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A company has an operating cycle of eight months. It has accounts receivables amounting to ₹ 1,00,000 out of which ₹ 60,000 have a maturity period of 11 months. - Accounts

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प्रश्न

A company has an operating cycle of eight months. It has accounts receivables amounting to ₹ 1,00,000 out of which ₹ 60,000 have a maturity period of 11 months. How would this information be presented in the balance sheet?

विकल्प

  • ₹ 40,000 as current assets and ₹ 60,000 as non-current assets

  • ₹ 60,000 as current assets and ₹ 40,000 as non-current assets

  • ₹ 1,00,000 as non-current assets

  • ₹ 1,00,000 as Current assets

MCQ
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उत्तर

₹ 1,00,000 as Current assets

Explanation:

Assets expected to be realized within 12 months from the balance sheet date are classified as current assets. Since the maturity periods (8 months and 11 months) are both within 12 months, the entire receivables amount is classified as current assets, irrespective of the operating cycle length.

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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 9: Financial Statements of Companies - OBJECTIVE TYPE QUESTIONS [पृष्ठ ९.७५]

APPEARS IN

डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
अध्याय 9 Financial Statements of Companies
OBJECTIVE TYPE QUESTIONS | Q (A) 46. | पृष्ठ ९.७५

संबंधित प्रश्न

State any objective of Financial Statement Analysis’.


Show the following items in the balance sheet as per the provisions of the Companies Act, 2013 in Schedule III:

Particulars  Rs. Particulars  Rs.
Preliminary Expenses 2,40,000 Good will 30,000
Discount on issue of shares 20,000 Loose tools 12,000
10% Debentures 2,00,000 Motor Vehicles 4,75,000
Stock in Trade 1,40,000 Provision for tax 16,000
Cash at bank 1,35,000    
Bills receivable 1,20,000  

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?


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 Accounts

(vi) Sundry Creditors and

(vii) Interest Accrued but not Due on Debentures ?

 

Prepare Balance Sheet of VT Ltd. as at 31st March 2019, 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% Debentures 3,000   Other 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   Other Current Assets 6,400

Which of the following statement is not true?


‘Financial statements are prepared based on past data’. Explain how this is a limitation.


Which of the following points explain the nature of financial statements?


For income measurement ______ basis of accounting is followed.


Richa and Anmol are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 2,50,000 and ₹ 1,50,000 respectively. Interest on capital is agreed @6% p.a. Anmol is to be allowed an annual salary of ₹ 12,500. During the year ended 31st March 2023, the profits of the year prior to calculation of interest on capital but after charging Anmol’s salary amounted to ₹ 62,000. A provision of 5% of this profit is to be made in respect of manager’s commission.

Following is their Profit & Loss Appropriation Account:

Particulars (₹) Particulars (₹)
To Interest on Capital   By Profit & loss account (After manager’s commission) __(2)__
Richa ______    
Anmol ______    
To Anmol’s Salary a/c 12,500    
To Profit transferred to: Richa’s Capital A/C (1) __(1)__    
Anmol’s Capital A/c ______    
  ______   ______

The amount to be reflected in blank (2) will be:


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