Financial Statements – I – Numerical Questions Solutions

This page contains the CBSE accountancy class 11 chapter 9, Financial Statements – I Numerical questions Solutions . You can find the questions/answers/solutions for the chapter 9 of CBSE class 11 accountancy in this page. So is the case if you are looking for CBSE class 11 Commerce related topic Financial Statements – I Numerical Questions
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This page contains solutions to numerical questions for the chapter 9, Financial Statements – I. If you’re looking for solutions theoretical questions, you can find them at Financial Statements – I
Financial Statements – I – Numerical Questions Solutions
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
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
Cost of goods available
=
Opening Stock + Net Purchases + Wages
=
₹ 25,000 + ₹ 10,40,000 + ₹ 1,00,000
=
₹ 11,65,000
Cost of goods sold
=
Opening Stock + Net Purchases + Wages – Closing Stock
=
₹ 25,000 + ₹ 10,40,000 + ₹ 1,00,000 – ₹ 30,000
=
₹ 11,35,000
Alternatively,
Cost of goods sold
=
Net Sales – Gross Profit
=
₹ 15,50,000 – ₹ 4,15,000
=
₹ 11,35,000
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 & 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
In the given problem, we have
Indirect Expenses
=
Administrative Expenses + Selling and Distribution Expenses
=
₹ 45,000 + ₹ 65,000
=
₹ 1,10,000
Thus, we’ve
Operating Profit
=
Gross Profit + Other Incomes – Indirect Expenses
=
₹ 4,60,000 + ₹ 0 – ₹ 1,10,000
=
₹ 3,50,000
Note: The loss due to fire will be considered when calculating the net profit. But in the given problem we just have to calculate the operating profit and not net profit. So, the loss due to fire not considered.

4. Operating profit earned by M/s Arora & 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.
The formula for computing the the operating profit is giving as
Operating Profit
=
Net Profit + Non-Operating Expenses – Non-Operating Incomes
⇒ ₹ 17,00,000
=
Net Profit + ₹ 3,75,000 – ₹ 1,50,000
⇒ ₹ 17,00,000
=
Net Profit + ₹ 2,25,000
⇒ Net Profit
=
₹ 17,00,000 – ₹ 2,25,000
=
₹ 14,75,000

5. The following are the extracts from the trial balance of M/s Bhola & 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 & Sons.
Books of M/s Bhola & Sons
Journal
Date
Particulars
L.F.
Debit
Amount
₹
Credit
Amount
₹
2017
Mar 31
Trading A/c
Dr
10,00,000
To Opening Stock A/c
2,00,000
To Purchases A/c
8,10,000
(Being the balances from the opening stock and purchases accounts transferred to the Trading A/c)
Mar 31
Sales A/c
Dr.
10,10,000
Closing Stock A/c
Dr.
3,00,000
To Trading A/c
13,10,000
(Being the balances from the sales and closing stock A/c transferred to the Trading A/c)
Mar 31
Trading A/c
Dr.
3,00,000
To Profit and Loss A/c
3,00,000
(Being the balance from the Trading Account i.e. Gross proit transferred to the Profit and Loss A/c)
Balance Sheet of M/s Bhola & Sons as on March 31, 2017
*Only relevant data is shown.
Liabilities
Amount
₹
Assets
Amount
₹
Closing Stock
3,00,000

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
Balance sheet as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
60,000
Non-Current Assets
Net Profit
14,000
Machinery
27,000
74,000
Current Assets
Drawings
2,700
71,300
Bank
4,500
Sundry Creditors
1,400
Closing Stock
22,400
Bills Payable
2,800
Sundry Debtors
21,600
75,500
75,500

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 :
Balance sheet of M/s Ram as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
20,000
Machinery
5,000
Net Profit
500
Land and Building
10,000
20,500
Furniture
9,900
Drawings
(1,000)
Loan (Lent)
6,000
Income tax
(100)
19,400
Debtors
12,000
Loan (Borrowed)
10,000
Petty cash
500
Creditors
13,000
Bank Overdraft
1,000
43,400
43,400

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.
Note: Royalty is usually the payment done to the owner of a patent or mine for using their patent or mine. Royalty adds to the cost of the production and should be considered in the trading account. This is what we did in our problem. Sometimes the question clearly states that the royalty should be considered as a sales expense. In this case we should consider the royalty in the profit and loss account (This is not the case here. This is just for your information)
Balance sheet of as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
40,000
Patents
4,000
Net profit
18,700
Land and Machinery
43,000
58,700
Investment
6,000
Drawings
(2,000)
56,700
Debtors
6,700
Sales tax collected
1,000
Cash
3,000
Creditors
7,000
Closing stock
2,700
64,700
64,700
Note: We’ve considered the debtors as ₹ 6,700 instead of the given value of ₹ 6,0000 (this seems to be a typo in the text book).

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 :
Balance sheet of as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
2,50,000
Plant and machinery
1,80,000
Net profit
85,000
Furniture
16,000
3,35,000
Sundry debtors
1,04,000
Drawings
(36,000)
2,99,000
Closing stock
35,000
Creditors
50,000
Bills receivable
5,000
Bills payable
3,600
Cash in hand
12,600
3,52,600
3,52,600

10. Prepare trading and profit and loss account and balance sheet from the following particulars as on March 31, 2017.
Balance sheet of as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
3,48,000
Land and building
2,88,000
Net profit
92,850
4,40,850
Investment
32,000
Loan
16,000
Debtors
1,31,200
Creditors
48,000
Closing stock
30,000
Sales tax collected
8,350
Cash in hand
32,000
5,13,200
5,13,200

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.
Balance sheet of as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
50,000
Building
65,000
Net Profit
27,200
77,200
Furniture
5,200
Creditors
16,000
Scooter
8,000
Bank overdraft
10,000
Debtors
6,000
Closing Stock
15,000
Cash in hand
4,000
1,03,200
1,03,200

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
Balance sheet as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
2,00,000
Machinery
1,00,000
Net loss
(20,000)
Furniture
35,000
Drawings
(9,000)
1,71,000
Debtors
27,000
Creditors
10,000
Closing Stock
8,000
Bills Payable
4,000
Bank
10,000
Cash
5,000
1,85,000
1,85,000

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.
Balance sheet as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
2,36,000
Building
23,000
Net profit
11,530
2,47,530
Plant
16,930
Loan
8,000
Machinery
2,10,940
Creditors
8,000
Debtors
3,900
Bills payable
2,520
Closing stock
16,000
Bank overdraft
4,720
2,70,770
2,70,770
Note: Note that the answers for gross profit, net profit and balance sheet totals provide in the text book have typo and hence the answers in our solution differ from those provided in the text book.

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.
Note: Note that the text book has a typo with the value of the gross profit where it is give as ₹ 1,56,500 but in our solution we got it as ₹ 1,48,500
Balance sheet as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
70,000
Machinery
60,000
Net profit
1,10,300
Investments
90,000
1,80,300
Debtors
30,000
Drawings
(18,000)
1,62,300
Closing stock
22,000
Creditors
28,000
Cash in hand
12,000
Bills payable
23,700
2,14,000
2,14,000
Note: Note that the bills payable is printed with a typo as 2,370 in the text book instead of the 23,700. We’ve considered the correct value of 23,700 in the balance sheet.

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
Balance sheet as on March 31, 2017
Liabilities
Amount
₹
Assets
Amount
₹
Capital
3,00,000
Plants
60,000
Net Loss
(41,500)
Furniture
1,28,000
Drawings
(24,000)
2,34,500
Debtors
1,40,000
Creditors
1,00,000
Closing Stock
2,500
Bank overdraft
28,000
Cash in hand
32,000
3,62,500
3,62,500