Net profit earned by M/S Arora and Sachdeva in 2016–17 is Rs 14,75,000. Get step by step NCERT solutions for Class 11 Accountancy Chapter 1 - Financial Statements -I . mso-ansi-font-size:12.0pt; font-size:12.0pt; .MsoChpDefault You will also love the ad-free experience on Meritnation’s NCERT Solutions. panose-1:2 4 5 3 5 4 6 3 2 4;} permanence. mso-header-margin:.5in; TEST YOUR UNDERSTANDING I • State whether the following statements are true or false. 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. font-family:"Times New Roman","serif"; d. Bank and other financial institutions: Financial statements provide information to banks and other financial institutions, such as LIC, GIC, etc., about the credit worthiness, solvency and repaying capacity of the business. Contents1 NCERT Solutions For Class 11 Financial Accounting – Depreciation, Provisions and Reserves1.1 Short Answer Type Questions1.2 Long Answer Type Questions1.3 Numerical Questions NCERT Solutions For Class 11 Financial Accounting – Depreciation, Provisions and Reserves Short Answer Type Questions Q1. margin:0in; manner that all users can interpret and understand the information easily, Government: Government needs information in order to ascertain various macroeconomic variables, such as national income, GDP, employment opportunities generated, etc. There are various parameters such as ratio of direct (indirect) expenses to gross (net) profit, by the help of which management can check the adequacy, control and relevance of various expenses incurred and plans and policies implemented. It is called Balance Sheet as it contain balances of real and personal accounts, which are not closed on a particular date. {mso-style-name:msochpdefault; @font-face mso-font-charset:1; {mso-style-name:""; Also, to compare own performance with that of the other firms in the same industry, i.e., inter-firm comparisons. From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31st March,2018: To assess the solvency and credit worthiness of the business, 5. mso-style-qformat:yes; To measure the adequacy and reasonability of indirect expenses incurred by ascertaining ratio between indirect expenses and net profit, 4. margin-right:0in; mso-paper-source:0;} Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017. Financial Accounting Part 1. font-size:12.0pt; {font-family:"Cambria Math"; {page:Section1;} 1. is a balance sheet? mso-font-charset:1; Here on AglaSem Schools, you can access to NCERT Book Solutions in free pdf for Accountancy for Class 11 so that you can refer them as and when required. Closing entries to transfer the following items to the debit side of Profit and Loss Account from Trial Balance: (Transferred debit balances to Profit and Loss Account). Exam Pattern. We hope the TS Grewal Accountancy Class 11 Solutions Chapter 15 Financial Statements of Sole Proprietorship help you. Therefore, in order to match the two sides of the balance sheet, suspense account has been opened with an amount equal to the difference amount, i.e. panose-1:2 15 5 2 2 2 4 3 2 4;} To ascertain profit earned or loss incurred by a business during an accounting period. last year’s unsold stock and excludes closing stock if any, The assets with higher degree of permanence are recorded first, It discloses the true financial position of a business at a particular point of time. The value and relevance of the information provided by the financial statements varies from one user of accounting information to another. span.SpellE {mso-style-type:export-only; span.GramE Liabilities with higher level of permanence like, capital is recorded at the mso-bidi-font-size:12.0pt;} font-family:"Times New Roman","serif"; mso-font-charset:1; Free PDF download of NCERT Solutions for Class 11 Accountancy Chapter 9 Financial Statements - 1 solved by Expert Teachers as per NCERT CBSE Book guidelines. To ascertain net profit ratio and to compare this year’s net profit ratio with that of the desired and proposed target in order to assess the efficiency and effectiveness, 3. The examples of closing entries are given below. mso-margin-top-alt:auto; Closing entries to transfer the following items to the credit side of trading account from Trial Balance: (Transferred credit balances to Trading Account). margin:0in; p.MsoNormal, li.MsoNormal, div.MsoNormal margin:0in; margin:1.0in 1.25in 1.0in 1.25in; {size:595.35pt 841.95pt; The needs to prepare a Balance Sheet are given below. NCERT Books for Class 11 Accountancy – English Medium NCERT Solutions for Class 11 Accountancy Part 1 Financial Accounting {size:595.35pt 841.95pt; Solution: Question 4. , of all check the CBSE Class 11 Accountancy Part 2 Chapter 1 statements... Accounts from incomplete records: 3 value and relevance of the business M/s Ahuja and Nanda: the information by! 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