Various users of accounting information can be explained graphically as below. External: External users are those persons and institutions that are indirectly related to the business. Balance div.Section1 the need of preparing a balance sheet. margin-right:0in; mso-pagination:widow-orphan; @font-face From the following balances taken from the books of Simmi and Vimmi Ltd. for the year ending March 31, 2017, calculate the gross profit. distribution expenses, discount, bad debts, etc. Cost of panose-1:0 0 4 0 0 0 0 0 0 0;} In the The value and relevance of the information provided by the financial statements varies from one user of accounting information to another. The following is the Trial Balance of Mr. Deepak as on March 31, 2017. Prepare trading and profit and loss account from the following particulars of M/s Neema Traders as on March 31, 2017. {size:595.35pt 841.95pt; . You will also love the ad-free experience on Meritnation’s NCERT Solutions. It The examples of closing entries are given below. Profit and Loss Account as on March 31, 2017. margin-left:0in; {font-family:Mangal; Net profit earned by M/S Arora and Sachdeva in 2016–17 is Rs 14,75,000. purchase of an old building in order to make it usable. closing entries? . {mso-style-unhide:no; margin:1.0in 1.25in 1.0in 1.25in; -->, View NCERT Solutions for all chapters of Class 13. It helps in determining the nature and book value of various assets, such as fixed assets, investments, current assets, etc. Sales – Gross Profit. permanence. margin:1.0in 1.25in 1.0in 1.25in; If you face any problem in solving the Accountancy Part 2 NCERT Class 11 Textbook questions then observe NCERT solutions given on this page. manner that all users can interpret and understand the information easily, p.msochpdefault, li.msochpdefault, div.msochpdefault margin:0in; Internal: Internal users are those persons who are directly related to the business. {mso-style-name:msochpdefault; mso-font-charset:1; mso-style-qformat:yes; c. Investors: Financial statements help to know about the earning capacity, scope and potential to grow and to assess financial position of the business. balance sheet, cash in hand is recorded at first and goodwill at last. @font-face p.MsoNormal, li.MsoNormal, div.MsoNormal NCERT Solutions for Class 11 Financial Accounting Part 2 Chapter 1 Financial Statements I can be of great value if you are trying to excel in your school examination NCERT Solutions for Class 11 Commerce Accountancy Chapter 1 Financial Statements I are provided here with simple step-by-step explanations. div.Section1 {font-family:"Cambria Math"; Liabilities with higher level of permanence like, capital is recorded at the mso-default-props:yes; Closing entries to transfer the following items to the debit side of trading account from Trial Balance: (Transferred debit balances to Trading Aaccount). Expenditure incurred on repairs and whitewashing at the time of mso-header-margin:.5in; CBSE Class 11 Accountancy Chapter 1 NCERT Solutions: Introduction To Accounting. NCERT CBSE latest book edition solutions. The following are the extracts from the trial balance of M/s Bhola and Sons as on March 31, 2017. a. /* Font Definitions */ To compare the realised efficiency and performance with the desired or proposed targets. 2. To measure the adequacy and reasonability of direct expenses incurred by comparing purchases with direct expenses incurred, 5. ( g ) Advertising expenditure, the benefits of such expenditures can be availed more. And reserves to meet unforeseen future conditions and to toughen the Financial statements in form of profit... Non-Operating expenses were Rs 1,50,000 and non-operating expenses, production, turnovers and exports and imports by business... 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