Read TS Grewal Accountancy Class 12 Solution Chapter 1 Financial Statement of a Company 2023 2024. Students should study TS Grewal Solutions Class 12 Accountancy available on Studiestoday.com with solved questions and answers. These chapter-wise answers for Class 12 Accountancy have been prepared by expert teachers of Grade 12. These TS Grewal Class 12 Solutions have been designed as per the latest accountancy TS Grewal Book for Class 12 and if practiced thoroughly can help you to score good marks in standard 12 Accounts class tests and examinations.
Class 12 Accounts Chapter 1 Financial Statement of a Company TS Grewal Solutions
TS Grewal Solutions for Chapter 1 Financial Statement of a Company Class 12 Accounts have been provided below based on the latest TS Grewal Class 12 book. The answers have been prepared based on the latest 2023 2024 book for the current academic year. TS Grewal Solutions Class 12 will help students to improve their concepts and easily solve accountancy questions for Class 12. Class 12 Grewal solutions should be revised regularly as more practice will help you get a better rank and easily solve more questions.
Chapter 1 Financial Statement of a Company TS Grewal Class 12 Solutions
About the chapter: TS Grewal Class 12 Chapter 1 Financial Statements of a Company is a very important chapter for class 12 students who are currently pursuing commerce and are studying accountancy. In this chapter, the students will be able to understand about various financial statements which are published by various organizations such as balance sheet profit and loss account, cash flow statements, trial balance and various other schedules which are prepared based on which the financial situation of a company and accuracy of accounting is understood. The financial statements are prepared as for the Companies Act 2013 which has also been explained in this chapter. it is very important for the students to understand this chapter as understanding of financial statements will be used throughout their life if they plan to pursue their career in accountancy. Lot of questions are asked in the Class 12 examinations relating to this chapter. Students are also required to solve lot of practical questions which have been given at the end of this chapter. Our expert accountancy teachers have solved all the questions and have given the answers below.
Solutions for T.S. Grewal's Analysis of Financial Statements
Textbook for CBSE Class 12 TS Grewal Solutions Class 12 Accountancy
Chapter 1 Financial Statement of Companies
Question 6. A company has an opening credit balance in Surplus, i.e., Balance in Statement of Profit and Loss of Rs. 1,00,000. During the year, it earned a profit of Rs. 75,000. It decided to transfer Rs. 15,000 to Debentures Redemption Reserve (DRR) and also proposed to pay dividend of Rs. 25,000.
How will be the appropriations shown in the financial statements?
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.
The Trade Receivables are classified as Current Assets or Non-current Assets in the Balance Sheet of a Company as per Schedule III in the following cases are explained with reason:
Case1: Current Assets
Reason: They are realisable within the period of 12 months from the date of Balance Sheet.
Case 2: Current Assets
Reason: They are realisable within the period of 12 month from the date of Balance Sheet.
Case 3: Non-current Assets
Reason: They are realisable not within the period of 12 month from the date of Balance Sheet.
Case 4: Current Assets
Reason: They are realisable within the period of operating cycle of the business.
Case 5: Non-current Assets
Reason: They are realisable not within the period of 12 months from the date of Balance Sheet and also not within the operating cycle period.
Question 8. State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:
The Trade Payable is classified as Current Liabilities or Non-current Liabilities in the Balance Sheet of a company as per Schedule III in the following cases are given with reasons.
Case-1: Current Liabilities
Reason: They are payable within the period of 12 months from the date of Balance Sheet.
Case-2: Current Liabilities
Reasons: They are payable within the period of 12 months from the date of Balance Sheet.
Case 3: Non – Current Liabilities
Reason: They are payable not within the period of 12 months from the date of Balance Sheet.
Case 4: Current Liabilities
Reason: They are payable within the period of operating cycle of the business.
Case 5: Non-current Liabilities
Reason: They are payable not within a period of 12 months from the date of Balance Sheet and also not within the period of operating cycle of the business.
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?
The following items are shown in the Balance Sheet of a company under Schedule III under the appropriated head as given below:
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?
Under the following main head and sub-head of Equity and Liabilities part of the Balance Sheet the following items classified or shown as given below:
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.
Any two items that are included in the following major heads under which liabilities of a company are shown:
(i) Reserve and Surplus:
(a) Capital Reserve
(b) Capital Redemption Reserve
(ii) Long-term Borrowings:
(a) Debentures
(b) Public Deposits
(iii) Short-term Borrowings
(a) Bank Overdraft
(b) Loan Repayable on Demand
(iv) Other Current Liabilities
(a) Interest accrued but not Due on Borrowings
(b) Unpaid Dividends
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.
Under the following main head and sub-head in the Balance Sheet as per Schedule III of the Companies Act, 2013, the following items are classified:
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?
Under the following main head and sub-head of the Assets part of the Balance Sheet the following items classified or shown as given below:
Question 14. Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a company: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash?
Under the following heads of the Assets part of the Balance Sheet the following items classified or shown as given below:
Question 15. Under which heads the following items on the Assets part of the Balance Sheet of a company will be presented?
(i) Sundry Debtors; (ii) Patents and Trademarks; (iii) Shares in Question uoted Companies; (iv) Advances recoverable in cash; (v) Prepaid Insurance; and (vi) Work-in-Progress (Machinery)?
Under the following heads of the Assets part of the Balance Sheet the following items classified or shown as given below:
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?
Under the following heads of the Balance Sheet the following items will be shown as given below:
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 Dividends; (vii) Shares Option Outstanding Account; (viii) General Reserve; and (ix) Subsidy Reserve?
Under the following heads of the Balance Sheet the following items will be shown as given below:
Question 18. Under which heads the following items are shown in the Balance Sheet of a company:
(i) Calls-in-Arrears; (ii) Commission Received in Advance; (iii) Debentures; (iv) Stores and Spare Parts; (v) Land and Building; (vi) Forfeited Shares Account; (vii) Government Securities; and (viii) Uncalled Liability on parity paid Shares?
Under the following heads of the Balance Sheet the following items will be shown as given below:
Question 19. Under which heads the following are shown in a company's Balance Sheet:
(i) Public Deposits; (ii) Office Furniture; (iii) Prepaid Rent; (iv) Outstanding Salaries; (v) Computer Software; (vi) Interest Accrued on Investment; (vii) Bills discounted but not matured; and (viii) Livestock?
Under the following heads of the Balance Sheet the following items will be shown as given below:
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.
Under the following 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:
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
Under the following 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:
Question 22. Under which heads and Sub-heads the following are shown in a company's Balance Sheet:
(i) Provision for Employee Benefits; (ii) Calls-in-Advance.
Under the following heads of the Balance Sheet the following items will be shown as given below:
Question 23. 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?
Under the following heads of the Balance Sheet the following items will be shown as given below:
Question 29. 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?
Under the following head the following revenue items of a non-financial company will be classified or shown:
Question 30. 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?
Under the following head the following revenue items of a financial company will be classified or shown:
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?
Under the following head the following revenue items of a financial company will be classified or shown:
Question 32. Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials ₹5,00,000; Purchase of Materials ₹25,00,000; and Closing Inventory of Materials ₹4,00,000.
Cost of Materials Consumed = Opening Inventory of Materials + Purchase of Materials – Closing Inventory of Materials
= Rs. 5,00,000 + Rs. 25,00,000 – Rs. 4,00,000
= Rs. 26,00,000
Question 33. Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials ₹2,50,000; Finished Goods ₹1,00,000; Closing Inventory of Materials ₹2,25,000; Finished Goods ₹75,000; Raw Material purchased during the year ₹15,00,000.
Cost of Materials Consumed = Opening Inventory of Materials + Purchases of Materials – Closing Inventory of Materials
= Rs. 2,50,000 + Rs. 15,00,000 – Rs. 2,25,000
= Rs. 15,25,000
Question 34. Calculate Cost of Materials Consumed from the following:
Opening Inventory of Materials ₹3,50,000; Finished Goods ₹75,000; Stock-in-Trade ₹2,00,000; Closing Inventory of: Materials ₹3,25,000; Finished Goods ₹85,000; Stock-in-Trade ₹1,50,000; Purchases during the year: Raw Material ₹17,50,000; Stock-in-Trade ₹9,00,000.
Cost of Materials Consumed = Opening Inventory of Materials + Purchases of Materials – Closing Inventory of Materials
= Rs. 3,50,000 + Rs. 17,50,000 – Rs. 3,25,000
= Rs. 17,75,000
Question 35. From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods ₹2,00,000 and ₹1,75,000 respectively.
Calculation of Change in Inventory:
Question 36. From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods ₹2,50,000 and ₹2,00,000 respectively.
Calculation of Change in Inventory:
Question 37. From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,00,000 and ₹1,15,000 respectively.
Calculation of Change in Inventory of Work-in-Progress:
Question 38. From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,50,000 and ₹1,45,000 respectively.
Calculation of Change in Inventory of Work-in-Progress:
Question 39. From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,50,000 respectively.
Calculation of Change in Inventory of Stock-in-Trade:
Question 40. From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,00,000 respectively.
Calculation of Change in Inventory of Stock-in-Trade:
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 inventories of Finished Goods, WIP and stock-in-Trade:
Calculate the amount that will be shown in the Note to Accounts on Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade from the following information of Hospitality Ltd. For the year ended 31st March……….
Question 42. From the following information compute the amount to be shown in Note to Accounts on Employees Benefit Expenses: Wages ₹ 5,40,000; Salaries ₹ 7,20,000; bonus ₹ 1,05,000; Staff Welfare Expenses ₹ 60,000 and Business Promotion Expenses ₹ 50,000.
Computation of the amount to be shown in Note of Accounts on Employees Benefit Expenses:
Question 43. From the following information, prepare Note to Accounts on Employees Benefit Expenses: Wages ₹ 2,70,000; Salaries ₹ 3,60,000; Staff Welfare Expenses 60,000; Printing and Stationery Expenses ₹ 20,000 and Business Promotion Expenses ₹ 50,000.
Computation of the amount to be shown in Note of Accounts on Employees Benefit Expenses:
Question 44. 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.
The items shown in the Note of Accounts of Finance Costs are:
(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.
Question 45. 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.
Computation of the amount to be shown in Note of Accounts on Finance Costs:
Question 46. From the following information of Best Marketing Ltd. for the year ended 31st March, 2018, prepare Note to Accounts on Depreciation and Amortisation Expenses:
Depreciation on: Building ₹15,500; Plant and Machinery ₹25,000; Computers ₹ 60,000; Goodwill written off ₹ 7,500; Patents written off ₹ 12,500.
Computation of the amount to be shown in Note to Accounts on Depreciation and Amortisation:
Question 47. 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.
The following items will be shown in the Note to Accounts on other Expenses Head:
(ii) Postage Expenses
(iii) Telephone and Internet Expenses
(iv) Rent for Warehouse
(v) Carriage Inwards
(viii) Computer hiring charges
(ix) Audit Fee.
Question 48. 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?
Question 49. 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?
Question 50. 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?
Question .51 Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organisations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way. From the above statement, identify any two values that a company should observe while preparing its financial statements. Also, state under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013:
(i) Capital Reserve; (ii) Calls-in-Advance;
(iii) Loose Tools; and (iv) Bank Overdraft.
Under the following major headings and sub-headings in the Balance Sheet as per Schedule III of the Companies Act, 2013, the following items are presented:
The two identified values that a company should observe while preparing its financial statements are:
(i) Consistency
(ii) Transparency.