TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021

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Solutions for T.S. Grewal's Double Entry Book Keeping: Accounting for Not for Profit Organizations and Partnership Firms (Vol.3)
Textbook for CBSE Class 12 TS Grewal Solutions Class 12 Accountancy
Chapter 1
Financial Statement of Companies

 
Question 1. What are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III?
Answer:
The following are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III:
(a) Shareholder Fund
(b) Share Application Money Pending Allotment
(c) Non-current Liabilities
(d) Current Liabilities
 
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021
 
 
Question 2. Under which major head will the following be shown:
(i) Share Capital and (ii) Money Received Against Share Warrants?
Answer:
Under the following major heads the following items will be shown as given below:
 
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-
 
 
Question 3. List any five items that are shown under Reserves and Surplus.
Answer:
The following are the five items shown under Reserve and Surplus:
(i) Capital Reserves.
(ii) Capital Redemption Reserve.
(iii) Securities Premium Reserve.
(iv) Debentures Redemption Reserve
(v) Revolution Reserve
 
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:
Under the sub-head Non-current Liabilities the following items will be classified or shown as given below:
(i) Long-term borrowings
(ii) Deferred tax Liabilities
(iii) Long-term Provisions
 
Question 5. Name the items that are shown under Long-term Borrowings.
Answer:
The following items are shown under long-term Borrowings.
(i) Debentures/Bonds
(ii) Loans
(iii) Deposits
(iv) Other Loans and Advances (nature to be specified)
(Long-term borrowings are further categorizes as secured and unsecured borrowing. In case of secured borrowing, details of securities are to be given)
 
 

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?

Answer:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A

 

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.

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A1
Answer:

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:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A2

Answer:

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?

Answer:

The following items are shown in the Balance Sheet of a company under Schedule III under the appropriated head as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A3


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:

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:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A4


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:

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.

Answer:

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:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A5


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:

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:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A6

 

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?

Answer:

Under the following heads of the Assets part of the Balance Sheet the following items classified or shown as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A7

 

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)?

Answer:

Under the following heads of the Assets part of the Balance Sheet the following items classified or shown as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A8

 

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:

Under the following heads of the Balance Sheet the following items will be shown as given below:          

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A9


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?

Answer:

Under the following heads of the Balance Sheet the following items will be shown as given below:          

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A10


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?

Answer:

Under the following heads of the Balance Sheet the following items will be shown as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A10

 

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?

Answer:

Under the following heads of the Balance Sheet the following items will be shown as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A11


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:

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:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A12

 

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:

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:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A13


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.

Answer:

Under the following heads of the Balance Sheet the following items will be shown as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A14


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?

Answer:

Under the following heads of the Balance Sheet the following items will be shown as given below:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A15

 

Question 24. Hero Ltd. has raised following long-term loans on 1st April, 2017:
10,000; 10% Debentures of Rs.100 each redeemable in four equal yearly
instalments beginning 1st July, 2018                               10,00,000
11 % Bank Loan from SBI repayable after 5 years         20,00,000
Interest on Debentures and Bank Loan has not yet been paid
How will be the above items shown in the Balance Sheet of the company as at 31st March, 2018?
Answer:
The items will be shown in the Balance Sheet of the company as at 31st March,… are as follows:
 
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A16
 
Question 25. Prepare Balance Sheet of the Company as per Schedule III of the Companies Act, 2013:
                                                                  Rs.
10% Debentures of RS. 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….. as per Schedule III of the Companies Act, 2013
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A17
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A18
 
Point of Knowledge:-
1. Totalling of Balance Sheet is not required due to absence of other required information’s. 
 
Question 26. Prepare Balance Sheet of VT Ltd. as at 31st March 2018, from the following information as per Schedule III, Part I of the Companies Act, 2013:
General Reserve                                                                            3,000          Fixed Assets: Tangible Assets (Cost)  9,000
8% Debenture                                                                               3,000           Current Liabilities                               2,500
Surplus, i.e., Balance in Statement of Profit and Loss (Credit)  1,200           Share Capital                                       5,000
Depreciation of Fixed Assets                                                           700           Current Assets                                     6,400
 
Answer:
Balance Sheet of V.T. Ltd. as at 31st March,…. as per Schedule III part I of the Companies Act, 2013;
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A19
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A20
 
 
Question 27. From the following information extracted from the books of Z Ltd., prepare Balance Sheet of the company as at 31st March, 2018 as per Schedule III of the Companies Act, 2013: 
                                                                   (in ‘000)                                                 (in ‘000)
General Reserve                                         1,000            Fixed Assets (Tangible)    1,600
Trade Payable                                                  60            Inventories                             40
Share Capital                                                 800            Trade Receivable                  160
Reserves and Surplus                                    180           Cash and Cash Equivalents   240
 
Answer:
Balance Sheet of Z Ltd.as on 31st March,….. as per Schedule VI Part I of the Companies Act, 2013  
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A21
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A22
 
 
Question 28. Prepare Balance Sheet of X Ltd. as at 31st March, 2016 from the following information:
                                                         Amount                                                                                                               Amount
Equity Share Capital                        20,00,000        Surplus, i.e., Balance in Statement of Profit and Loss (Cr.)   3,00,000
12% Preference Share Capital       10,00,000        Stock                                                                                          6,00,000
Fixed Assets (At cost)                     46,60,000        Sundry Debtors                                                                         8,00,000
Depreciation Written off till date    16,60,000        Cash                                                                                          1,50,000
Investments                                     4,00,000         Loans and Advances                                                                     50,000
Current Liabilities                            8,00,000         Provision for Taxation                                                               2,00,000
12% Debentures                             6,00,000         Workmen Compensation Reserve                                             1,00,000
 
Answer:
Balance Sheet of X Ltd. As at 31st March,….. as per Schedule VI Part I of the Companies Act, 2013
 
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A24
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A25
 
 

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?

Answer:

Under the following head the following revenue items of a non-financial company will be classified or shown:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A26
 

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?

Answer:

Under the following head the following revenue items of a financial company will be classified or shown:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A27

 

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:

Under the following head the following revenue items of a financial company will be classified or shown:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A28


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.

Answer:

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.

Answer:

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.

Answer:

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.

Answer:

Calculation of Change in Inventory:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A29


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.

Answer:

Calculation of Change in Inventory:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A30

 

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.

Answer:

Calculation of Change in Inventory of Work-in-Progress:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A31


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.

Answer:

Calculation of Change in Inventory of Work-in-Progress:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A32

 

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.

Answer:

Calculation of Change in Inventory of Stock-in-Trade:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A33

 

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.

Answer:

Calculation of Change in Inventory of Stock-in-Trade: 

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A35 

 

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:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A34

Answer:

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……….

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A36

 

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.

Answer:
 

Computation of the amount to be shown in Note of Accounts on Employees Benefit Expenses:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A37

 

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.

Answer:

Computation of the amount to be shown in Note of Accounts on Employees Benefit Expenses:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A38


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.

Answer:

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.

Answer:

Computation of the amount to be shown in Note of Accounts on Finance Costs:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A39

 

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.

Answer:

Computation of the amount to be shown in Note to Accounts on Depreciation and Amortisation:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A40

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.

Answer:

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?

Answer:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A41 

 

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?

Answer:

TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A42

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?

Answer:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A43

 

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.

Answer:

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:

 TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021-A44

The two identified values that a company should observe while preparing its financial statements are:

(i) Consistency

(ii) Transparency.

 

 

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