Financial Statements of a Company
Class 12 · Accountancy · 19 Questions
Classify the following items in the balance sheet of a company under Major heads and Sub-heads
State the meaning of financial statements?
What are limitations of financial statements?
List any three objectives of financial statements?
State the importance of financial statements to: (i) shareholders (ii) creditors (iii) government (iv) investors
Explain the nature of the financial statements.
Explain in detail about the significance of the financial statements.
Explain the limitations of financial statements.
Prepare the format of statement of profit and loss and explain its items upto the as certainment of profit before tax.
Prepare the format of balance sheet and explain the various elements of balance sheet.
Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
'Financial statements reflect a combination of recorded facts, accounting conventions and personal judgements'. Discuss.
Explain the process of preparing income statement and balance sheet.
Show the following items in the balance sheet as per the provisions of the companies Act, 2013 in Schedule III: Preliminary Expenses Rs. 2,40,000; Goodwill Rs. 30,000; Discount on issue of shares Rs. 20,000; Loose tools Rs. 12,000; 10% Debentures Rs. 2,00,000; Motor Vehicles Rs. 4,75,000; Stock in trade Rs. 1,40,000; Provision for tax Rs. 16,000; Cash at bank Rs. 1,35,000; Bills receivable Rs. 1,20,000.
On April 1, 2017, Jumbo Ltd., issued 10,000; 12% debentures of Rs. 100 each a discount of 20%, redeemable after 5 years. The company decided to write-off discount on issue of such debentures on March 31, 2018. Show the items in the balance sheet of the company immediately after the issue of these debentures.
From the following information prepare the balance sheet of Gitanjali Ltd. Inventories Rs. 14,00,000; Equity Share Capital Rs. 20,00,000; Plant and Machinery Rs. 10,00,000; Preference Share Capital Rs. 12,00,000; Debenture Redemption Reserve Rs. 6,00,000; Outstanding Expenses Rs. 3,00,000; Proposed Dividend Rs. 5,00,000; Land and Building Rs. 20,00,000; Current Investments Rs. 8,00,000; Cash Equivalent Rs. 10,00,000; Short term loan from Zaveri Ltd. (A Subsidiary Company of Twilight Ltd.) Rs. 4,00,000; Public Deposits Rs. 12,00,000.
From the following information prepare the balance sheet of Jam Ltd. Inventories Rs. 7,00,000; Equity Share Capital Rs. 16,00,000; Plant and Machinery Rs. 8,00,000; 8% Preference Share Capital Rs. 6,00,000; General Reserves Rs. 6,00,000; Bills payable Rs. 1,50,000; Provision for taxation Rs. 2,50,000; Land and Building Rs. 16,00,000; Non-current Investments Rs. 10,00,000; Cash at Bank Rs. 5,00,000; Creditors Rs. 2,00,000; 12% Debentures Rs. 12,00,000.
Brinda Ltd., has furnished the following information: (a) 25,000, 10% debentures of Rs.100 each; (b) Bank Loan of Rs.10,00,000 repayable after 5 years; (c) Interest on debentures is yet to be paid. Show the above items in the balance sheet of the company as at March 31, 2017.
Prepare a balance sheet of Black Swan Ltd., as at March 31, 2017 from the following information: General Reserve Rs. 3,000; 10% Debentures Rs. 3,000; Balance in Statement of Profit and Loss Rs. 1,200; Depreciation on fixed assets Rs. 700; Gross Block Rs. 9,000; Current Liabilities Rs. 2,500; Preliminary Expenses Rs. 300; 6% Preference Share Capital Rs. 5,000; Cash & Cash Equivalents Rs. 6,100.