

The trading and profit and loss account and balance sheet are prepared as follows:

Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 6,000 Sales 73,500
Purchases 58,500 Closing Stock 22,400
Wages 15,000
Carriage Inwards 450
Profit and Loss (Gross Profit) 15,950
95,900 95,900
Profit and Loss Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Sundry Expenses 600 Trading (Gross Profit) 15,950
Rent and Taxes 1,350
Net Profit 14,000
15,950 15,950
Balance Sheet as on March 31, 2017
Liabilities Amount

₹

 Assets Amount

₹
Capital 60,000 Fixed Assets 
Add: Net Profit 14,000 Machinery 27,000
74,000
Less: Drawings 2,700 71,300 Current Assets 
Bank 4,500
Sundry Creditors 1,400 Closing Stock 22,400
Bills Payable 2,800 Sundry Debtors 21,600
75,500 75,500
Q7Written answer

The following trial balance was 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:

 

Account Title Amount

₹

 Account Title Amount ₹
Debtors 12,000 Apprenticeship premium 5,000
Purchases 50,000 Loan 10,000
Coal, gas and water 6,000 Bank overdraft 1,000
Factory wages 11,000 Sales 80,000
Salaries 9,000 Creditors 13,000
Rent 4,000 Capital 20,000
Discount 3,000    
Advertisement 500    
Drawings 1,000    
Loan 6,000    
Petty cash 500    
Sales return 1,000    
Machinery 5,000    
Land and building 10,000    
Income tax 100    
Furniture 9,900    
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Worked solution

The trading and profit and loss account and balance sheet are prepared as follows:

Trading Account as on March 31, 2017
Dr.  Cr.
Particulars Amount

₹

 Particulars Amount

₹
Purchases 50,000 Sales 80,000
Coal, Gas and Water 6,000 Less: Sales Return 1,000 79,000
Factory Wages 11,000
Profit and Loss (Gross Profit) 12,000
79,000 79,000
Profit and Loss Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Salaries 9,000 Trading (Gross Profit) 12,000
Rent 4,000 Apprenticeship Premium 5,000
Discount 3,000
Advertisement 500
Net Profit 500
17,000 17,000
Balance Sheet as on March 31, 2017
Liabilities Amount

₹

 Assets Amount

₹
Capital 20,000 Machinery 5,000
Add: Profit and Loss (Net Profit) 500 Land and Building 10,000
20,500 Furniture 9,900
Less: Drawings (1,000) Loan (Given) 6,000
Less: Income Tax (100) 19,400 Debtors 12,000
Petty Cash 500
Loan (Taken) 10,000
Creditors 13,000
Bank Overdraft 1,000
43,400 43,400
Q8Written answer

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

Account Title Debit Amount ₹ Credit Amount ₹
Opening stock 10,000  
Purchases and sales 40,000 80,000
Returns 200 600
Productive wages 6,000  
Dock and Clearing charges 4,000  
Donation and charity 600  
Delivery van expenses 6,000  
Lighting 500  
Sales tax collected   1,000
Bad debts 600  
Misc. incomes   6,000
Rent from tenants   2,000
Royalty 4,000  
Capital   40,000
Drawings 2,000  
Debtors and Creditors 6,000 7,000
Cash 3,000  
Investment 6,000  
Patents 4,000  
Land and Machinery 43,000  

 The closing stock is ₹ 2,000.

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Worked solution

The trading and profit and loss account and balance sheet are prepared as follows:

Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 10,000 Sales 80,000
Purchases 40,000 Less: Sales Returns (200) 79,800
Less: Purchases Returns (600) 39,400
Productive Wages 6,000 Closing Stock 2,000
Dock and Clearing Charges 4,000
Royalty 4,000
Profit and Loss (Gross Profit) 18,400
81,800 81,800
Profit and Loss Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Donation and Charity 600 Trading (Gross Profit) 18,400
Delivery Van Expenses 6,000 Misc. Incomes 6,000
Lighting 500 Rent from Tenants 2,000
Bad Debts 600
Net Profit 18,700
26,400 26,400
Balance Sheet as on March 31, 2017
Liabilities Amount

₹

 Assets Amount

₹
Capital 40,000 Patents 4,000
Add: Profit and Loss (Net Profit) 18,700 Land and Machinery 43,000
58,700 Investment 6,000
Less: Drawings (2,000) 56,700 Debtors 6,700
Cash 3,000
Sales Tax Collected 1,000 Closing Stock 2,000
Creditors 7,000
64,700 64,700
Q9Written answer

The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare the trading account, profit and loss account and balance sheet as on date:

Account Title Debit Amount ₹ Account Title Credit Amount ₹
Drawings 36,000 Capital 2,50,000
Insurance 3,000 Bills payable 3,600
General expenses 29,000 Creditors 50,000
Rent and taxes 14,400 Discount received 10,400
Lighting (factory) 2,800 Purchases return 8,000
Travelling expenses 7,400 Sales 4,40,000
Cash in hand 12,600    
Bills receivable 5,000    
Sundry debtors 1,04,000    
Furniture 16,000    
Plant and machinery 1,80,000    
Opening stock 40,000    
Purchases 1,60,000    
Sales return 6,000    
Carriage inwards 7,200    
Carriage outwards 1,600    
Wages 84,000    
Salaries 53,000    

The closing stock is ₹ 35,000.

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Worked solution

The trading account, profit and loss account and balance sheet are prepared below:

Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 40,000 Sales 4,40,000
Purchases 1,60,000 Less: Sales Return 6,000 4,34,000
Less: Purchases Return (8,000) 1,52,000 Closing Stock 35,000
Lighting (Factory) 2,800
Carriage Inwards 7,200
Wages 84,000
Profit and Loss (Gross Profit) 1,83,000
4,69,000 4,69,000
Profit and Loss Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Insurance 3,000 Trading (Gross Profit) 1,83,000
General Expenses 29,000 Discount Received 10,400
Rent and Taxes 14,400
Travelling Expenses 7,400
Carriage Outwards 1,600
Salaries 53,000
Net Profit 85,000
1,93,400 1,93,400
Balance Sheet as on March 31, 2017
Liabilities Amount

₹

 Assets Amount

₹
Capital 2,50,000 Plant and Machinery 1,80,000
Add: Net Profit 85,000 Furniture 16,000
3,35,000 Sundry Debtors 1,04,000
Less: Drawings (36,000) 2,99,000 Closing Stock 35,000
Bills Receivable 5,000
Creditors 50,000 Cash in Hand 12,600
Bills Payable 3,600
3,52,600 3,52,600
Q10Written answer

Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.

Account Title Debit Amount ₹ Credit Amount ₹
Purchases and sales 3,52,000 5,60,000
Return inwards and return outwards 9,600 12,000
Carriage inwards 7,000  
Carriage outwards 3,360  
Fuel and power 24,800  
Opening stock 57,600  
Bad debts 9,950  
Debtors and creditors 1,31,200 48,000
Capital   3,48,000
Investment 32,000  
Interest on investment   3,200
Loan   16,000
Repairs 2,400  
General expenses 17,000  
Wages and salaries 28,800  
Land and buildings 2,88,000  
Cash in hand 32,000  
Miscellaneous receipts   160
Sales tax collected   8,350

The closing stock is ₹ 30,000.

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Worked solution

The trading and profit and loss account and balance sheet for the question are posted below:

Trading Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Opening Stock 57,600 Sales 5,60,000
Purchases 3,52,000 Less: Return Inwards (9,600) 5,50,400
Less: Return Outwards (12,000) 3,40,000 Closing Stock 30,000
Carriage Inwards 7,000
Fuel and Power 24,800
Wages and Salaries 28,800
Profit and Loss (Gross Profit) 1,22,200
5,80,400 5,80,400
Profit and Loss Account as on March 31, 2017
Dr. Cr.
Particulars Amount

₹

 Particulars Amount

₹
Carriage Outwards 3,360 Trading (Gross Profit) 1,22,200
Bad Debts 9,950 Interest on Investment 3,200
Repairs 2,400 Miscellaneous Receipts 160
General Expenses 17,000
Net Profit 92,850
1,25,560 1,25,560
Balance Sheet as on March 31, 2017
Liabilities Amount

₹

 Assets Amount

₹
Capital 3,48,000 Land and Building 2,88,000
Add: Net Profit 92,850 4,40,850 Investment 32,000
Debtors 1,31,200
Loan 16,000 Closing Stock 30,000
Creditors 48,000 Cash in Hand 32,000
Sales Tax Collected 8,350
5,13,200 5,13,200