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DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsQ.1 Prepare a Trading Account from the following particulars for the year ended 31st March 2017Particulars( )Particulars( )Opening Stock2,50,000Purchases Returns22,000Purchases7,00,000Sales Return36,000Sales18,00,000Gas, Fuel and Power75,000Wages2,06,000Dock Charges8,000Carriage Inward34,000Factory Lighting96,000Carriage Outward20,000Office Lighting5,000Manufacturing Expenses2,48,000Closing Stock is valued at 6,00,000.The solution for this question is as follows:Trading Account for the year ended March 31,2017Dr.Cr.ParticularsAmount ParticularsOpening Stock2,50,000Sales18,00,000Less: Sales Returns36,000Purchases7,00,000Less: Purchases Returns22,0006,78,000Carriage Inward34,000Wages2,06,000Custom Duty15,000Gas, Fuel & Power60,000Dock Charges8,000Closing StockAmount 17,64,0006,00,000

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsManufacturing Expenses2,48,000Factory Lighting96,000Gross Profit (Balancing Figure)7,69,00023,64,00023,64,000Q. 2(A) From the following information, prepare the Trading Account for the year ended 31st March, 2017:Adjusted Purchases 15,00,000; Sales 21,40,000; Returns Inwards 40,000; Freight and Packing 15,000; Packing Expenses on Sales 20,000; Depreciation 36,000; Factory Expenses 60,000; ClosingStock 1,20,000.The solution for this question is as follows:Trading Account for the year end March 31, 2017Dr.Cr.ParticularsAmount ParticularsAdjusted Purchases15,00,000Sales21,40,000Freight & Packing15,000Less: Return Inwards40,000Factory Expenses60,000Gross Profit (Balancing Figure)5,25,00021,00,000Amount 21,00,00021,00,000Note: Since closing stock is already adjusted in purchases. Therefore, the closing stock will not be on the Creditside of Trading AccountAdjusted Purchases Opening Stock Net Purchases – Closing Stock

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsQ.2(B) Calculate Gross Profit from the following information: Closing usted Purchase5,50,000The solution for this question is as follows:Dr.Cr.ParticularsAmount ParticularsAmount Adjusted Purchase5,50,000Sales6,88,000Wages40,000Gross Profit (Balancing Figure)98,0006,88,0006,88,000Note: Since the adjusted purchases are already given, the stocks will not be considered while calculating GrossProfit.

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsQuestion 3(A)Calculate cost of goods sold from the following: Opening Stock40,000Wages & Salaries10,000Net Purchases50,000Rent Paid15,000Net Sales1,90,000Closing Stock15,000The solution for this question is as follows:Cost of Goods Sold Opening Stock Purchases Direct Expenses – Closing StockCost of Goods Sold 40,000 50,000 10,000 – 15,000 85,000Question 3(B)Ascertain cost of Goods Sold and Gross Profit from the following: Opening Stock32,000Purchases2,80,000Direct Expenses20,000Indirect Expenses45,000Closing Stock50,000Sales4,00,000Sales Returns8,000

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsThe solution for this question is as follows:Gross Profit Net Sale- Cost of Goods SoldCost of Goods Sold Opening Stock Net Purchases Direct Expenses – Closing StockCost of Goods Sold 32,000 2,80,000 20,000 – 50,000 2,82,000Net Sale Sales – Sales Return 4,00,000 – 8,000 3,92,000Therefore, Gross Profit 3,92,000 – 2,82,000 1,10,000Q.4 Calculate Gross Profit on the basis of the following information: Purchases6,80,000Return Outwards30,000Carriage Inwards20,000Carriage Outwards15,000Wages50,0003/4 of the goods are sold for 6,00,000.The solution for this question is as follows:Cost of Goods Sold Opening Stock Net Purchases Direct Expenses – Closing StockNet Purchases Purchase – Purchase Return 6,80,000 – 30,000 6,50,000Direct Expense Carriage Inwards Wages 20,000 50,000 70,000

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsCost of Goods Sold 0 6,50,000 70,000 – 0 7,20,0003/4th of the goods is sold for 6,00,000Cost 3/4th of the sold goods 3/4th X 7,20,000 5,40,000Gross Profit Net Sale - Cost of Goods Sold 6,00,000 – 5,40,000 60,000Q.5(A) Calculate Closing Stock and Cost of Goods Sold:Opening Stock 5,000; Sales 16,000; Carriage Inwards 1,000; Sales Returns 1,000; Gross Profit 6,000; Purchase 10,000; Purchase Returns 900.The solution for this question is as follows:Cost of Goods Sold Net Sale – Gross Profit 15,000 – 6,000 9,000Cost of Goods Sold Opening Stock Net Purchases Direct Expenses – Closing Stock9,000 5,000 (10,000 900) 1,000 – Closing StockClosing Stock 15,100 – 9,000 6,100Q.5(B) Calculate Closing Stock from the following:Particulars( )Particulars( )Opening Stock38,000Sales3,60,000Purchases3,40,000Return Inwards5,000Return Outwards4,000Gross Loss20,000Freight Inwards26,000The solution for this question is as follows:Cost of Goods Sold Net Sale – Gross Profit (3,60,000 – 5,000) 20,000 3,75,000

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsCost of Goods Sold Opening Stock Net Purchases Direct Expenses – Closing Stock3,75,000 38,000 (3,40,000 -4,000) 26,000 – Closing StockClosing Stock 4,00,000 – 3,75,000 25,000Q.6 From the following information, prepare the Trading Account for the year ended 31st March, 2017: Cost of Goods Sold12,10,000Opening Stock50,000Closing Stock80,000Carriage Inwards15,000Sales15,00,000The solution for this question is as follows:Trading AccountDr.Cr.ParticularsAmount ParticularsAmount Cost of Goods Sold12,10,000Sales15,00,000Gross Profit (Balancing Figure)2,90,00015,80,00015,80,000

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsQ.7(A) Calculate gross profit and cost of goods sold from the following information:Net Sales 8,00,000Gross Profit is 40% on SalesThe solution for this question is as follows:Gross Profit 40% of sale 40/100 X 8,00,000 3,20,000Cost of Goods sold Sales – Gross Profit 8,00,000 – 3,20,000 4,80,000Q.7(B) Calculate gross profit and cost of goods sold from the following information:Net Sales 12,00,000Gross Profit33 ½ %The solution for this question is as follows:Gross Profit 33 ½ % on sale 100 / 3X100 X 12,00,000 12,00,000 / 3 4,00,000Cost of Goods sold Sales – Gross Profit 12,00,000- 4,00,000 8,00,000Q.8 Calculate the gross profit and cost of goods sold from the following information:Net Sales 9,00,000Gross Profit is 20% on cost.The solution for this question is as follows:Gross Profit 20% on cost or 15th on cost15th on cost 16th on sales

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsTherefore, Gross Profit 16 X 9,00,000 1,50,000Cost of Goods Sold Sales – Gross Profit 9,00,000 – 1,50,000 7,50,000Q.9 Ascertain the value of the closing stock from the following: Opening Stock1,20,000Purchases during the year9,30,000Sales during the year15,60,000Rate of Gross Profit40% on SalesThe solution for this question is as follows:Gross Profit 30% on costLet the cost of sold goods be ‘x’Gross Profit And Gross profit Cost of Goods Sold Opening Stock Net Purchases Direct Expenses – Closing Stock15,00,000 4,80,000 13,60,000 0 – Closing StockClosing Stock 18,00,000 – 15,00,000 3,40,000

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsQ.10 Calculate Net Sales and G.P. from the following:Cost of Goods Sold 4,50,000G.P.25% on SalesThe solution for this question is as follows:Gross Profit 25% on sales or 1/4th on sales14 on sales 13rd on costGross Profit 13 X 4,50,000 1,50,000Cost of Goods sold Sales – Gross Profit4,50,000 Sales – 1,50,000Sales 6,00,000Q.11 Prepare Profit and Loss Account for the year ended 31st March, 2017 from the following particulars:Particulars( )Particulars( )General expenses12,000Gross profit7,69,000Charity3,000Carriage Outwards20,000Office Lighting5,000Office Expenses16,000Law Charges5,800Fire Insurance Premium18,000Advertisement14,200Telephone Expenses13,500Bank charges1,200Establishment expenses2,500Commission7,000Miscellaneous Expenses7,100Rent, Rates and Taxes30,000Discount Received6,200Interest on investments12,000Traveller’s salary60,000Sundry Receipts6,000Repair4,300Indirect expenses2,100Commission Cr.2,000Printing and Stationery1,500

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsThe solution for this question is as follows:Profit and Loss Account for the year ended March 31, 2017Dr.Cr.ParticularsAmount ParticularsAmount General Expenses12,000Gross Profit7,69,000Charity3,000Interest on Investments12,000Office Lighting5,000Sundry Receipts6,000Law Charges5,800Discount Received6,200Advertisement14,200Commission Received2,000Bank Charges1,200Commission7,000Rent, Rates and Taxes30,000Indirect Expenses2,100Printing & Stationery1,500Carriage Outwards20,000Office Expenses16,000Fire Insurance Premium18,000Telephone Expenses13,500Establishment Expenses2,500Miscellaneous Expenses7,100Traveller’s Salary60,000Repair4,300

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsNet Profit5,72,0007,95,2007,95,200Q.12 Calculate the amount of gross profit, operating profit and net profit on the basis of the followingbalances extracted from the books of M/s Rajiv & Sons for the year ended March 31, 2017. Opening Stock50,000Net Sales11,00,000Net Purchases6,00,000Direct Expenses60,000Administration Expenses45,000Selling and Distribution Expenses65,000Loss due to Fire20,000Closing Stock70,000The solution for this question is as follows:

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsTrading Account for the year ended March 31, 2017Dr.Cr.ParticularsAmount ParticularsAmount Opening Stock50,000Net Sales11,00,000Net Purchases6,00,000Closing Stock70,000Direct Expenses60,000Gross Profit (Balancing Figure)4,60,00011,70,00011,70,000Profit and Loss Account for the year ended March 31, 2017Dr.Cr.ParticularsAmount ParticularsAmount Administration Expenses45,000Gross Profit4,60,000Selling & Distribution Expenses65,000Loss by Fire20,000Net Profit3,30,0004,60,0004,60,000Working Note:Operating Profit Net Profit Non-Operating Income Non-Operating Expenses 3,30,000 0 20,000 Rs 3,50,000Operating Profit Net Profit Non-Operating Income Non-Operating Expenses 3,30,000 0 20,000 Rs 3,50,000Since, loss by fire is a non-operating expense, therefore, it is added to the net profit to appear on the operatingprofit.

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsQ.13 Calculate the operating profit from the following: Net Profit5,00,000Dividend Received6,000Loss on sale of Furniture12,000Loss by Fire50,000Salaries1,20,000Interest on Loan from Bank10,000Rent Received24,000Donation5,100The solution for this question is as follows:Operating Profit Net Profit Non-Operating Income Non-Operating ExpensesNon-Operating Income Dividend Received Rent Received 6,000 24,000 30,000Non-Operating Expenses Loss on Sale of Furniture Loss by Fire Interest on Loan Donation 12,000 50,000 10,000 5,100 77,100Operating Profit 5,00,000 30,000 77,100 5,47,100Operating Profit Net Profit Non-Operating Income Non-Operating ExpensesNon-Operating Income Dividend Received Rent Received 6,000 24,000 30,000Non-Operating Expenses Loss on Sale of Furniture Loss by Fire Interest on Loan Donation 12,000 50,000 10,000 5,100 77,100Operating Profit 5,00,000 30,000 77,100 5,47,100

DK Goel Solutions for Class 11 Accountancy Chapter 21Financial StatementsNote: Salary is an operating expense and taken while evaluating net profit, so, it will not be calculated now.Q.14 A merchant has earned a Net Profit of 57,200 for the year ended 31st March 2017. Other balancesin his Ledger are as under: Dr. Balances Cr. Balances Cash at Bank4,800Bills Payable3,200Cash in Hand1,200Creditors61,300Furniture and 0Closing Stock70,000Motor Car40,000Building1,50,000Plant and Machinery1,20,000Bills re his Balance Sheet as at 31st March, 2017.The solution for this question is as follows: