Financial Statements from Complete Records Accountancy Class 11 Practice Questions 

1. Define financial statements.
2. What are the components of financial statements?
3. What are the objectives of preparing financial statements?
4. Make a list of direct expenses. 
5. Calculate the amount of gross profit and operating profit on the basis of the following balances extracted from the books of Rajiv Sahay for the year ended March 31, 2021: 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 .
6. Calculate Gross Profit and cost of goods sold from the following information     Particulars Amount Net Sales Rs 9,00,000 , Gross Profit 20%  on Cost.
7. Calculate Gross Profit on the basis of the following information : Amount Rs. Purchases 6,80,000 Return Outwards 30,000 Carriage Inwards 20,000 Carriage Outwards 15,000 Wages 50,000 3/4 of the goods are sold for Rs. 6,00,000. 
8. Calculate closing stock from the following: Opening stock Rs.36,000; Net purchases Rs.45,000; Salaries and wages Rs.7,000; Sales Rs.60,000; Gross loss Rs. 4,000; Freight Inward Rs.6,000. 
9. Calculate Gross profit and cost of goods sold from the following information: Net sales Rs.1,00,000 Gross profit Rs.25% on cost.
10. State whether the following expenses are capital or revenue in nature: a. Wages paid to install a machine. b. insurance premium paid as renewal premium.
11. Following balances were extracted from the books of Vijay on 31st March, 2021:

	Rs		Rs
Capital	2,45,000	loan	78,800
Drawings	20,000	Sales	6,53,600
General expenses	47,400	Purchases	4,70,000
Building	1,10,000	Motor car	20,000
Machinery	93,400	Provision for doubtful debts	9,000
Stock on 1st April,2020	1,62,000	Commission (cr.)	13,200
Insurance	13,150	Car expenses	18,000
wages	72,000	Bills payable	38,500
Debtors	62,800	Cash	800
Creditors	25,000	Bank overdraft	33,000
Bad debts	5,500	Charity	1,050

Prepare Trading and Profit and Loss a/c for the year ended 31st March,2021 after giving effect to the following adjustments.

1. Stock as on 31st March, 2021 was valued at Rs.2,30,000.

2. Write off further Rs.1800 as Bad debts and maintain the provision for doubtful debts at 5%.

3. Depreciate Machinery at 10%.

4. Provide Rs.7,000 as outstanding interest on loan.