Read DK Goel Class 12 Accountancy Solutions for Chapter 1 Financial Statements of Companies below. These DK Goel Accountancy Class 12 solutions have been prepared based on the latest book for DK Goel Class 12 for the current academic year by expert accounts teachers at studiestoday.com. These DK Goel Class 12 Solutions help commerce students in class 12 understand accountancy and build a strong base in accounts. Students in Class 12 who study accountancy and use the DK Goel Accountancy book to understand concepts of Chapter 1 Financial Statements of Companies should understand the concepts and solve practice questions and exercises given at the end of the chapter. We have provided solutions for all questions and have also provided short notes for each problem. This will help Class 12 DK Goel Accountancy students to understand the questions properly. Refer to the solutions provided below prepared by CBSE NCERT teachers
Chapter 1 Financial Statements of Companies DK Goel Class 12 Solutions
Class 12 Accountancy students should read the following DK Goel Solutions for Class 12 Chapter 1 Financial Statements of Companies in Standard 12. All solutions provided below can be downloaded in Pdf and are available for free. This DK Goel Book for Grade 12 Accountancy will be very useful for exams and help you to score good marks in Class 12 accountancy examinations. On our website www.studiestoday.com, we have provided solutions for all chapters given in the DK Goel Accountancy Book for Class 12.
DK Goel Solutions Chapter 1 Financial Statements of Companies Class 12 Accountancy
Short Answer Questions
Question 1:
Solution .1
Question.2
Solution .2
Question. 3
Solution .3
Question.4
Solution .4
Question 5.
Solution .5
Question 6.
Solution 6.
Question 7.
Solution 7.
Question 8.
Solution 8.
i. Current
ii. Current
iii. NonCurrent
iv. NonCurrent
v. Current
Question 9.
Solution 9 .
Question 10.
Solution 10. Both will be classified under ‘Shareholder’s Funds’.
Question 11 A (new).
Solution 11 A (new). (i) Outstanding Salary shows in Current Liabilities under Other Current Liabilities.
(ii) Bank Balance shows in Current Assets under Cash and Cash Equivalents.
(iii) Unpaid Matured Deposits shows in Current Liabilities under Other Current Liabilities.
(iv) Preliminary Expenses not shown in balance sheet.
(v) Bills Payable shows in Current Liabilities under Trade Payables.
Question 11 B
Solution 11 A (new). (i) Patents and Trade Marks shows in Noncurrent assets under fixed assets (intangible assets).
(ii) Income Received in Advance shows in Current liabilities under Other current Liabilities.
(iii) Debentures issued by the Company shows in NonCurrent Liabilities under Longterm Borrowing.
(iv) Stores and Spareparts shows in Current Assets under Inventories.
(v) Motor Vehicles show in NonCurrent Assets under Fixed Assets (Tangible Assets).
(vi) Forfeited Shares Account shows in Shareholder’s Fund added to Subscribed Capital.
(vii) Government Securities shows in NonCurrent Assets under NonCurrent Investments.
(viii) Uncalled Liabilities on Partly paid shares shows in Commitments in notes to accounts.
Question.11
Solution .11 Current Liabilities:
 Short term Borrowing
 Trade Payable
 Other Current Liability
 Short Term Provision
Question 12 A (new).
Solution 12 A (new).
Question 12.
Solution 12.
Question 13 (new).
Solution 13 (new).
Question 13.
Solution 13.
Question 14 (new).
Solution 14 (new).
Question 14.
Solution 14.
i. Current
ii. Current
iii. NonCurrent
iv. Current
v. NonCurrent
vi. Current
Question 15 (new).
Solution 15 (new).
Question 15.
Solution 15.
Question 16 (new).
Solution 16 (new).
Question 16.
Solution 16. SubHeadings Under Current Assets:
 Current Investment
 Inventories
 Trade receivables
 Cash and cash equivalents
 Shortterm loans and advances
Question 17 A (new).
Solution 17 A (new).
Question 17 B (new).
Solution 17 B (new).
Question 17.
Solution 17.
Question 18 (new).
Solution 18 (new).
Question 18.
Solution 18. Revenue from Operations: Sales and Revenue from services rendered
Other Income: Interest on Loans given, Divided income, Sale of miscellaneous items and Refund of income tax.
Question 19 (new).
Solution 19 (new).
Question 19.
Solution .19 Revenue from Operations: Revenue from serviced rendered, Interest on loan given, and Dividend income
Other Income: Refund on income tax and Sale of miscellaneous items.
Question 20 (new).
Solution 20 (new).
Question.20.
Solution .20
Question 21 (new).
Solution 21 (new).
Question.21
Solution .21
Question 22 (new).
Solution 22 (new).
Question22.
Solution .22
Question 23 (new).
Solution 23 (new).
Question.23
Solution .23
Rs. 3,90,000 will be shown in the Statement of profit and Loss Against change in inventories.
Question 24 (new).
Solution 24 (new).
Question 24.
Solution 24.
Question 25 (new).
Solution 25 (new). Revenue from Operations: Sales and Revenue from services rendered
Other Income: Interest on Loans given, Divided income, Sale of miscellaneous items and Refund of income tax.
Question 25.
Solution 25.
Employee Benefit Expenses:
 Salaries
 Medical Expenses
 Gratuity paid
 Contribution on provident fund.
Other Income: Refund on income tax and Sale of miscellaneous items.
Question.26
Solution 26
Question 27 (new). Compute Revenue from Operations, Other Income and Total Revenue for a Manufacturing firm from the following information:
Sale of products Rs. 35,00,000; Sales Returns Rs. 50,000; Sale of Services Rs. 2,00,000; Sale of scrap Rs. 70,000; Sale of Miscellaneous items Rs. 6,000; Dividend Received Rs. 25,000
Solution 27 (new).
Question 27 Out of the following identify the items to be shown in the Notes of Accounts on Finance Costs:
 Interest paid in bank overdraft
 Interest paid on borrowings
 Interest received on term deposits
 Deposit on issue of debentures written off
 Interest paid on term loan
Solution 27.
Question 28 (new).
Solution 28 (new).
Question 28.
Solution .28
Question 29 (new).
Solution 29 (new).
Cost of Material Consumed:  Rs. 
Opening Inventory: Materials  4,20,000 
Add: Material Purchased  20,00,000 
 24,20,000 
Less: Closing Inventory of Material  3,80,000 
 20,40,000 
Question.29
Solution 29. Other Expenses:
 Consumptions of loose tools
 Courier expenses
 Carriage outwards
 Discount allowed
 Bank Charges
 Rent for Warehouse'
Question 30 (new).
Solution 30 (new).
Question 30.
Solution 30.
Question 31 (new).
Solution 31 (new).
Cost of Material Consumed:  Rs. 
Opening Inventory: Materials  12,50,000 
Add: Material Purchased  60,00,000 
 72,50,000 
Less: Closing Inventory of Material  15,00,000 
 57,50,000 
Question 31.
Solution 31.
Question 32 (new).
Solution 32 (new). Employee Benefit Expenses:
i. Salaries
ii. Medical Expenses
iv. Gratuity paid
vi Contribution on provident fund
Question 32.
Solution 32.
Question 33 A (new).
Solution 33 A (new).
Question. 33 (A)
Solution 33 (A).
 i. Outstanding salary: Current Liabilities under other Current Liabilities
 ii. Bank balance: Current Assets under cash and cash Equivalents.
 iii. Unpaid matured deposits: Current Liabilities under Other Current Liabilities.
 iv. Preliminary expenses: Not Shown in Balance Sheet since they are written off in the same year.
 v. Bills payable: Current Liabilities under Trade payables
 vi. Sale of services: Revenue from Operations.
 vii. Goodwill written off: Depreciation and Amortization Expenses.
 viii. Medical Expenses: Employee Benefit Expenses.
Question 33 (B).
Solution 33 (B).
Question 34 (new).
Solution 34 (new). Finance Cost:
i. Interest paid in bank overdraft
ii. Interest paid on borrowings
iii. Deposit on issue of debentures written off
iv. Interest paid on term loan
Question 34.
Solution 34.
Question 35 (new).
Solution 35 (new).
Finance Cost Rs. 6,86,000 (Interest Exp. RS. 6,50,000 plus Other Borrowing Costs Rs. 36,000)
Question 35.
Solution 35.
Question 36 (new).
Solution 36 (new). Other Expenses:
i. Consumptions of loose tools
iv. Courier expenses
v. Carriage outwards
vi. Discount allowed
vii. Bank Charges
viii. Rent for Warehouse
Question 36.
Solution 36.
Question 37 (new).
Solution 37 (new).
Question 37.
Solution 37.
Question 38 (new).
Solution 38 (new).
Question 38.
Solution 38.
Question 39 A (new).
Solution 39 A (new).
Question 39 (A).
Solution 39 (A).
Question.39 (B)
Solution .39 (B)
Question 40 (new).
Solution 40 (new). These five items shown under Reserve and Surplus are:
i. Capital Reserves;
ii. Securities Premium Reserve;
iii. Debenture Redemption Reserve;
iv. Revaluation Reserve;
v. Capital Redemption Reserve
Question 40.
Solution 40.
Question 41 (new).
Solution 41 (new).
Question 41.
Solution 41.
Question 42 (new).
Solution 42 (new).
Other Current Assets  Other Current Liabilities 
Unpaid dividend  Prepaid expenses 
Interest accrued and due  Accrued income 
Income received in advance  Advance taxes 
Calls in Advance 

Question 42.
Solution 42.
Question 43 (new).
Solution 43 (new).
Question 43.
Solution 43.
Question 44 (new).
Solution 44 (new). Rs. 45,00,000 as Long term Borrowings
Rs. 15,00,000 as Other Current Liabilities
Question 44.
Solution 44. These five items shown under Reserve and Surplus are:
 Capital Reserves;
 Securities Premium Reserve;
 Debenture Redemption Reserve;
 Revaluation Reserve;
 Capital Redemption Reserve
.
Question 45.
Solution 45.
Question.46.
Solution .46
Question.47
Solution .47
Question.48
Solution .48
Question.49
Solution .49
Question.50.
Solution .50
Question.51
Solution .51
Question.52
Solution .52
Question.53
Solution .53