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NCERT Solutions for Class 11 Accountancy Chapter 9 Financial Statements - 1

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Class 11 Accountancy NCERT Solutions Chapter 9 Financial Statements 1

Vedantu provides easy to understand NCERT Solutions for Class 11 Accountancy Chapter 9. Our faculty have solved and explained all the questions given in the chapter, as per the CBSE guidelines, in the NCERT Solutions Class 11 Accountancy Chapter 9. The solutions to the questions are provided here in a PDF format to simplify the learning experience. Students can download the NCERT Solutions for Class 11 Accountancy Chapter 9 PDF from Vedantu for free. Referring to these NCERT Solutions will help them revise the chapter properly and secure good marks in the examinations. 

Now let's start with the basic questions related to Accountancy Class 11 Chapter 9.

NCERT Solutions for Class 11 Accountancy Chapter 9 Financial Statements 1 part-1
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FAQ (Frequently Asked Questions)

1. What is meant by operating profit?

An operating profit measures the profit that a company makes from its underlying business functions. So it is an overall accounting metric. It does not consider the deduction in interest and rules out the calculation of tax. The operating profit of a company is usually available on the income statement as a total amount. This calculation is not necessary to be equivalent to the cash flow of business, but it is to get an idea of the profit-making potential of a company before the accounting of expenses. 

The calculation formula for operating profit is as follows.

Operating Profit = Net Profit + Non-Operating Expenses – Non-Operating Incomes

2. What is the objective of preparing trading and profit and loss accounts?

A trading account is one of the most imperative books that must be maintained by a business organization in order to successfully maintain accounts for a particular financial year. The objectives of preparing a trading account are as follows.

  1. For determining the total profit or loss in a financial year or for a particular period.

  2. For determining the proportion of direct expenses and sales.

  3. For determining the proportion of gross profit and sales.

The objectives of preparing a profit and loss account are as follows.

  1. To determine the total profit or loss sustained by the business.

  2. To meet the terms and regulations in statutory legislation such as the Partnership Act or Company Act.

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