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Cheat sheet · Class 11 · CBSE · Commerce Accountancy

Financial Statements – I cheat sheet

The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.

CBSE Class 11 · Accountancy

Cheat sheet

Chapter 8Financial Statements – I

Trading A/c → Gross profit; P&L A/c → Net profit; Balance Sheet → position.

1. Trading Account

GP=Sales−Cost of goods sold\text{GP} = \text{Sales} - \text{Cost of goods sold}
COGS=Opening stock+Purchases+Direct expenses−Closing stock\text{COGS} = \text{Opening stock} + \text{Purchases} + \text{Direct expenses} - \text{Closing stock}

2. Profit and Loss Account

NP=GP+Other income−Indirect expenses\text{NP} = \text{GP} + \text{Other income} - \text{Indirect expenses}

Indirect: salaries, rent, advertising, depreciation, interest.

3. Capital vs Revenue

BasisCapitalRevenue
Expenditurebuys fixed assets; long-term benefitday-to-day running; benefit within a year
Receiptloans, sale of fixed assetssales, commission, interest
Shown inbalance sheettrading / P&L

Deferred revenue expenditure: big advertising campaigns written off over years.

4. Balance Sheet

  • Assets: fixed, current (stock, debtors, cash).
  • Liabilities: capital, long-term loans, current liabilities.
  • Order: liquidity or permanence.

5. Key Points

  • Closing stock appears in Trading A/c and Balance Sheet (if outside TB).
  • Carriage inwards is direct; carriage outwards indirect.
  • Opening stock comes from the TB.
  • Marshalling = arranging balance sheet items.

Remember: GP & NP | COGS | capital vs revenue

Financial Statements – I: questions and notes

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