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Balance Sheet is a Nominal Account. - Book Keeping and Accountancy

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प्रश्न

Balance sheet is a nominal account.

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उत्तर

False.

shaalaa.com
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2014-2015 (March)

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संबंधित प्रश्न

Give one word/term/phrase for the following statement.

An asset which can be converted into cash immediately.


Capital balance is ascertained by preparing....................................

  1. Statement of affairs
  2. Cash account
  3. Drawing account
  4. Debtor’s account

What do you mean by Analysis of Financial Statement?


JW Ltd. was a company manufacturing geysers. As a part of its long-term goal for an expansion, the company decided to identify the opportunity in rural areas. The initial plan was rolled out for Bhiwani village in Haryana. Since the village did not have a regular supply of electricity, the company decided to manufacture solar geysers. The core team consisting of the Regional Manager, Accountant and the Marketing Manager was taken from the Head Office and the remaining employees were selected from the village and neighbourhood areas. At the time of preparation of financial statements, the accountant of the company fell sick and the company debuted a junior accountant temporarily from the village for two months. The Balance Sheet prepared by the junior accountant showed the following items against the Major Heads and Sub-heads mentioned which were not as per Schedule III of the Companies Act, 2013.

Items Major Head/Sub-Head
Loose Tools Trade Receivables
Cheques in Hand Current Investments
Term Loan from Bank Other Long-term Liabilities
Computer Software Tangible Fixed Assets

Identify any two values that the company wants to communicate to the society. Also, present the above items under the correct major heads and sub-heads as per Schedule III of the Companies Act, 2013.


State the significance of Analysis of Financial Statements to the ‘Lenders’.


From the following information of a club show the amounts of match expenses and match fund in the Financial Statement of the Club for the year ended on 31st March, 2009 and 31st March, 2010. 

                                 Details

Amount

Rs

Match expenses (Paid during the year 2009-2010)

30,000

Match Fund (as on 31-3-2009)

17,000

Donation for Match Fund (Received during the year 2009 – 2010)

9,000

Proceeds from the sale of match tickets (Received during the year 2009-2010)

3,000

 


State whether following statement is true or false :
Analysis of financial statement is a tool but not a remedy.


Select the appropriate answer from the alternatives given below & rewrite the completed statement

Cash proceeds from issue of debentures is _______________.


Select the appropriate answer from the alternatives given below & rewrite the completed statement
Bills payable is _____________.


Give one word/term/ phrase for the following statement
Critical evaluation of financial statement to measure profitability.


Answer the following in brief :
What do you mean by analysis of financial statements?

 

Answer the following in brief :
State any three limitations of Analysis of financial statement.


Explain the limitations of analysis of financial statements.


Bill Payable is ___________


State true or false with reason.

Financial Statement includes only Balance Sheet.


State true or false with reason.

Dividend paid is not a source of fund


State true or false with reason.

Ratio analysis measures profitability efficiency and financial soundness of the business.


Answer in one sentence only.

Give any three examples of current assets?


Answer in one sentence only.

State the formula of Cost of goods sold?


Balance sheet provides information about the financial position of a business concern


The term fund’ refers to


Convert following Trading Account and Profit and Loss Account into Vertical Income Statement:

Dr. Trading, Profit and Loss Account
for the year ended as on 31st March,2020 
Cr.
Particulars Amount ₹ Particulars Amount ₹
To Opening stock 20,000 By Sales 1,20,000
To Purchases 90,000 By Closing Stock 30,000
To Carriage inward 500    
To Wages 10,000    
To Gross Profit c/d 29,500    
Total 1,50,000 Total  1,50,000
To Office expenses 12,500 By Gross Profit b/d 29,500
To Selling expenses 10,000    
To Finance expenses 3,000    
To Net Profit c/d 4,000    
  29,500   29,500

Under which major heads and sub-heads will the following items be presented in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013?

  1. Bills Receivable
  2. Securities premium reserve
  3. Calls in advance

It is technique which involves regrouping of data by application of arithmetical relationships. Identify the technique and state any two advantages of the technique identified.


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