Question 8 Chapter 1 – Unimax Publications of Class 11

Q-8 - CH-1 Solution-min

Question 8 Chapter 1 – Unimax

Free Accounting book Solution - Class 11 and Class 12

8. Calculate Merchandise Cost, gross profit and net income from the following:

  Rs.
Purchases (3,000 articles) 25,000
Freight 1,500
Local Taxes 1,000
Salaries 2,500
Shop Rent 500
Godown Rent 500
Electric Charges 600
Municipal Taxes 200
Stationery 250
Furniture (estimated life 5 years) 12,000
Sales (2,700 Articles) 32,000

The solution of Question 8 Chapter 1 – Unimax: 

Merchandise Cost = Opening Stock + Net Purchases + Direct Expenses –
Closing Stock (from see it working note)
  = Rs. Nil +25,000 +2,500-2,750
  = Rs. 24,750
   
Gross Profit = Net Sales – Merchandise Cost
  = Rs. 32,000-24,750
  = Rs. 7,250
   
Net Income = Gross Profit- Indirect ( Operating Expenses)
  = Rs. 7,250- 6,950
  = Rs. 300

Working Notes: –

1. Calculation of Closing Stock  
   
Total number of articles purchased 3,000
Less number of articles sold 2,700
Number of Remaining articles 300
Total Cost of 3,000 articles 25,000
Add Direct Expenses (Freight, Local Taxes) 2,500
Total Cost of 3,000 articles 27,500
   
If number of articles 3,000 then cost 27,500
If number of article 1 then cost 27,500
3,000
If number of articles 300 then cost  = 27,500  X  300 articles
3,000

Closing Stock = Rs. 2,750

2. Calculation of Indirect Expenses

Salaries 2,500
Shop Rent 500
Godown Rent 500
Electric Charges 600
Municipal Taxes 250
Stationery 200
Depreciation on Furniture (12,000/5 years) 2,400
Indirect Expenses 6950

This is all about the Question 8 Chapter 1 – Unimax. You can check out the following article to better understand:

Financial Accounting Terminology

You Can also read all above articles in Hindi on our Hindi Website

Financial Accounting Terminology – Explained in Hindi

Thanks, Please Like and share with your friends  

Comment if you have any doubt in the Question 8 Chapter 1 – Unimax.

You can also Check out the solved question of other Chapters: –

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

  • Chapter No. 1 – Introduction of Accounting
  • Chapter No. 2 – Theory Base of Accounting
  • Chapter No. 3 – Vouchers and Transactions
  • Chapter No. 4 – Journal
  • Chapter No. 5 – Goods and Services Tax (GST) : An Introduction
  • Chapter No. 6 – Ledger
  • Chapter No. 7 – Special Purpose Book – Cash Book
  • Chapter No. 8 – Other Subsidiary Books
  • Chapter No. 9 – Trial Balance
  • Chapter No. 10 – Rectification of Errors
  • Chapter No. 11 – Depreciation
  • Chapter No. 12 – Provision and Reserves
  • Chapter No. 13 – Bank Reconlciliation Statement
  • Chapter No. 14 – Bills of Exchange

Students may Choose only one part from the Part II and Part III

Part-II

  • Chapter No. 15 – Financial Statements (Without Adjustments)
  • Chapter No. 16 – Financial Statements (With Adjustments)
  • Chapter No. 17 – Accounts from Incomplete Records – Single Entry System

Part-III

  • Chapter No. 18 – Introduction to Compurters and Accounting information System
  • Chapter No. 19 – Computerised Accounting
  • Chapter No. 20 – Accounting Software : Tally
  • Chapter No. 21 – Data Base System
  • Chapter No. 22 – Concept of Entity and Relationship

You can also Check out the other Books’ Solution: –

Leave a Reply

Your email address will not be published.