TS Grewal solutions for अकाऊंटन्सी अनॅलिसिस ऑफ फाइनैन्शल स्टंटमेंट्स [इंग्रजी] इयत्ता १२ chapter 1 - Financial Statements of a Company [Latest edition]

The Balance Sheet shows the financial position of an enterprise ______.

The financial statements of a business enterprise include ______.

Which of the following statements shows the financial position of a company as at a given date?

A Statement of Assets (Current and Non-current), Liabilities (Current and Non-current) and Equity (i.e., Shareholders' Funds) showing the financial position of an enterprise at a given date is known as ______.

Debentures redeemable after 10 years from the date of issue are shown as ______.

Name the item out of the following which is shown as Short-term Provision:

Money Received Against Share Warrants is shown in the Balance Sheet under ______.

Share Application Money (Refundable) is shown in the Balance Sheet as ______.

Schedule III has prescribed ...?... format of presentation of Balance Sheet.

Match Group I with Group II and select the correct answer using the codes given below the lists:

Calls-in-Advance and interest payable thereon is shown in the Balance Sheet as ______.

Which of the following is not shown under the heading “Non-current Assets”?

Mining Rights are ______.

Premium on Redemption of Debentures is shown in the Balance Sheet as ______.

‘Loose Tools’ appear in the company’s Balance Sheet under the head/sub-head ______.

Surplus, i.e., Balance in Statement of Profit & Loss is shown in the Balance Sheet under ______.

In a company’s balance sheet, the debit balance of the statement of profit & loss is shown under ______.

Identify the item which is not a part of Shareholders’ Funds:

Which of the following is not a sub-head under the current assets?

From the given items which is a part of Current Liabilities:

Which of the following is not shown as Non-Current Liabilities in the Balance Sheet?

Interest Accrued but not Due on Debentures will be shown under the heading ______.

As per Schedule IIIl, Part I of the Companies Act, 2013 ‘Unpaid dividend’ will be presented under which of the following head/sub-head in the Balance Sheet of a company?

Claims against the company not acknowledged as debt is shown as ______.

Match Group I with Group II and select the correct answer using the codes given below the lists:

Which of the following is not presented under ‘Current Liabilities’ in the Balance Sheet of a company?

According to Schedule III of the Companies Act, 2013, which asset is shown as the first entry?

Which of the following items is shown under the head ‘Non-current Assets’, in the Balance Sheet of a company?

‘Calls-in-Advance’ is shown in the company’s Balance Sheet under the head ______.

In the Balance Sheet of a Company, Securities Premium is shown under ______.

An operating cycle is the time between the ______.

If the Operating Cycle cannot be identified, it is assumed to be a period of ______.

In the following case, Operating Cycle = ?

Trade Payable of a company, whose Operating Cycle Period is 18 months, is payable in 24 months, will be ______.

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?

Zee Ltd. has an Operating Cycle Period of 20 months. A trade receivable is realisable in 20 months, it will be shown under ______.

In a company’s Balance Sheet, Provision for Employees Benefits to be settled within 12 months is shown under ______.

A company had following balances in their books of Accounts.

Determine the amount of Change in Inventories to be shown in Statement of Profit and Loss Account.

Out of the following, identify the item that is not shown in the Note to Accounts on Finance Costs:

Under which of the following head/sub-head is ‘Forfeited Shares’ presented in the Balance Sheet of a Company?

Assertion (A): Financial statements of a company are prepared in the form prescribed in Schedule III of the Companies Act, 2013.

Reason (R): The Companies Act, 2013, prescribes Schedule III, as per which financial statements are prepared by all companies.

In the context of the above two statements, which option is correct?

Assertion (A): Balance Sheet is a list of assets and liabilities of the company presented in a specified form for the year ended on that date.

Reason (R): Balance Sheet is a statement of revenue and expenses of the company as at that date.

In the context of the above two statements, which option is correct?

Assertion (A): Financial Statements are the summarised statements which give information as to financial performance and financial position of the company.

Reason (R): Statement of Profit & Loss gives the information as to net profit or net loss for the year while Balance Sheet gives information of financial position of the company as at that date.

In the context of the above two statements, which option is correct?

Assertion (A): Two broad heads under which Balance Sheet is prepared are Equity & Liabilities and Assets.

Reason (R): Part I of Schedule Ill of the Companies Act, 2013 prescribes to show Equity & Liabilities in first part followed by Assets in the second part.

In the context of the above two statements, which option is correct?

Assertion (A): Surplus, i.e., Balance in Statement of Profit & Loss is shown under Reserves and Surplus.

Reason (R): Surplus, i.e., Balance in Statement of Profit & Loss is an item of Balance Sheet which shows accumulated profits or losses.

In the context of the above two statements, which option is correct?

Assertion (A): Non-current Liabilities are the liabilities which are not Current Liabilities.

Reason (R): Liabilities are of two types, i.e., Non-current Liabilities and Current Liabilities.

In the context of the above two statements, which option is correct?

Assertion (A): Interest accrued but not due and interest accrued and due are shown as Other Current Liabilities.

Reason (R): Since both interest accrued but not due and interest accrued and due are payable within 12 months from the date of Balance Sheet, they are shown as Other Current Liabilities.

In the context of the above two statements, which option is correct?

Assertion (A): Dividend Payable or Unpaid Dividend is a Short-term Provision and shown under the main head Current Liabilities.

Reason (R): Dividend Payable or Unpaid Dividend is not a provision but a liability and is shown under Other Non-current Liabilities.

In the context of the above two statements, which option is correct?

Assertion (A): Property, Plant and Equipment (Fixed Assets) is shown as Non-current Asset in the Balance Sheet of a company.

Reason (R): Property, Plant and Equipment (Fixed Assets) are used for a long time hence, is a Non-current Asset. Schedule III (Part I) of the Companies Act, 2013 requires it to be shown as Non-current Asset.

In the context of the above two statements, which option is correct?

Assertion (A): Intangible Assets are the Assets which do not have physical existence.

Reason (R): Intangible Assets are shown under the head ‘Current Assets’ and Sub-head ‘Other-current Assets’.

In the context of the above two statements, which option is correct?

Assertion (A): Contingent Liabilities are not the liabilities payable yet but may become liabilities when an event associated with it happens in future.

Reason (R): Proposed Dividend is a Contingent Liability because it will become a liability after the shareholders declare, i.e., approve it.

In the context of the above two statements, which option is correct?

Shapoorji Pallonji group and Wilson Renewable Energy Ltd. is considering an Equity Share sale to raise up to1,500 crore to repay its debts maturing this financial year.

This repayment of debt would have been shown by the company in the Balance Sheet of 2023–24 as:

Venus Ltd. provides you with the following information:

1. ₹ 2,00,000 10% Debentures of ₹ 100 each issued at par on 1.07.2022 to be redeemed in a lump sum on 30.06.2026.
2. Interest is payable half-yearly, on 31st December and 30th June every year.
3. Interest on Debentures paid till 31.3.2023 is ₹ 3,000.

How will the interest on Debentures be shown under Other Current Liabilities in the notes to accounts accompanying the Balance Sheet of Venus Ltd. as at 31st March, 2023?

Savory Ltd. had issued ₹ 1,00,000 shares of ₹ 10 each at par payable ₹ 4 on application and balance on allotment on 25th March, 2026.

It received ₹ 10,00,000 as application money.

Shares were allotted on 10th April, 2026.

How much amounts will be shown in the Balance Sheet as at 31st March, 2026 against

1. Shares Application Money Pending Allotment, and
2. Shares Application Money and under which main head and sub-head?

Give reason for showing it under the respective heads.

Partha Ltd. issued ₹ 1,00,000 shares of ₹ 10 each payable with applications. It received ₹ 8,00,000 Application Money.

Under which Main head and Sub-head it will be shown in the Balance Sheet and why?

Sachin, Saurav and Rahul are civil engineers. They incorporated a real estate company called SSR Realty Ltd. in the year 2017, to engage in purchase and sale of properties (i.e., land, buildings, flats, apartments, etc.). Extracts related to the Balance Sheet of their company is given as follows, but is not arranged as per Schedule III, Part I of Companies Act, 2013:

Based on the above information, answer the following questions:

1. Balance to be shown in Balance Sheet as Shareholders’ Funds is ______.
   1. ₹ 7,20,000
   2. ₹ 2,30,000
   3. ₹ 9,50,000
   4. ₹ 4,90,000
2. Balance of Non-current Liabilities is ______.
   1. ₹ 2,30,000.
   2. ₹ 3,90,000
   3. ₹ 5,20,000
   4. ₹ 1,60,000
3. Non-current Assets in the Balance Sheet will be ______.
   1. ₹ 2,60,000
   2. ₹ 14,20,000
   3. ₹ 11,60,000
   4. ₹ 16,60,000
4. Investment in Mutual Funds is ______.
   1. ₹ 5,000
   2. ₹ 25,000
   3. ₹ 1,25,000
   4. ₹ 65,000

Zaika Foods Limited, a food chain company has certain items which have not yet been categorised according to the Schedule III of Companies Act, 2013:

Based on the above information, answer the following questions:

1. Money Received against Share Warrants is to be shown under ______.
   1. Non-current Liabilities.
   2. Current Assets.
   3. Current Liabilities.
   4. Shareholders’ Funds.
2. Identify an item from the options below which should be classified under Cash & Cash Equivalents in the Balance Sheet.
   1. Cash at Bank
   2. Bank Overdraft
   3. Investment in Government Securities with maturity period less than 12 months
   4. Marketable Securities
3. Current Investments are ______.
   1. ₹ 90,000.
   2. ₹ 1,40,000.
   3. ₹ 2,05,000.
   4. ₹ 25,000.
4. Patented Recipes are classified as ______.
   1. Current Assets.
   2. Shareholders’ Funds.
   3. Non-Current Assets.
   4. None of these.

Knowledge Park Ltd. requires your assistance in quantifying/classifying certain items as per Schedule III of the Companies Act, 2013:

Based on the above information, answer the following questions.

1. Cash and Cash Equivalent is ______.
   1. ₹ 22,10,000
   2. ₹ 16,70,000
   3. ₹ 21,40,000
   4. ₹ 14,00,000
2. Correct heading and sub-heading for 'Bank Deposits with more than 12 months maturity':
   1. Current Assets - Current Investments
   2. Non-current Assets - Property, Plant and Equipment
   3. Current Assets - Cash & Cash equivalents
   4. Current Assets - Other Current Assets
3. Total value of Intangible Assets is ______.
   1. ₹ 12,05,000
   2. ₹ 11,00,000
   3. ₹ 21,55,000
   4. ₹ 16,25,000
4. Long-term Borrowings to be shown in the Balance Sheet are ______.
   1. ₹ 14,90,000
   2. ₹ 15,90,000
   3. ₹ 8,40,000
   4. None of these.

Accountant of Glimpse India Private Ltd. resigned without completing the financial statements. Management is unsure how balances of certain heads are to be computed for the purpose of preparing the Balance Sheet as per Schedule III of Companies Act, 2013. In this regard, they have sought your assistance. Information for the purpose is as follows:

Based on the above information, answer the following questions.

1. Current Assets to be shown in the Balance Sheet is ______.
   1. ₹ 31,00,000
   2. ₹ 44,00,000
   3. ₹ 18,40,000
   4. ₹ 11,50,000
2. Value of Non-current Assets is ______.
   1. ₹ 44,70,000
   2. ₹ 24,00,000
   3. ₹ 31,50,000
   4. None of these.
3. Total of Equity and Liabilities of the company is ______.
   1. ₹ 42,40,000
   2. ₹ 32,70,000
   3. ₹ 56,95,000
   4. ₹ 37,80,000
4. Total value of Non-current Liabilities in Equity and Liabilities part of Balance Sheet is ______.
   1. ₹ 8,50,000
   2. ₹ 5,50,000
   3. ₹ 9,00,000
   4. ₹ 6,10,000

What are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III?  

Under which major head will the following be shown:

(i) Share Capital; and (ii) Money Received Against Share Warrants?

List any five items that are shown under Reserves and Surplus.

Name the Sub-heads under the head ‘Current Liabilities’ in the Equity and Liabilities part of the Balance Sheet as per Schedule III, Part I of the Companies Act, 2013.

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?

Name the itmes that are shown under Long-term Borrowings.

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. 

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:

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.

Classify the following items under Major heads and Sub-heads (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act 2013:

1. Securities Deposits (More than 12 months);
2. Interest due on Calls-in-Arrears;
3. Balance in Forfeited Shares Account;
4. Capital Work-in-Progress;
5. Loan Repayable on Demand;
6. Cash in Hand.

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

1. Debentures with maturity period in current financial year;
2. Securities Premium;
3. Provident Fund.

Under which heads the following items on the Assets part of the Balance Sheet of a company will be shown:

1. Sundry Debtors
2. Patents and Trademarks
3. Shares in Quoted Companies
4. Advances recoverable in cash
5. Prepaid Insurance and
6. Work-in-Progress?

Under which major headings and sub-headings (if any) will the following items be shown in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013?

1. Calls-in-Advance
2. Loose Tools
3. Outstanding Salaries
4. Accrued Income
5. Prepaid Insurance
6. Unpaid Dividend
7. Capital Work-in-Progress
8. Patents
9. Capital Reserve
10. Current Maturities of Long-term Debts

Under which of the major heads will the following items be shown in the Balance Sheet of a company, as per Schedule III of the Companies Act, 2013:

1. 10% Debentures;
2. Stock-in-Trade;
3. Cash at Bank;
4. Bills Receivable;
5. Goodwill;
6. Loose Tools;
7. Share Application Money Pending Allotment.

Classify the following items under Major Heads and Sub-Heads (if any) in the Balance Sheet of a company as per Schedule III, Part I of the Companies Act, 2013:

1. Accrued Income
2. Capital Advances
3. Capital work-in-progress 

Under which heads will the following items be shown in the Balance Sheet of a company:

1. Bank Balance;
2. Investments (Long-term);
3. Outstanding Salary;
4. Subscribed and paid-up Capital;
5. Bills Payable;
6. Unclaimed Dividends;
7. Shares Option Outstanding Account; and
8. General Reserve;
9. Uncalled Liability on Shares?

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. Bank Overdraft
2. Subsidy Reserve
3. Capital Redemption Reserve
4. Publishing Titles
5. Copyrights and Patents
6. Debit balance in the Statement of Profit & Loss
7. Debenture Redemption Reserve
8. Income Received in Advance

Under which heads are the following 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) Trade Payables payable after 12 months from the date of Balance Sheet?

Classify the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:

1. Loose Tools
2. Provision for Tax
3. Copyrights
4. Capital Work-in-Progress
5. Stores and Spares
6. Public Deposits

How are the following items shown while preparing Balance Sheet of a company:

1. Surplus, i.e., Balance in Statement of Profit and Loss (Dr.);
2. Interest accrued and due on Debentures;
3. Computer Software under development;
4. Interest accrued on Investment
5. Arrears of dividends on Cumulative Preference Shares?

Under which heads and sub-heads are the following items shown in the Balance Sheet of a Company as per Schedule III, Part I of the Companies Act, 2013?

1. Securities Premium
2. Interest accrued and due on secured loans
3. Drafts in Hand
4. Interest accrued but not due
5. Building
6. Brands/Trademarks
7. Sundry Debtors
8. Sundry Creditors
9. Premium on Redemption of Debentures
10. Mastheads and Publishing Title

Prepare Balance Sheet of Recovery Ltd. as per Schedule III of the Companies Act, 2013:

Totalting of Balance Sheet is not required.

From the following information extracted from the books of Howrach Ltd., prepare Balance Sheet of the company as at 31st March, 2026, as per Schedule III of the Companies Act, 2013:

Prepare Balance Sheet of VT Ltd. as at 31st March 2026, from the following information as per Schedule III, Part I of the Companies Act, 2013:

Prepare Balance Sheet of HP Ltd. as at 31st March, 2026 from the following information:

Under which head following revenue items of a non-financial company will be 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?

Where will Purchase of Raw Materials be disclosed in Financial Statement of Company?

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.

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.

Give two examples of Inventory except Raw Materials, Work in Progress, Finished Goods and Stock in Trade.

From the following information of Hospitality Ltd. for the year ended 31st March, 2025, 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 Best Marketing Ltd. for the year ended 31st March, 2025 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.

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.

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.

Prepare Notes to Accounts of Finance Cost of Cosmo Ltd. for the year ended 31st March, 2026:

1. Interest paid on 9% Debentures ₹ 1,50,000;
2. Discount on Issue of Debentures 36,000;
3. Dividend paid ₹ 1,80,000;
4. Bank Charges ₹ 6,000;
5. Interest Received on Fixed Deposits ₹ 70,000;
6. Interest on Bank overdraft 28,000.

Hint: Bank Charges are included in ‘Other Expenses’, and Dividend is paid on shares and not on borrowings. Hence, it is not ‘Finance Cost’.

Where will you disclose the amount of loss on issue of debentures written off out of Statement of Profit and Loss?

From the following information, calculate Total Income, Other Expenses, Total Expenses, Change in Inventory, Profit before Tax and Profit after Tax for the year ended 31st March, 2026 as per Schedule III, Part II of the Companies Act, 2013:

Financial Statements of a company consists of ______.

Which of the following is not the limitation of financial statements?

Interest accrued and due on debentures is shown in a Company’s Balance Sheet under the sub-head ______.

Interest accrued but not due on investment will be shown under which head of Current Assets?

Which of the following is not included in Short-term Borrowings?

In a company’s Balance Sheet, employees’ earned leave payable on retirement is disclosed under ______.

In a company’s balance sheet, the debit balance of the statement of profit & loss is shown under ______.

Assertion (A): Non-current Liabilities are the liabilities which are not Current Liabilities.

Reason (R): Liabilities are of two types, i.e., Non-current Liabilities and Current Liabilities. Liabilities which are payable after 12 months or after the period of Operating Cycle from the date of Balance Sheet are shown as Non-current Liabilities.

In the context of the above two statements, which of the following is correct?

The following information was extracted from the books of Mask Ltd. answer the question (In accordance with the provisions of the Companies Act, 2013):

Computer software under development will be shown under ______ head of the sub-head property, plant and equipment and intangible assets on the assets part of the Balance Sheet.

The following information was extracted from the books of Mask Ltd. answer the question (In accordance with the provisions of the Companies Act, 2013):

Total value of intangible assets that will be shown under the sub-head intangible assets on the assets part of the Balance Sheet is ______.

The following information was extracted from the books of Mask Ltd. answer the question (In accordance with the provisions of the Companies Act, 2013):

Total Long-term Borrowings that will be shown under the head Non-current Liabilities on the Equity and Liabilities part of the Balance Sheet is ______.

The following information was extracted from the books of Mask Ltd. answer the question (In accordance with the provisions of the Companies Act, 2013):

Provision for tax of the company will be shown under the sub-head of the Current Liabilities of the Balance Sheet as ______.

The following information was extracted from the books of Mask Ltd. answer the question (In accordance with the provisions of the Companies Act, 2013):

10% Debentures will be shown under ______ head of the Equity and Liabilities part of the Balance Sheet.

Classify the following items under Major-heads and Sub-heads (if any) in the Balance Sheet of a company as per Schedule IIl of the Companies Act, 2013:

1. Current maturities of Long-term Debts;
2. Building under Construction;
3. Provision for Warranties;
4. Calls-in-Advancе;
5. Capital Advance;
6. Advances recoverable in Cash within the Operating Cycle.

Match the following:

List any three objectives of financial statements.

State two items of ‘Other Incomes’ of the Statement of Profit & Loss.

Revenue earned from the Sale of ‘Stock-in-Trade’ is shown in the Statement of Profit & Loss as ______.