DK Goel Solutions Class 11 Accountancy Chapter 21 Financial Statement

Read DK Goel Class 11 Accountancy Solutions for Chapter 21 Financial Statement below. These DK Goel Accountancy Class 11 solutions have been prepared based on the latest book for DK Goel Class 11 for the current academic year by expert accounts teachers at studiestoday.com. These DK Goel Class 11 Solutions help commerce students in class 11 understand accountancy and build a strong base in accounts. Students in Class 11 who study accountancy and use the DK Goel Accountancy book to understand concepts of Chapter 21 Financial Statement should understand the concepts and solve practice questions and exercises given at the end of the chapter. We have provided solutions for all questions and have also provided short notes for each problem. This will help Class 11 DK Goel Accountancy students to understand the questions properly. Refer to the solutions provided below prepared by CBSE NCERT teachers

Chapter 21 Financial Statement DK Goel Class 11 Solutions

Class 11 Accountancy students should read the following DK Goel Solutions for Class 11 Chapter 21 Financial Statement in Standard 11. All solutions provided below can be downloaded in Pdf and are available for free. This DK Goel Book for Grade 11 Accountancy will be very useful for exams and help you to score good marks in Class 11 accountancy examinations. On our website www.studiestoday.com, we have provided solutions for all chapters given in the DK Goel Accountancy Book for Class 11.

DK Goel Solutions Chapter 21 Financial Statement Class 11 Accountancy

Short Answer Questions

Question 1. 

Solution  1: On the basis of financial statement they can judge as to how much bonus and increase in their wages is possible from the profits of the enterprise.

 

Question 2. 

Solution  2: They can assess the short-term and long –term financial soundness and earning capacity of the business with the help of financial statement. They can also study the trend of sales, trend of profit, shortcomings and the prospects of future growth of the enterprise.

 

Question 3.

Solution  3: Operating profit is the profit earned through normal operating activities of the business. It is arrived at by deducting the operating express from gross profit. Expenses which are related to the main or normal activities of the business are called operating expenses.

 

Question 4. 

Solution  4: Indirect expenses are those expenses which are incurred and are not directly associated with the purchases of goods or manufacture of goods.

The two examples of indirect expenses are:

  1. Office salaries.
  2. Warehouse expenses.
 

Question 5. 

Solution  5:

DK Goel Solutions Class 11 Accountancy Financial Statement

 

Question 6. 

Solution  6: A balance sheet is prepared to ascertain the financial position of an enterprise on a particular date. It shows liabilities on the left hand side and assets on right hand side.

 

Question 7. 

Solution  7: Grouping means showing the assets or liabilities of similar nature common heading and Marshalling means showing the assets and liabilities in a proper order.

 

Question 8. 

Solution  8: According to this method an asset which is most easily convertible into cash such as cash in hand is written first and then will follow those assets which are comparatively less easily convertible so that the least liquid asset such as goodwill is shown last.

 

Question 9. 

Solution  9: An asset which is most easily convertible into cash such as cash in hand is written first and then will follow those assets which are comparatively less easily convertible so that the least liquid asset such as goodwill is shown last.

 

Question 10. 

Solution  10: Current Assets are those assets which are held for resale or for converting into cash. These are the assets which are likely to be realized within a period of one year or during the period of normal operating cycle. A business earns profit by selling these assets but not by keeping them as stock for a longer period. These assets are temporary in nature and may change from time to time. These are sometimes referred to as floating or circulating assets.

Non-Current Assets are those assets are which are acquired for continuous use and last for many years such as Land and Building, Plant and Machinery, Motor Vehicles, Furniture etc.

 

Question 11. 

Solution  11: Example of Fixed Assets:-

1.) Land and Building

2.) Plant and Machinery

 

Example of Current Assets:-

1.) Cash

2.) Stock

 

Question 12. 

Solution  12: These are the liabilities which will become payable only on the happing of some specific event, otherwise not such as:-

(i) Liabilities for bill discounted

(ii) Liabilities in respect of a suit pending in a court of law

(iii) Liability in respect of a guarantee give for another person.

 

Question 13. 

Solution  13:

DK Goel Solutions Class 11 Accountancy Financial Statement-Q13

 

Question 14.

Solution  14: Those liabilities which are to be paid at the earliest will be written first. In other words, current liabilities are written first of all, then non-current or long-term liabilities and lastly the proprietor’s capital.

 

Numerical Questions

Question 1. 

Solution 1:

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q1-Sol

Point of Knowledge:-

Trading Account is the account that reveals the gross profit or gross loss. It is credited with the amount of sales of goods and debited with the opening stock of goods along with the direct expenses related to the sales made. Trading Account is prepared to know gross profit or gross loss during the accounting period.

 

Question 2. (A)

Solution 2:  (A)

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q2

Working Note:-

Calculation of Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock

Point of Knowledge:-

Closing stock is not showing separately in trading account as it is already subtracted in adjusted purchases.

 

Solution 2:  (B) Calculate Gross Profit from the following information:

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q2B

Working Note:-

Calculation of Adjusted Purchases = Opening Stock + Net Purchases – Closing Stock

Point of Knowledge:-

Closing stock is not showing separately in trading account as it is already subtracted in adjusted purchases.

 

Question 3. (A) 

Solution 3: (A) Calculation of Cost of Goods Sold:-

Cost of Goods Sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Cost of Goods Sold = 40,000 + 50,000 + 10,000 – 15,000

Cost of Goods Sold = Rs. 85,000

 

Question 3. (B) 

Solution 3 (B): 

Calculation of Gross Profit:-

Gross Profit = Net Sales – COGS (Cost of goods sold)

Gross Profit = Rs. 3,92,000 – Rs. 3,92,000

Gross Profit = Rs. 1,10,000

 

Calculation of Cost of Goods Sold:-

Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Cost of goods sold = Rs. 32,000 + Rs. 2,80,000 + Rs. 20,000 – Rs. 50,000

Cost of goods sold = Rs. 2,82,000

 

Calculation of Net Sales:-

Net Sales = Sales – Sales Return

Net Sales = Rs. 4,00,000 – Rs. 8,000

Net Sales = Rs. 3,92,000

 

Question 4.

Solution 4 :

Calculation of Gross Profit:-

Gross Profit = Net Sales – COGS (Cost of goods sold)

Gross Profit = Rs. 6,00,000 – Rs. 5,40,000

Gross Profit = Rs. 60,000

 

Calculation of Cost of Goods Sold:-

Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Cost of goods sold = Rs. 0 + Rs. 6,50,000 + Rs. 70,000 – Rs. 0

Cost of goods sold = Rs. 7,20,000

Cost of goods sold = ¾ × 7,20,000

Cost of goods sold = Rs. 5,40,000

 

Calculation of Net Purchases:-

Net Purchases = Purchases – Purchases Return

Net Purchases = Rs. 6,80,000 – Rs. 30,000

Net Purchases = Rs. 6,50,000

 

Calculation of Direct Expenses:-

Direct Expenses = Carriage Inwards + Wages

Direct Expenses = Rs. 20,000 + Rs. 50,000

Direct Expenses = Rs. 70,000

 

Question 5. (A)

Solution 5: (A) 

Calculation of Closing Stock:-

Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Closing Stock = Opening Stock + Purchases + Direct Expenses – COGS

Closing Stock = Rs. 5,000 + Rs. 9,100 + Rs. 1,000 – Rs. 9,000

Closing Stock = Rs. 6,100

 

Calculation of Cost of Goods Sold:-

Cost of goods sold = Net Sales – Gross Profit

Cost of goods sold = Rs. 15,000 – Rs. 6,000

Cost of goods sold = Rs. 9,000

 

Calculation of Net Purchases:-

Net Purchases = Purchases - Purchases Return

Net Purchases = Rs. 10,000 - Rs. 900

Net Purchases = Rs. 9,100

 

Question 5. (B)

Solution 5 (B):

 Calculation of Closing Stock:-

Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Closing Stock = Opening Stock + Purchases + Direct Expenses – COGS

Closing Stock = Rs. 38,000 + Rs. 3,36,000 + Rs. 26,000 – Rs. 3,75,000

Closing Stock = Rs. 25,000

 

Calculation of Cost of Goods Sold:-

Cost of goods sold = Net Sales + Gross Loss

Cost of goods sold = Rs. 3,60,000 – Rs. 5,000 + Rs. 20,000

Cost of goods sold = Rs. 3,75,000

 

Calculation of Net Purchases:-

Net Purchases = Purchases - Purchases Return

Net Purchases = Rs. 3,40,000 - Rs. 4,000

Net Purchases = Rs. 3,36,000

 

Question 6. (A)

Solution 6: (A) Net Sales = Rs. 8,00,000

Gross Profit = Sales × 40%

Gross Profit = Rs. 8,00,000 × 40%

Gross Profit = Rs. 3,20,000

Cost of Goods Sold = Sales – Gross Profit

Cost of Goods Sold = Rs. 8,00,000 – Rs. 3,20,000

Cost of Goods Sold = Rs. 4,80,000

 

Question 6. (B)

Solution 6: (B)

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q6B

Cost of Goods Sold = Sales – Gross Profit

Cost of Goods Sold = Rs. 12,00,000 – Rs. 4,00,000

Cost of Goods Sold = Rs. 8,00,000

 

Question 7.

Solution 7:

Net Sales = Rs. 9,00,000

Gross Profit = Sales × 20%

We know,

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q7

Cost of Goods Sold = Sales – Gross Profit

Cost of Goods Sold = Rs. 9,00,000 – Rs. 1,50,000

Cost of Goods Sold = Rs. 7,50,000

 

Question 8.

Solution 8:

Calculation of Closing Stock:-

Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Closing Stock = Opening Stock + Purchases + Direct Expenses – COGS

Closing Stock = Rs. 1,20,000 + Rs. 9,30,000 + Rs. 0 – Rs. 9,36,000

Closing Stock = Rs. 10,50,000 – Rs. 9,36,000

Closing Stock = Rs. 1,14,000

 

Calculation of Cost of Goods Sold:-

Cost of Goods sold = Net Sales – Gross Profit

Cost of Goods sold = Rs. 15,60,000 – Rs. 6,24,000

Cost of Goods sold = Rs. 9,36,000

 

Calculation of Gross Profit:-

Gross Profit = 40% of Sales

Gross Profit = Rs. 15,60,000 × 40%

Gross Profit = Rs. 6,24,000

 

Question 9.

Solution 9:

Calculation of Closing Stock:-

Cost of goods sold = Opening Stock + Purchases + Direct Expenses – Closing Stock

Closing Stock = Opening Stock + Purchases + Direct Expenses – COGS

Closing Stock = Rs. 4,80,000 + Rs. 13,60,000 + Rs. 0 – Rs. 15,00,000

Closing Stock = Rs. 18,40,000 – Rs. 15,00,000

Closing Stock = Rs. 3,40,000

 

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q10

 

Calculation of Cost of Goods Sold:-

Cost of Goods Sold = Sales – Gross Profit

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q 9

 

Question 10.

Solution 10 :         Gross Profit = 25% on sales

We know,

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q 10

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q 10-

Calculation of Sales:-

Cost of goods sold = Sales + Gross Profit

Sales = Cost of goods sold + Gross Profit

Sales = Rs. 4,50,000 + Rs. 1,50,000

Sales = Rs. 6,00,000

 

Question 11.

Solution 11:

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q11-

Question 12.

Solution 12:

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q12-

Working Note:-

Calculation of Operating Profit:-

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

Operating Profit = Rs. 3,30,000 – Rs. 0 + Rs. 20,000

Operating Profit = Rs. 3,50,000

 

Point of Knowledge:-

Trading Account is the account that reveals the gross profit or gross loss. It is credited with the amount of sales of goods and debited with the opening stock of goods along with the direct expenses related to the sales made. Trading Account is prepared to know gross profit or gross loss during the accounting period.

 

Question 13.

Solution 13: 

Calculation of Operating Profit:-

Operating Profit = Net Profit − Non-Operating Income + Non-Operating Expenses

Operating Profit = 5,00,000 − 30,000 + 77,100

Operating Profit = Rs 5,47,100

 

Non-Operating Income = Dividend Received + Rent Received

Non-Operating Income = 6,000 + 24,000

Non-Operating Income = 30,000

 

Non-Operating Expenses = Loss on Sale of Furniture + Loss by Fire + Interest on Loan + Donation

Non-Operating Expenses = 12,000 + 50,000 + 10,000 + 5,100

Non-Operating Expenses = Rs 77,100

 

Question 14.

Solution 14:

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical Q14-

 

Working Note:-

Balance Sheet is prepared with a view to measure true financial position of a business at a particular point of time. It is a method to show the financial position of a business in a systematic and standard form. The financial position of the business can be understood at a glance. The debit and credit balances of related accounts are shown on the assets and liabilities side of the Balance Sheet.

 

Question 15. 

Solution 15:

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ15

Goel%20Solutions%20Class%2011%20Accountancy%20Financial%20Statement-NumericalQ15-.PNG

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ15-1

Working Note:-

Indirect expenses are those expenses which are incurred and are not directly associated with the purchases of goods or manufacture of goods.

The two examples of indirect expenses are:

  1. Office salaries.
  2. Warehouse expenses
 

Question 16.

Solution 16

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical-Sol.16

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical-Sol.16-

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical-Sol.16-1

Point of Knowledge:-

Current Assets are those assets which are held for resale or for converting into cash. These are the assets which are likely to be realized within a period of one year or during the period of normal operating cycle. A business earns profit by selling these assets but not by keeping them as stock for a longer period. These assets are temporary in nature and may change from time to time. These are sometimes referred to as floating or circulating assets.

 

Question 17. 

Solution 17:

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical-Q 17

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical-Q 17-

DK Goel Solutions Class 11 Accountancy Financial Statement-Numerical-Q 17-1

Working Note:-

Calculation of Drawings:-

Drawings = Household Expenses + Life Insurance Premium

Drawings = Rs. 10,000 + Rs. 1,800

Drawings = Rs. 11,800

 

Question 18.

Solution 18:

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ18-1

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ18-2

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ18-3

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ18-4

 

Point of Knowledge:-

Current Assets are those assets which are held for resale or for converting into cash. These are the assets which are likely to be realized within a period of one year or during the period of normal operating cycle. A business earns profit by selling these assets but not by keeping them as stock for a longer period. These assets are temporary in nature and may change from time to time. These are sometimes referred to as floating or circulating assets.

 

Question 19.

Solution 19:

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ19-Sol

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ19-Sol-

DK Goel Solutions Class 11 Accountancy Financial Statement-NumericalQ19-Sol-1

Point of Knowledge:-

Direct expenses are those expenses which are incurred on purchases of goods up to the point of bringing them to the place of business. In the case of manufacturing business, they are the expenses incurred to make then ready for sale.

The two examples of direct expenses are:

  1. Octroi paid on purchases.
  2. Power Expenses
 

Question 20. 

Solution 20: Below is the Presentation of assets in the order of Permanence:

  1. Goodwill
  2. Land and Building
  3. Plant and Machinery
  4. Motor Vehicle
  5. Loose Tools
  6. Furniture
  7. Investment (Long-term)
  8. Stock
  9. Sundry Debtors
  10. Marketable Securities (Short-term)
  11. Cash at Bank
  12. Cash in Hand

Point of Knowledge:-

Current Assets are those assets which are held for resale or for converting into cash. These are the assets which are likely to be realized within a period of one year or during the period of normal operating cycle. A business earns profit by selling these assets but not by keeping them as stock for a longer period. These assets are temporary in nature and may change from time to time. These are sometimes referred to as floating or circulating assets.

DK Goel Solutions Class 11 Accountancy Chapter 1 Meaning and Objective of Accounting
DK Goel Solutions Class 11 Accountancy Chapter 2 Basic Accounting Terms
DK Goel Solutions Class 11 Accountancy Chapter 3 Accounting Principles
DK Goel Solutions Class 11 Accountancy Chapter 4 Process and Bases of Accounting
DK Goel Solutions Class 11 Accountancy Chapter 5 Accounting Standards and International Financial Reporting Standards
DK Goel Solutions Class 11 Accountancy Chapter 6 Accounting Equations
DK Goel Solutions Class 11 Accountancy Chapter 7 Double Entry System
DK Goel Solutions Class 11 Accountancy Chapter 8 Origin of Transactions Source Documents of Accountancy
DK Goel Solutions Class 11 Accountancy Chapter 9 Books of Original Entry Journal
DK Goel Solutions Class 11 Accountancy Chapter 10 Accounting for Goods and Service Tax
DK Goel Solutions Class 11 Accountancy Chapter 11 Books of Original Entry Cash Book
DK Goel Solutions Class 11 Accountancy Chapter 12 Books of Original Entry Special Purpose Subsidiary Books
DK Goel Solutions Class 11 Accountancy Chapter 13 Ledger
DK Goel Solutions Class 11 Accountancy Chapter 14 Trial Balance and Errors
DK Goel Solutions Class 11 Accountancy Chapter 15 Bank Reconciliation Statement
DK Goel Solutions Class 11 Accountancy Chapter 16 Depreciation
DK Goel Solutions Class 11 Accountancy Chapter 17 Provision and Reserves
DK Goel Solutions Class 11 Accountancy Chapter 18 Bills of Exchange
DK Goel Solutions Class 11 Accountancy Chapter 19 Rectification of Errors
DK Goel Solutions Class 11 Accountancy Chapter 20 Capital and Revenue
DK Goel Solutions Class 11 Accountancy Chapter 21 Financial Statement
DK Goel Solutions Class 11 Accountancy Chapter 22 Financial Statements With Adjustments
DK Goel Solutions Class 11 Accountancy Chapter 23 Accounts from Incomplete Records
DK Goel Solutions Class 11 Accountancy Chapter 24 Introduction to Computer
DK Goel Solutions Class 11 Accountancy Chapter 25 Introduction of Accounting Information System
DK Goel Solutions Class 11 Accountancy Chapter 26 Computerised Accounting System
DK Goel Solutions Class 11 Accountancy Chapter 27 Accounting Software Package Tally
TS Grewal Class 11 Solutions: Double Entry Book Keeping Financial Accounting
TS Grewal Accountancy Class 11 Solution Chapter 1 Introduction of Accounting
TS Grewal Accountancy Class 11 Solution Chapter 2 Basic Accounting Terms
TS Grewal Accountancy Class 11 Solution Chapter 3 Accounting Standards and IFRS
TS Grewal Accountancy Class 11 Solution Chapter 4 Bases of Accounting
TS Grewal Accountancy Class 11 Solution Chapter 5 Accounting Equation
TS Grewal Accountancy Class 11 Solution Chapter 6 Accounting Procedures Rules of Debit and Credit
TS Grewal Accountancy Class 11 Solution Chapter 7 Origin of Transactions Source Documents and Preparation of Voucher
TS Grewal Accountancy Class 11 Solution Chapter 8 Journal
TS Grewal Accountancy Class 11 Solution Chapter 9 Ledger
TS Grewal Accountancy Class 11 Solution Chapter 10 Special Purpose Books I Cash Book
TS Grewal Accountancy Class 11 Solution Chapter 11 Special Purpose Books II Other Book
TS Grewal Accountancy Class 11 Solution Chapter 12 Accounting of Goods and Services Tax (GST)
TS Grewal Accountancy Class 11 Solution Chapter 12 Bank Reconciliation Statement
TS Grewal Accountancy Class 11 Solution Chapter 13 Trial Balance
TS Grewal Accountancy Class 11 Solution Chapter 14 Depreciation
TS Grewal Accountancy Class 11 Solution Chapter 15 Provisions and Reserves
TS Grewal Accountancy Class 11 Solution Chapter 16 Accounting for Bills of Exchange
TS Grewal Accountancy Class 11 Solution Chapter 17 Rectification of Errors
TS Grewal Accountancy Class 11 Solution Chapter 18 Financial Statements of Sole Proprietorship
TS Grewal Accountancy Class 11 Solution Chapter 19 Adjustments in Preparation of Financial Statements
TS Grewal Accountancy Class 11 Solution Chapter 20 Accounts from Incomplete Records Single Entry System
TS Grewal Accountancy Class 11 Solution Chapter 21 Computers in Accounting
TS Grewal Accountancy Class 11 Solution Chapter 22 Accounting Software Tally