Analysis Of Financial Statements Ts Grewal 2018 Solutions for Class 12 Commerce Accountancy Chapter 1 Financial Statements Of A Company are provided here with simple step-by-step explanations. These solutions for Financial Statements Of A Company are extremely popular among class 12 Commerce students for Accountancy Financial Statements Of A Company Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Analysis Of Financial Statements Ts Grewal 2018 Book of class 12 Commerce Accountancy Chapter 1 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Analysis Of Financial Statements Ts Grewal 2018 Solutions. All Analysis Of Financial Statements Ts Grewal 2018 Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 1.64:

Question 1:

What are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III?  


 

Answer:

The major heads in the Equities and Liabilities part of the Balance sheet are:

i. Shareholder’s Funds,

ii. Share Application Money Pending Allotment,

iii. Non- Current Liabilities and

iv. Current Liabilities

Balance Sheet

as at_______

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

   1. Shareholders’ Funds

 

 

a. Share Capital

 

 

b. Reserves and Surplus

 

 

c. Money Received against Share Warrants

 

 

   2. Share Application Money Pending Allotment

 

 

   3. Non-Current Liabilities

 

 

  a. Long-term Borrowings

 

 

  b. Deferred Tax Liabilities (Net)

 

 

  c. Other Long-term Liabilities

 

 

  d. Long Term Provisions

 

 

4. Current Liabilities

 

 

a. Short-term Borrowings

 

 

b. Trade Payables

 

 

c. Other Current Liabilities

 

 

d. Short-term Provisions

 

 

Total

 

 

 

Page No 1.64:

Question 2:

Under which major head will the following be shown:

(i) Share Capital; and (ii) Money Received Against Share Warrants?

Answer:

Items Major Head
 Share Capital  Shareholder’s Funds
 Money received against share warrants  Shareholder’s Funds



Page No 1.65:

Question 3:

List any five items that are shown under Reserves and Surplus.

Answer:

Items shown under Reserves and Surplus are:

i. Capital Reserve,

ii. Capital Redemption Reserve,

iii. Securities Premium Reserve,

iv. Debenture Redemption Reserve,

v. Revaluation Reserve etc.

Page No 1.65:

Question 4:

Under which sub-head will the following be classified or shown: 
(i) Long-term Borrowings; (ii) Deferred Tax Liabilities (Net); and (iii) Long-term Provision?

Answer:

Items Sub-head
 Long-term Borrowings  Non-Current Liabilities
 Deferred Tax Liabilities (Net)  Non-Current Liabilities
 Long-Term Provisions  Non-Current Liabilities

Page No 1.65:

Question 5:

Name the itmes that are shown under Long-term Borrowings.

Answer:

Items shown under Long-term Borrowings are:

a. Debentures,

b. Bonds,

c. Terms Loans (both from Banks and from others),

d. Public Deposits,

e. Other Loans and Advances.

Page No 1.65:

Question 6:

A company has an opening credit balance in Surplus, i.e., Balance in Statement of Profit and Loss of â‚¹ 1,00,000. During the year, it earned a profit of â‚¹ 75,000. It decided to transfer â‚¹ 15,000 to Debentures Redemption Reserve (DRR) and also proposed to pay dividend of â‚¹ 25,000.

How will be the appropriations shown in the financial statements?

 

Answer:

Extract of Balance Sheet

as at …..

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

 

b. Reserves and Surplus

1

1,50,000

   2. Share Application Money  Pending Allotment

 

 

   3. Non-Current Liabilities

 

 

   4. Current Liabilities

 

 

   a. Short-term Provisions

4

25,000

Total

 

 

 

 

 

 

 

 

NOTES TO ACCOUNTS

                                                                           

Note No.

Particulars

Amount

(Rs)

1

Reserves and Surplus

 

 

(a) Surplus, i.e. Balance in Statement of Profit and Loss

1,00,000

 

 

  Add: Profit for the year

75,000

 

 

  Less: Appropriations

 

 

Transfer to Debenture Redemption Reserve

(15,000)

 

 

Proposed Dividend

(25,000)

1,35,000 

 

(b) Debenture Redemption Reserve

 

 

      Transferred from Surplus i.e. Balance in Statement of Profit and Loss

15,000

 

      Total (a + b) [to be Shown in Balance Sheet against Reserves and
      Surplus]

1,50,000

4

Short-term Provisions

 

 

Proposed Dividend

25,000

Page No 1.65:

Question 7:

State giving reason whether Trade Receivables are classified as Current Assets or Non-current Assets in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases.   

 

 

 

 

Case

Operating Cycle Period (Months) 

Expected Realisation Period (Months)

     
1 10 11
2 10 12
3 10 13
4 14 13
5

15

16

         

Answer:

Case

As Current Assets or Non- Current Assets

Reason

1.

Current Assets

Expected receipt is more than operating cycle but receivable within 12 months.

2.

Current Assets

Expected receipt is more than operating cycle but receivable within 12 months.

3.

Non- Current Assets

Expected receipt is more than operating cycle and receivable after 12 months.

4.

Current Assets

Expected receipt is less than operating cycle.

5.

Non- Current Assets

Expected receipt is more than operating cycle and receivable after 12 months.

Page No 1.65:

Question 8:

State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Calance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:

      

 

 

 

 

Case

Operating Cycle Period (Months) 

Expected Payment Period (Months

1

10

11

2

10

12

3 10 13
4 14 13
5

15

16

         
​

Answer:

Case

As Current Liabilities or Non- Current Liabilities

Reason

1.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

2.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

3.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

4.

Current Liabilities

Expected payment is less than operating cycle

5.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

 



Page No 1.66:

Question 9:

Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III:

(i) Calls-in-Arrears;  (ii)  Share Application Money Pending Allotment; (iii) Unpaid Dividend; and (iv) Dividend not paid on Cumulative Preference Shares?

Answer:

Items Head Disclosure
 Calls-in-Arrears  Shareholder’s Funds  It is shown as a deduction from
 Subscribed Capital shown as
 ‘Subscribed but not fully paid’
 under Shareholder’s Funds
 Share Application Money
 Pending Allotment
 Share Application Money
 Pending Allotment
 It is shown as a separate line item
Unpaid Dividend  Current Liabilities  It is shown as ‘Other Current
 Liability’ under Current Liabilities
 Dividend not paid on Cumulative
 Preference Shares
 Contingent Liabilities and
 Commitments
 It is shown as Contingent
 Liabilities and Commitments in
 Notes to Accounts

Page No 1.66:

Question 10:

Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following items classified or shown:
 

(i)   Bonds;  (ii)   Debentures
(iii) Public Deposits; (iv)   Capital Redemption Reserve;
(v)  Forfeited Shares Account: (vi)    Sundry Creditors; and 
(vii) Interest Accrued but Not Due on Debentures?

Answer:

Items Main head Sub-head
 Bonds  Non-Current Liabilities  Long Term Borrowings
 Debentures  Non-Current Liabilities  Long Term Borrowings
 Deposits  Non-Current Liabilities  Long Term Borrowings
 Capital redemption Reserve  Shareholder’s Funds  Reserves and Surplus
 Share Forfeiture Account  Shareholder’s Funds  Subscribed Capital under Share Capital
 Sundry Creditors  Current Liabilities  Trade Payables
 Interest Accrued but not due on
 Debentures
 Current Liabilities  Other Current Liabilities

Page No 1.66:

Question 11:

State any two items that are included in the following major heads under which liabilities of a company are shown: (i) Reserves and Surplus; (ii) Long-term Borrowings;  (iii)  Short-term Borrowings; (iv) Other Current Liabilities.

Answer:

Major head Items
 Reserves and Surplus  Capital Reserve, Revaluation Reserve
 Long-term Borrowings  Debentures, Term Loans from Bank and Others
 Short-term Borrowings  Cash credit from bank, Loans repayable on demand
 Other Current Liabilities  Income received in advance, Unpaid Dividends

Page No 1.66:

Question 12:

Classify the following items under major head and sub-head (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013: (i) Capital Work-in-Progress: (ii) Provision for Warranties; (iii) Income received in Advance; and (iv) Capital Advances

Answer:

Item Major Head Sub-Head
Capital Work-in-Progress Non-Current Assets Fixed Assets- Capital Work-in-Progress
Provision for Warranties Non-Current Liabilities Long Term Provisions
Income Received in Advance Current Liabilities Other Current Liabilities
Capital Advances Non-Current Assets Long Term Loans & Advances

Page No 1.66:

Question 13:

Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown:

(i) Intangible Assets; (ii) Intangible Assets under Development; (iii) Investments (more than 12 months); (iv) Deferred Tax Assets (Net); (v) Stores and Spares; and (vi) Loose Tools?

Answer:

Items Main head Sub-head
 Intangible Assets  Non-Current Assets  Fixed Assets
 Intangible Assets under development  Non-Current Assets  Fixed Assets
 Investments (more than 12 months)  Non-Current Assets  Non-Current Investments
 Deferred Tax Assets (Net)  Non-Current Assets  Deferred Tax Assets (Net)
 Stores and Spares  Current Assets  Inventories
 Loose Tools  Current Assets  Inventories



Page No 1.67:

Question 14:

Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a copany: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash?

Answer:

Items Main head Sub-head
 Loose Tools  Current Assets  Inventories
 Bills Receivable  Current Assets  Trade Receivables
 Sundry Debtors  Current Assets  Trade Receivables
 Advance Recoverable in Cash  Current Assets  Short-term Loans and Advances

Page No 1.67:

Question 15:

Under which heads the following items on the Assets part of the Balance Sheet of a company will be presented?
  â€‹

(i) Sundry Debtors; (ii) Patents and Trademarks;  (iii) Shares in Quoted Companies:
(iv) Advances recoverable in cash;  (v) Prepaid Insurance; and  (vi) Work-in-Progress (Machinery)?

Answer:

Items Main head Sub-head
 Sundry Debtors  Current Assets  Trade Receivables
 Patents and Trade Marks  Non-Current Assets  Fixed Assets (Intangible Assets)
 Shares in Quoted Companies  Non-Current Assets  Non-Current Investments
 Advance Recoverable in Cash  Current Assets  Short-term Loans and Advances
 Prepaid Insurance  Current Assets  Other Current Assets
 Work-in-Progress (Machinery)  Non-Current Assets  Fixed Assets (Capital Work-in-progress)

Page No 1.67:

Question 16:

Under which of the major heads will the following items be shown while preparing Balance Sheet of a company, as per Schedule III of the Companies Act, 2013:

(i) Unamortised Loss on Issue of Debentures (To be written off after 12 months from the date of Balance Sheet);
(ii) 10% Debentures; (iii) Stock-in-Trade; (iv) Cash at Bank;
(v) Bills Receivable; (vi) Goodwill; (vii) Loose Tools;
(viii) Truck; (ix) Provision for Tax; and (x) Sundry Creditors?

Answer:

ITEMS HEAD SUB-HEAD
 Unamortised Loss on Issue of
 Debentures (To be written off
 after 12 months from date of
 Balance sheet)
 Non-Current Assets  Other Non-Current Assets
 10% Debentures  Non Current Liabilities  Long-term Borrowings
 Stock-in-Trade  Current Assets  Inventories
 Cash at Bank  Current Assets  Cash and Cash equivalents
 Bills Receivable  Current Assets  Trade Receivables
 Goodwill  Non-Current Assets  Fixed Assets (Intangible Assets)
 Loose Tools  Current Assets  Inventories
 Truck  Non-Current Assets  Fixed Assets (Tangible Assets)
 Provision for Tax  Current Liabilities  Short term Provisions
 Sundry Creditors  Current Liabilities  Trade Payables

Page No 1.67:

Question 17:

Under which heads will the following items be shown in the Balance Sheet of a Company
 

(i) Bank Balance; (ii) Investments (Long-term); (iii) Outstanding Salary;
(iv) Authorised Capital;   (v) Bills Payable;  
(vi) Unclaimed Dividents; (vii) Shares Option Outstanding Account;  
(viii) General Reserve; and (ix)  Subsidy Reserve?

Answer:

S. No.

Items

Main Head

Sub-Head

1

Bank Balance

Current Assets

Cash and Cash Equivalents

2

Investments (Long-term)

Non-Current Assets

Non-Current Investments

3

Outstanding Salary

Current Liabilities

Other Current Liabilities

4

Authorised Capital

Shareholder's Fund

Share Capital

5

Bills Payable

Current Liabilities

Trade Payables

6

Unclaimed Dividends

Current Liabilities

Other Current Liabilities

7

Share Option Outstanding Account

Shareholders’ Funds

Reserves and Surplus

8

General Reserve

Shareholders’ Funds

Reserves and Surplus

9

Subsidy Reserve

Shareholders’ Funds

Reserves and Surplus

Page No 1.67:

Question 18:

S. No.

Items

Main Head

Sub-Head

1

Bank Balance

Current Assets

Cash and Cash Equivalents

2

Investments (Long-term)

Non-Current Assets

Non-Current Investments

3

Outstanding Salary

Current Liabilities

Other Current Liabilities

4

Authorised Capital

Shareholder's Fund

Share Capital

5

Bills Payable

Current Liabilities

Trade Payables

6

Unclaimed Dividends

Current Liabilities

Other Current Liabilities

7

Share Option Outstanding Account

Shareholders’ Funds

Reserves and Surplus

8

General Reserve

Shareholders’ Funds

Reserves and Surplus

9

Subsidy Reserve

Shareholders’ Funds

Reserves and Surplus

Answer:

S. No.

Items

Main Head

Sub-Head

1

Calls-in-Arrears

Shareholder's Funds

Share Capital (i.e. as a deduction from subscribed share capital)

2

Commission Received in Advance

Current Liabilities

Other Current Liabilities

3

Debentures

Non-Current Liabilities

Long-term Borrowings

4

Stores and Spare Parts

Current Assets

Inventories

5

Land and Building

Non-Current Assets

Fixed Assets (Tangible Assets)

6

Forfeited Shares Account

Shareholder's Funds

Share Capital (i.e. as an addition to subscribed share capital)

7

Government Securities

Non-Current Assets

Non-Current Investments

8

Uncalled Liability on partly paid shares

Commitments in Notes to Accounts

Commitments in Notes to Accounts



Page No 1.68:

Question 19:

S. No.

Items

Main Head

Sub-Head

1

Calls-in-Arrears

Shareholder's Funds

Share Capital (i.e. as a deduction from subscribed share capital)

2

Commission Received in Advance

Current Liabilities

Other Current Liabilities

3

Debentures

Non-Current Liabilities

Long-term Borrowings

4

Stores and Spare Parts

Current Assets

Inventories

5

Land and Building

Non-Current Assets

Fixed Assets (Tangible Assets)

6

Forfeited Shares Account

Shareholder's Funds

Share Capital (i.e. as an addition to subscribed share capital)

7

Government Securities

Non-Current Assets

Non-Current Investments

8

Uncalled Liability on partly paid shares

Commitments in Notes to Accounts

Commitments in Notes to Accounts

Answer:

S. No.

Items

Main Head

Sub-Head

1

Public Deposits

Non-Current Liabilities

Long-term Borrowings

2

Office Furniture

Non-Current Assets

Fixed Assets (Tangible Assets)

3

Prepaid Rent

Current Assets

Other Current Assets

4

Outstanding Salaries

Current Liabilities

Other Current Liabilities

5

Computer Software

Non-Current Assets

Fixed Assets (Intangible Assets)

6

Interest Accrued on Investment

Current Assets

Other Current Assets

7

Bills Discounted but not Matured

It is shown as a Contingent Liability in the Notes to Accounts

It is shown as a Contingent Liability in the Notes to Accounts

8

Live Stock

Non-Current Assets

Fixed Assets (Tangible Assets)

Page No 1.68:

Question 20:

Name the major heads under which the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:

(i) Loose Tool. (ii) Unpaid Dividend.
(iii) Copyrights and Patents. (iv) Land and Building.
 

Answer:

Items

Main Head

Loose Tools

Current Assets

Unpaid Dividend

Current Liabilities

Copyrights & Patents

Non- Current Assets

Land & Building

Non- Current Assets

Page No 1.68:

Question 21:

Identify the major heads under which the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013:

(i) Provision for Tax. (ii) Loan payable on demand.
(iii) Computer and related equipment. (iv) Goods acquired for trading

Answer:

Items

Main Head

Provision for Tax

Current Liabilities

Loan payable on demand

Current Liabilities

Computer & related equipment

Non- Current Assets

Goods acquired for trading

Current Assets

 

Page No 1.68:

Question 22:

How are the following items shown while preparing Balance Sheet of a company:
(i) Surplus, i.e., Balance in Statement of Profit and Loss (Dr.);
(ii) Interest accrued and due on Debentures;
(iii) Computer Software under development;
(iv) Interest accrued on Investment?

Answer:

ITEMS MAJOR HEAD SUB-HEAD
 Surplus, i.e. Balance in Statement
 of Profit and Loss (Dr.)
 Shareholder’s Funds  Reserves and Surplus (as
 negative figure)
 Interest accrued and due on
 debentures
 Current Liabilities  Other Current Liabilities
 Computer Software under
 development
 Non-current Assets  Fixed Assets (Intangible Assets
 under development)
 Interest accrued on Investments  Current Assets  Other Current Assets

Page No 1.68:

Question 23:

ITEMS MAJOR HEAD SUB-HEAD
 Surplus, i.e. Balance in Statement
 of Profit and Loss (Dr.)
 Shareholder’s Funds  Reserves and Surplus (as
 negative figure)
 Interest accrued and due on
 debentures
 Current Liabilities  Other Current Liabilities
 Computer Software under
 development
 Non-current Assets  Fixed Assets (Intangible Assets
 under development)
 Interest accrued on Investments  Current Assets  Other Current Assets

Answer:

Extract of Balance Sheet

as at March 31, 2016

Particulars

Note No.

Amount

(Rs)

2. Non-Current Liabilities

 

 

   Long-term Borrowings

 

 

   11% Loan from SBI

20,00,000

 

 

   7,500, 10% Debentures of Rs 100 each

7,50,000

 

27,50,000

3. Current Liabilities

 

 

   Other Current Liabilities

 

 

   Current Maturity of Long-term Debts (2,500
   Debentures of Rs 100 each maturing within 12 months)

2,50,000

 

 

   Interest accrued and Due on Debentures

1,00,000

 

 

  Interest accrued and Due on Loan

2,20,000

 

5,70,000

 

 

 

 

Total

 

33,20,000

 

 

 



Page No 1.69:

Question 24:

Prepare Balance Sheet of the Company as per Schedule III of the Companies Act, 2013: ₹
10% Debentures of â‚¹ 100 each 1,90,000
Stock-in-Trade (inventories) 40,000
Goodwill  20,000
Provision for Tax 60,000
Totalling of Balance Sheet is not required
​​

Answer:

Balance Sheet

as at …

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

2. Non-Current Liabilities

 

 

Long-term Borrowings

1

1,90,000

3. Current Liabilities

 

 

Short-term Provisions

2

6,000

Total

 

 

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Intangible (Fixed Assets)

3

20,000

2. Current Assets

 

 

a. Inventories

4

40,000

Total

 

 

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Long-term Borrowings

 

 

10% Debentures

1,90,000

 

 

 

2

Short-term Provisions

 

 

Provision for Tax

6,000

 

 

 

3

Intangible (Fixed Assets)

 

 

Goodwill

20,000

 

 

 

4

Inventories

 

 

Stock-in-Trade

40,000

 

 

 

Page No 1.69:

Question 25:

Balance Sheet

as at …

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

2. Non-Current Liabilities

 

 

Long-term Borrowings

1

1,90,000

3. Current Liabilities

 

 

Short-term Provisions

2

6,000

Total

 

 

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Intangible (Fixed Assets)

3

20,000

2. Current Assets

 

 

a. Inventories

4

40,000

Total

 

 

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Long-term Borrowings

 

 

10% Debentures

1,90,000

 

 

 

2

Short-term Provisions

 

 

Provision for Tax

6,000

 

 

 

3

Intangible (Fixed Assets)

 

 

Goodwill

20,000

 

 

 

4

Inventories

 

 

Stock-in-Trade

40,000

 

 

 

Answer:

Balance Sheet

as at March 31, 2016

Particulars

Note No.

Amount

(Rs)

I Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

5,000

b. Reserves and Surplus

2

4,200

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

3,000

3. Current Liabilities

 

 

Other Current Liabilities

 

2,500

Total

 

14,700

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Fixed Assets (Tangible Assets)

4

8,300

2. Current Assets

 

 

Other Current Assets

 

6,400

Total

 

14,700

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Share Capital

5,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve

3,000

 

Balance in Statement of Profit and Loss (Credit)

1,200

 

 

4,200

 

 

 

3

Long-term Borrowings

 

 

8% Debentures

3,000

 

 

 

4

Fixed Assets

 

 

Tangible Assets (Cost)

9,000

 

 

Depreciation

(700)

8,300

 

 

 

Page No 1.69:

Question 26:

Balance Sheet

as at March 31, 2016

Particulars

Note No.

Amount

(Rs)

I Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

5,000

b. Reserves and Surplus

2

4,200

2. Non-Current Liabilities

 

 

Long-term Borrowings

3

3,000

3. Current Liabilities

 

 

Other Current Liabilities

 

2,500

Total

 

14,700

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

Fixed Assets (Tangible Assets)

4

8,300

2. Current Assets

 

 

Other Current Assets

 

6,400

Total

 

14,700

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Share Capital

5,000

 

 

 

2

Reserves and Surplus

 

 

General Reserve

3,000

 

Balance in Statement of Profit and Loss (Credit)

1,200

 

 

4,200

 

 

 

3

Long-term Borrowings

 

 

8% Debentures

3,000

 

 

 

4

Fixed Assets

 

 

Tangible Assets (Cost)

9,000

 

 

Depreciation

(700)

8,300

 

 

 

Answer:

Balance Sheet

as at March 31, 2016

Particulars

Note No.

Amount

(Rs in ‘000)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

800

b. Reserves and Surplus

 

180

2. Non-Current Liabilities

 

 

Long-term Borrowings

 

1,000

3. Current Liabilities

 

 

Trade Payables

 

60

Total

 

2,040

II. Assets

 

 

1. Non-Current Assets

 

 

Fixed Assets (Tangible Assets)

 

1,600

2. Current Assets

 

 

Inventories

 

40

Trade Receivables

 

160

Cash and Cash Equivalents

 

240

Total

 

2,040

 

 

 

Page No 1.69:

Question 27:

Balance Sheet

as at March 31, 2016

Particulars

Note No.

Amount

(Rs in ‘000)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

 

800

b. Reserves and Surplus

 

180

2. Non-Current Liabilities

 

 

Long-term Borrowings

 

1,000

3. Current Liabilities

 

 

Trade Payables

 

60

Total

 

2,040

II. Assets

 

 

1. Non-Current Assets

 

 

Fixed Assets (Tangible Assets)

 

1,600

2. Current Assets

 

 

Inventories

 

40

Trade Receivables

 

160

Cash and Cash Equivalents

 

240

Total

 

2,040

 

 

 

Answer:

Balance Sheet

as at March 31, 2016

Particulars

Note No.

Amount

(Rs)

I. Equity and Liabilities

 

 

1. Shareholders’ Funds

 

 

a. Share Capital

1

30,00,000

b. Reserves and Surplus

2

4,00,000

2. Non-Current Liabilities

 

 

a. Long-term Borrowings

3

6,00,000

3. Current Liabilities

 

 

a. Other Current Liabilities

4

8,00,000

b. Short-term Provisions

5

2,00,000

Total

 

50,00,000

 

 

 

II Assets

 

 

1. Non-Current Assets

 

 

a. Fixed Assets

 

 

i) Tangible Assets

6

30,00,000

b. Non-Current Investments

7

4,00,000

2. Current Assets

 

 

a. Inventories

8

6,00,000

b. Trade Receivables

9

8,00,000

c. Cash and Cash Equivalents

10

1,50,000

d. Short-term Loans and Advances

11

50,000

Total

 

50,00,000

 

 

 

 

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

1

Share Capital

 

 

Equity Share Capital

20,00,000

 

12% Preference Share Capital

10,00,000

 

 

30,00,000

2

Reserves and Surplus

 

 

Workmen Compensation Reserve

1,00,000

 

Balance in Statement of Profit and Loss (Credit)

3,00,000

 

 

4,00,000

 

 

 

3

Long-term Borrowings

 

 

12% Debentures

6,00,000

 

 

 

4

Other Current Liabilities

 

 

Current Liabilities

8,00,000

 

 

 

5

Short-term Provisions

 

 

Provision for Taxation

2,00,000

 

 

 

6

Tangible Assets

 

 

Fixed Assets (Cost)

46,60,000

 

 

Depreciation

(16,60,000)

30,00,000

 

 

 

7

Non-Current Investments

 

 

Investments

4,00,000

 

 

 

8

Inventories

 

 

Stock

6,00,000

 

 

 

9

Trade Receivables

 

 

Sundry Debtors

8,00,000

 

 

 

10

Cash and Cash Equivalents

 

 

Cash

1,50,000

 

 

 

11

Short-term Loans and Advances

 

 

Loans and Advances

50,000

 

 

 

Page No 1.69:

Question 28:

Under which head following revenue items of a non-financial company will be classified or shown:
(i) Sales; (ii) Revenue from Services Rendered; (iii) Sale of Scrap; (iv) Interest Earned on Loans; and (v) Gain (profit) on Sale of Investments?

Answer:

ITEMS HEAD
 Sales  Revenue from Operations
 Revenue from services rendered  Revenue from Operations
 Sale of scrap  Revenue from Operations
 Interest earned or Loans  Other Income
 Profit on Sale of Investment  Other Income



Page No 1.70:

Question 29:

Under which head following revenue items of a financial company will be classified or shown:
(i) Gain (Profit) on Sale of Building; (ii) Revenue from Project Consultancy Rendered; (iii) Sale of Scrap; (iv) Interest earned on Loans; and (v) Gain (Profit) on sale of Investments?

Answer:

ITEMS HEAD
 Profit on Sale of Building  Other Income
 Revenue from Project Consultancy Rendered  Other Income
 Sale of scrap  Other Income
 Interest earned or Loans  Revenue from Operations
 Profit on Sale of Investment  Revenue from Operations

Page No 1.70:

Question 30:

ITEMS HEAD
 Profit on Sale of Building  Other Income
 Revenue from Project Consultancy Rendered  Other Income
 Sale of scrap  Other Income
 Interest earned or Loans  Revenue from Operations
 Profit on Sale of Investment  Revenue from Operations

Answer:

ITEMS HEAD
 Profit on Sale of Fixed Assets  Other Income
 Fee Received for Arranging Loans  Revenue from Operations
 Interest on Loans Given  Revenue from Operations
 Profit on Sale of Investments  Revenue from Operations
 Sale of a Miscellaneous item  Other Income

Page No 1.70:

Question 31:

Under which head following revenue items of non-financial company will be classified or shown:
(i) Gain (Profit) on Sale of Fixed Asset; (ii) Fee Received for Arranging Loans; (iii) Interest on Loans Given; (iv) Gain (Profit) on Sale of Investments and (v) Sale of Miscellaneous Items?

Answer:

ITEMS HEAD
 Profit on Sale of Fixed Assets  Other Income
 Fee Received for Arranging Loans  Other Income
 Interest on Loans Given  Other Income
 Profit on Sale of Investments  Other Income
 Sale of a Miscellaneous item  Other Income

Page No 1.70:

Question 32:

Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials â‚¹5,00,000; Purchase of Materials â‚¹25,00,000; and Closing Inventory of Materials â€‹â‚¹4,00,000.

Answer:

Page No 1.70:

Question 33:

Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials â‚¹2,50,000; Finished Goods â‚¹1,00,000; Closing Inventory of Materials â‚¹2,25,000; Finished Goods â‚¹75,000; Raw Material purchased during the year â‚¹15,00,000.

Answer:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods.

Page No 1.70:

Question 34:

Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials â‚¹3,50,000; Finished Goods â‚¹75,000; Stock-in-Trade â‚¹2,00,000; Closing Inventory of: Materials â‚¹3,25,000; Finished Goods â‚¹85,000; Stock-in-Trade â‚¹1,50,000; Purchases during the year: Raw Material â‚¹17,50,000; Stock-in-Trade â‚¹9,00,000.

Answer:


Note: Opening Inventory of Finished Goods and Closing Inventory of Finished Goods will not be considered as these are shown under Change in Inventory of Finished Goods. Also, Opening, Closing and Purchases of Stock-in-Trade are not considered as they are not part of cost of materials consumed.

Page No 1.70:

Question 35:

From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods â‚¹2,00,000 and â‚¹1,75,000 respectively.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Finished Goods

 

 

Opening Inventory

2,00,000

 

 

  Less: Closing Inventory

1,75,000

25,000

 

 

25,000

 

 

 


 Rs 25,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Finished Goods.

Page No 1.70:

Question 36:

From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods â‚¹2,50,000 and â‚¹2,00,000 respectively.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Finished Goods

 

 

Opening Inventory

2,50,000

 

 

  Less: Closing Inventory

2,00,000

50,000

 

 

50,000

 

 

 


Rs 50,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Finished Goods.

Page No 1.70:

Question 37:

From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress â‚¹1,00,000 and â‚¹1,15,000 respectively.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Work-in-Progress

 

 

Opening Inventory

1,00,000

 

 

  Less: Closing Inventory

1,15,000

(15,000)

 

 

(15,000)

 

 

 


(Rs 15,000) will be shown in the Statement of Profit and Loss against Change in Inventories of Work-in-Progress.

Page No 1.70:

Question 38:

From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress â‚¹1,50,000 and â‚¹1,45,000 respectively.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Work-in-Progress

 

 

Opening Inventory

1,50,000

 

 

  Less: Closing Inventory

1,45,000

5,000

 

 

5,000

 

 

 


Rs 5,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Work-in-Progress.

Page No 1.70:

Question 39:

From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade â‚¹5,00,000 and â‚¹4,50,000 respectively.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Stock-in-Trade

 

 

Opening Inventory

5,00,000

 

 

  Less: Closing Inventory

4,50,000

50,000

 

 

50,000

 

 

 


Rs 50,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.

Page No 1.70:

Question 40:

From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade â‚¹5,00,000 and â‚¹4,00,000 respectively.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Stock-in-Trade

 

 

Opening Inventory

5,00,000

 

 

  Less: Closing Inventory

4,00,000

1,00,000

 

 

1,00,000

 

 

 


Rs 1,00,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.



Page No 1.71:

Question 41:

From the following information of Hospitality Ltd. for the year ended 31st March, 2018, calculate amount that will be shown in the Note to Accounts on Changes in inventiories of Finished Goods, WIP  and stock-in-Trade:

        

 

 

 

 

Particluars

Opening Inventory (₹)

Closing inventory(₹)

Finished Goods

5,00,000

5,50,000

Work-in-Progress

4,50,000 

4,25,000

Stock-in-Trade 6,50,000 6,00,000

 

 

 

         

 

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  

(a)

Finished Goods

 
 

Opening Inventory

5,00,000

 
 

  Less: Closing Inventory

5,50,000

(50,000)

   

(50,000)

(b)

Work-in-Progress

 
 

Opening Inventory

4,50,000

 
 

  Less: Closing Inventory

4,25,000

25,000

   

25,000

(c)

Stock-in-Trade

 
 

Opening Inventory

6,50,000

 
 

  Less: Closing Inventory

6,00,000

50,000

   

50,000

  Net Change (a+b+c) 25,000

Rs 25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Page No 1.71:

Question 42:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  

(a)

Finished Goods

 
 

Opening Inventory

5,00,000

 
 

  Less: Closing Inventory

5,50,000

(50,000)

   

(50,000)

(b)

Work-in-Progress

 
 

Opening Inventory

4,50,000

 
 

  Less: Closing Inventory

4,25,000

25,000

   

25,000

(c)

Stock-in-Trade

 
 

Opening Inventory

6,50,000

 
 

  Less: Closing Inventory

6,00,000

50,000

   

50,000

  Net Change (a+b+c) 25,000

Rs 25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Change in Inventories of Finished Goods, WIP and Stock-in-Trade  

(a)

Finished Goods

 
 

Opening Inventory

15,00,000

 
 

  Less: Closing Inventory

12,50,000

2,50,000

   

2,50,000

(b)

Work-in-Progress

 
 

Opening Inventory

10,50,000

 
 

  Less: Closing Inventory

9,25,000

1,25,000

   

1,25,000

(c)

Stock-in-Trade

 
 

Opening Inventory

9,50,000

 
 

  Less: Closing Inventory

8,00,000

1,50,000

   

1,50,000

  Net Change (a + b + c)  5,25,000

Rs 5,25,000 will be shown in the Statement of Profit and Loss against the Change in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade.

Page No 1.71:

Question 43:

From the following information compute the amount to be shown in Note to Accounts on Employees Benefit Expenses: Wages â‚¹ 5,40,000; Salaries â‚¹ 7,20,000; bonus â‚¹ 1,05,000; Staff Welfare Expenses â‚¹ 60,000 and Business Promotion Expenses â‚¹ 50,000.

Answer:

 NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(₹)

  Employees Benefit Expenses  
 

 

 
 

Wages

5,40,000

 
  Salaries 7,20,000  
  Bonus 1,05,000  
 

Staff Welfare Expenses

60,000

14,25,000
       
  Amount to be shown in the Statement of Profit and Loss 14,25,000
     

*Amount spent on promotion of business is not included in Employees Benefit Expenses.

Page No 1.71:

Question 44:

From the following information, prepare Note to Accounts on Employees Benefit Expenses:
Wages â‚¹ 2,70,000; Salaries â‚¹ 3,60,000; Staff Welfare Expenses 60,000; Printing and Stationery Expenses â‚¹ 20,000 and Business Promotion Expenses â‚¹ 50,000.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Employees Benefit Expenses  
 

 

 
 

Wages

2,70,000

 
  Salaries 3,60,000  
 

Staff Welfare Expenses

60,000

6,90,000
       
  Amount to be shown in the Statement of Profit and Loss 6,90,000
     

*Amount spent on promotion of business and printing & Stationary expenses are not included in Employees Benefit Expenses.

Page No 1.71:

Question 45:

Out of the Following, identify the items that are shown in the Note to Accounts on Finance Costs:
(i) Interest paid on Borrowing from prince Finance Ltd.;
(ii) Interest paid on Term Loan to Bank;
(iii) Interest paid on Public Deposits;
(iv) Loss on Issue of Debentures Written off; and
(v) Bank Charges.

Answer:

Items that will be shown in the Notes to Accounts on Finance Costs are:

i. Interest paid on Borrowings from Prince Finance Ltd.;

ii. Interest paid on Term Loan to Bank;
iii. Interest paid on Public Deposits;
iv. Loss on Issue of Debentures written off.

The Bank charges are not shown under Finance Costs but under ‘Other Expenses’, as they are expenses for the services availed from the bank.

Page No 1.71:

Question 46:

From the following information, prepare Note to Accounts on Finance Costs: Interest paid to Bank ₹ 75,000; Interest on Debentures ₹ 58,000; Loss on issue of Debentures written off ₹ 27,500; and Commitment Charges ₹ 15,000.

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Finance Costs  
 

Interest paid to bank

75,000

 
  Interest on Debentures 58,000  
  Loss on Issue of Debentures written off 27,500  
 

Commitment charges

15,000

1,75,500
       
    1,75,500
     

Page No 1.71:

Question 47:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Finance Costs  
 

Interest paid to bank

75,000

 
  Interest on Debentures 58,000  
  Loss on Issue of Debentures written off 27,500  
 

Commitment charges

15,000

1,75,500
       
    1,75,500
     

Answer:

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

  Depreciation and Amortisation Expenses  

 

Depreciation

 
 

Building

15,500

 
  Plant and Machinery 25,000  
 

Computers

60,000

1,00,500

 

Amortisation

 
 

Goodwill written off

7,500

 
 

Patents written off

12,500

20,000

   

1,20,500

  Amount to be shown in the Statement of Profit and Loss 1,20,500



Page No 1.72:

Question 48:

Identify which of the following items will be shown in the Note to Accounts on Other Expenses? (i) Salaries; (ii) Postage Expenses; (iii) Telephone and Internet Expenses; (iv) Rent for warehouse; (v) Carriage Inwards; (vi) Depreciation on computers; (vii) Computer Software amortised; (viii) Computer Hiring Charges; (ix) Audit fee; (x) Bonus.

Answer:

Items that will be shown in the Notes to Accounts on ‘other expenses’ are
(ii) Postage Expenses;
(iii)Telephone and Internet Expenses;
(iv) Rent for warehouse;
(v) Carriage Inwards;
(viii)
Computer Hiring charges;
(ix) Audit fee

Page No 1.72:

Question 49:

Under which line item (major head) of the Statement of Profit and Loss of non-financial company will the following be shown:

(i) Sale of Goods; (ii) Revenue from Services Rendered; (iii) Interest Earned; (iv) Gain (Profit) on Sale of Assets; (v) Purchases of Stock-in-Trade; (vi) Salaries and Wages; (vii) Interest paid to Bank; (viii) Carriage Outward?

Answer:

ITEMS MAJOR HEAD
Sale of Goods Revenue from Operations
Revenue from Services rendered Revenue from Operations
Interest earned Other Income
Profit on Sale of Assets Other Income
Purchase of Stock-in-Trade Purchase of Stock-in-Trade
Salaries and Wages Employees Benefit Expenses
Interest paid to Bank Finance Costs
Carriage Outward Other Expenses

Page No 1.72:

Question 50:

Under which line item (major head) of the Statement of Profit and Loss of a financial company will the following be shown:

(i) Interest on Loans Given: (ii) Gain (Profit) on Sale of Securities; (iii) Loss on Sale of Fixed Assets; (iv) Interest paid on Deposits; (v) Depreciation on Computers; (vi) Goodwill Written off; (vii) Commission paid for Deposit Mobilisation; and (viii) Repairs Expenses?

Answer:

ITEMS MAJOR HEAD
Interest on Loans Given Revenue from Operations
Profit on Sale of Securities Revenue from Operations
Loss on Sale of Fixed Assets Other Expenses
Interest paid on Deposits Finance Costs
Depreciation on Computers Depreciation and Amortisation Expenses
Goodwill Written off Depreciation and Amortisation Expenses
Commission paid for Deposit Mobilisation Finance Costs
Repairs Expenses Other Expenses

Page No 1.72:

Question 51:

Under which line item of the financial statements following items will be shown:
(i) Sales; (ii) Loss on Sale of Vehicle; (iii) Debentures; (iv) Unamortised Loss on Issue of Debentures (to be written off within 12 months of the date of Balance Sheet); (v) Encashable Leave Payable at the Time of Retirement; (vi) Tax Reserve; (vii) Carriage on Purchases of Stock-in-Trade; and (viii) Telephone and Internet Expenses?

Answer:

Items Line Items of Financial Statements
 Sales  Revenue from Operations
 Loss on Sale of Vehicle  Other Expenses
 Debentures  Long Term Borrowings
 Unamortised Loss on Issue of Debentures (to be
 written off within 12 months of the date of
 Balance Sheet)
 Other Non-Current Assets
 Encashable Leave Payable at the time of
 Retirement
 Long Term Provisions
 Tax Reserve  Reserves and Surplus
 Carriage on Purchase of Stock-in Trade  Other Expenses
 Telephone and Internet expenses  Other Expenses

Page No 1.72:

Question 52:

Items Line Items of Financial Statements
 Sales  Revenue from Operations
 Loss on Sale of Vehicle  Other Expenses
 Debentures  Long Term Borrowings
 Unamortised Loss on Issue of Debentures (to be
 written off within 12 months of the date of
 Balance Sheet)
 Other Non-Current Assets
 Encashable Leave Payable at the time of
 Retirement
 Long Term Provisions
 Tax Reserve  Reserves and Surplus
 Carriage on Purchase of Stock-in Trade  Other Expenses
 Telephone and Internet expenses  Other Expenses

Answer:

Values that a company must observe while preparing its financial statements.
(a) The financial statements must be drawn following the accounting concepts, principles, procedures
(b) The financial statements must be drawn following the ethical and legal framework
 

Item Major Head Sub-Head
Capital Reserve Shareholders’ Funds Reserves & Surplus
Calls-in-Advance Current Liabilities Other Current Liabilities
Loose Tools Current Assets Inventories
Bank Overdraft Current Liabilities Short Term Borrowings



View NCERT Solutions for all chapters of Class 15