# Question 8 Chapter 1 – Unimax Publications of Class 11

Question 8 Chapter 1 – Unimax

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

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Financial Accounting Terminology – Explained in Hindi

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## 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

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