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CBSE · Class 11 · Accountancy

Financial Statements – I

Standard difficulty · 20 questions · 40 marks · Time: 44 minutes

Name: Date: Score: ____ / 40

Show your working for Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
Gross profit is found in the:
  1. balance sheet
  2. cash book
  3. profit and loss account
  4. trading account
2.
In the final accounts, where is “office salaries” shown?
  1. cash book
  2. balance sheet
  3. profit and loss account
  4. trading account
3.
A loan taken from a bank is a:
  1. deferred revenue expenditure
  2. revenue expenditure
  3. capital expenditure
  4. capital receipt
4.
Opening stock ₹53,000; purchases ₹2,05,000; purchases returns ₹6,000; wages ₹15,000; carriage inwards ₹2,500; closing stock ₹32,000. What is the cost of goods sold?
  1. ₹2,26,000
  2. ₹3,01,500
  3. ₹2,49,500
  4. ₹2,37,500
5.
Sales ₹2,96,000; sales returns ₹1,000; cost of goods sold ₹1,99,000. What is the gross profit?
  1. ₹94,000
  2. ₹97,000
  3. ₹96,000
  4. ₹98,000
6.
A firm’s net profit is ₹1,32,500 after charging interest on a loan of ₹4,500 and including interest received of ₹1,000. What is its operating profit?
  1. ₹1,36,000
  2. ₹1,32,500
  3. ₹1,38,000
  4. ₹1,29,000
7.
Opening capital ₹1,52,500; net profit ₹71,000; drawings ₹14,000. What capital is shown in the balance sheet?
  1. ₹2,23,500
  2. ₹2,37,500
  3. ₹2,09,500
  4. ₹95,500
8.
A balance sheet shows assets: Cash ₹10,500, Bank ₹5,500, Debtors ₹12,000, Stock ₹29,000, Furniture ₹48,000, Machinery ₹2,00,000. What is the balance sheet total?
  1. ₹3,44,000
  2. ₹1,05,000
  3. ₹3,05,000
  4. ₹1,96,000
Section B — Short answer8 × 2 = 16 marks
9.
What are financial statements?
10.
Trading account, profit and loss account, or balance sheet? (a) debtors (b) bank loan
11.
Capital or revenue, expenditure or receipt? (a) selling an old machine (b) commission earned
12.
Find the gross profit: opening stock ₹10,000, purchases ₹1,60,000, purchases returns ₹6,000, wages ₹23,500, carriage inwards ₹5,500, sales ₹3,05,000, sales returns ₹3,000, closing stock ₹44,000.
13.
Gross profit is ₹1,85,500. Other items: salaries ₹36,000, rent ₹17,000, advertisement ₹14,500, carriage outwards ₹2,000, interest on loan ₹5,000, commission received ₹4,000, interest received ₹3,500. Find (a) the net profit (b) the operating profit.
14.
Find the closing capital: assets Cash ₹2,000, Bank ₹11,500, Debtors ₹34,500, Stock ₹19,000, Furniture ₹13,000, Machinery ₹1,80,000; liabilities Creditors ₹32,000, Bank Loan ₹60,000.
15.
Closing capital is ₹1,69,500, net profit for the year ₹25,000 and drawings ₹17,000. Find the opening capital.
16.
Is each a direct or an indirect expense? (a) office rent (b) carriage outwards
Section C — Word problems4 × 4 = 16 marks
17.
Explain the trading account and the items shown in it.
18.
Prepare the trading and profit and loss account for the year ending 31 March from: opening stock ₹49,000, purchases ₹2,86,000, purchases returns ₹2,000, wages ₹9,500, carriage inwards ₹5,500, sales ₹4,39,000, sales returns ₹4,000, closing stock ₹37,000; salaries ₹49,000, rent ₹15,000, advertisement ₹9,000, carriage outwards ₹2,500, interest on loan ₹6,000, commission received ₹2,000, interest received ₹4,500. Show (a) the cost of goods sold (b) the gross profit (c) the net profit (d) the operating profit.
19.
Prepare a balance sheet on 31 March: Cash ₹14,500, Bank ₹7,000, Debtors ₹22,500, Stock ₹32,000, Furniture ₹12,000, Machinery ₹1,50,000, Creditors ₹44,500, Bank Loan ₹80,000; opening capital ₹1,13,500, net profit ₹16,000, drawings ₹16,000.
20.
Pass the opening entry on 1 April from these balances: Cash ₹8,000, Bank ₹35,500, Debtors ₹55,500, Stock ₹12,000, Furniture ₹18,000, Machinery ₹1,50,000, Creditors ₹43,500, Bank Loan ₹25,000. Find the capital.
AmbifulWorksheets
Practice that never repeats
CBSE · Class 11 · Accountancy

Answer key

Financial Statements – I · AW-11AC-FS1-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) trading account—
2(c) profit and loss account—
3(d) capital receipt—
4(d) ₹2,37,500₹53,000 + ₹2,05,000 − ₹6,000 + ₹15,000 + ₹2,500 − ₹32,000
5(c) ₹96,000₹2,96,000 − ₹1,000 − ₹1,99,000
6(a) ₹1,36,000Operating profit = net profit + non-operating expenses − non-operating incomes = ₹1,32,500 + ₹4,500 − ₹1,000
7(c) ₹2,09,500₹1,52,500 + ₹71,000 − ₹14,000
8(c) ₹3,05,000₹10,500 + ₹5,500 + ₹12,000 + ₹29,000 + ₹48,000 + ₹2,00,000
9The trading and profit and loss account (income statement) and the balance sheet, prepared at the end of a period.—
10(a) balance sheet (b) balance sheet—
11(a) capital receipt (b) revenue receipt—
12₹1,53,000Net sales ₹3,02,000 − cost of goods sold (₹10,000 + ₹1,54,000 + ₹23,500 + ₹5,500 − ₹44,000 = ₹1,49,000) = ₹1,53,000
13(a) ₹1,18,500; (b) ₹1,20,000₹1,85,500 + ₹7,500 − ₹74,500; operating: + ₹5,000 − ₹3,500
14₹1,68,000₹2,60,000 − ₹92,000
15₹1,61,500₹1,69,500 − ₹25,000 + ₹17,000
16(a) indirect (b) indirect—
17It finds the gross profit: debit side opening stock, purchases less returns, direct expenses; credit side sales less returns and closing stock.—
18(a) ₹3,11,000; (b) ₹1,24,000; (c) ₹49,000; (d) ₹50,500Net sales ₹4,35,000 − cost of goods sold (₹49,000 + ₹2,84,000 + ₹9,500 + ₹5,500 − ₹37,000 = ₹3,11,000) = ₹1,24,000; net profit = ₹1,24,000 + ₹2,000 + ₹4,500 − ₹49,000 − ₹15,000 − ₹9,000 − ₹2,500 − ₹6,000; operating = ₹49,000 + ₹6,000 − ₹4,500
19Liabilities side: capital ₹1,13,500 + ₹16,000 − ₹16,000 = ₹1,13,500; Creditors ₹44,500, Bank Loan ₹80,000; total ₹2,38,000
Assets side: Machinery ₹1,50,000, Furniture ₹12,000, Stock ₹32,000, Debtors ₹22,500, Bank ₹7,000, Cash ₹14,500; total ₹2,38,000		Both sides total the same
20Cash A/c Dr. ₹8,000
Bank A/c Dr. ₹35,500
Debtors A/c Dr. ₹55,500
Stock A/c Dr. ₹12,000
Furniture A/c Dr. ₹18,000
Machinery A/c Dr. ₹1,50,000
To Creditors A/c ₹43,500
To Bank Loan A/c ₹25,000
To Capital A/c ₹2,10,500
(Being balances brought forward from last year)		Capital = ₹2,79,000 − ₹68,500 = ₹2,10,500