# CLASS 11 COMMERCE ACCOUNTANCY(PART – II) CHAPTER – 1 Financial Statements – 1

## Financial Statements – 1

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

• 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

The gross profit is calculated below:

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

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

• 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

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)

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, 2017.

• Opening stock 50,000
• Net sales 11,00,000
• Net purchases 6,00,000
• Direct expenses 60,000
• Selling and distribution expenses 65,000
• Loss due to fire 20,000
• Closing stock 70,000

The solution is as follows:

4. 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.

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

= 17, 00,000 + 1, 50,000 – 3, 75,000

= ₹ 14, 75,000

Net profit earned by M/S Arora and Sachdeva in 2016–17 is ₹ 14, 75,000

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

(Only relevant items)

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.

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

Closing stock, as on March 31, 2017 ₹ 22,400

Trading and profit and loss account and balance sheet is prepared as follows:

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:

Trading and profit and loss account and balance sheet is prepared as follows:

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 ₹ 2,000.

Trading and profit and loss account and balance sheet is prepared as follows:

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

Closing stock ₹ 35,000.

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

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

Closing stock ₹ 30,000.

Trading and profit and loss account and balance sheet for the question is posted below:

11. From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Closing stock ₹ 15,000.

Trading and profit and loss account and balance sheet for the question is posted below:

12. Prepare trading and profit and loss account and balance sheet of M/s Royal Traders from the following balances as on March 31, 2017.

Closing stock ₹ 8,000.

Trading and profit and loss account and balance sheet is prepared below:

13. Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017.

Stock on March 31, 2017 ₹ 16,000.

Trading and profit and loss account and balance sheet is prepared below:

14. From the following balances of M/s Nilu Sarees as on March 31, 2017. Prepare trading and profit and loss account and balance sheet as on date.

Closing stock, as on March 31, 2017 ₹ 22,000.

15. Prepare trading and profit and loss account of M/s Sports Equipments for the year ended March 31, 2017 and balance sheet as on that date:

Closing stock as on March 31, 2017 ₹ 2,500

Trading and profit and loss account and balance sheet is prepared below:

Trading Account as on March 31, 2017

Profit and Loss Account as on March 31, 2017

Balance Sheet as on March 31, 2017