What is meant by 'Financial Statements' of a company?
Concept: Concept of Financial Statements
State the objectives of 'Analysis of Financial Statements'.
Concept: Concept of Financial Statements
Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source 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 statements 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
(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft
Concept: Concept of Financial Statements
Short Answer Question
State the meaning of financial statements?
Concept: Concept of Financial Statements
Long Answer Question
Prepare the format of balance sheet and explain the various elements of balance sheet.
Concept: Concept of Financial Statements
Long Answer Question
Explain the process of preparing income statement and balance sheet.
Concept: Concept of Financial Statements
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 |
Concept: Concept of Financial Statements
From the following information prepare the balance sheet of Gitanjali Ltd., as per the (Revised) Schedule VI:
Inventories Rs. 14,00,000; Equity Share Capital Rs. 20,00,000; Plant and Machinery Rs. 10,00,000; Preference Share Capital Rs. 12,00,000; Debenture Redemption Reserve Rs. 6,00,000; Outstanding Expenses Rs. 3,00,000; Proposed Dividend Rs. 5,00,000; Land and Building Rs. 20,00,000; Current Investments Rs. 8,00,000; Cash Equivalent Rs. 10,00,000; Short term loan from Zaveri Ltd. (A Subsidiary Company of Twilight Ltd.) Rs. 4,00,000; Public Deposits Rs. 12,00,000.
Concept: Concept of Financial Statements
From the following information prepare the balance sheet of Jam Ltd. as per the (revised) Schedule VI:
Inventories Rs. 7,00,000; Equity Share Capital Rs. 16,00,000; Plant and Machinery Rs. 8,00,000; Preference Share Capital Rs. 6,00,000; General Reserves Rs. 6,00,000; Bills payable Rs. 1,50,000; Provision for taxation Rs. 2,50,000; Land and Building Rs. 16,00,000; Noncurrent Investments Rs. 10,00,000; Cash at Bank Rs. 5,00,000;Creditors Rs. 2,00,000; 12% Debentures Rs. 12,00,000.
Concept: Concept of Financial Statements
Prepare the balance sheet of Jyoti Ltd. as at March 31, 2017 from the following information:
Building Rs. 10,00,000; Investments in the shares of Metro Tyers Rs. 3,00,000; Stores & Spares Rs. 1,00,000; Discount on issue of 10% debentures Rs. 10,000; Statement of Profit and Loss (Dr.) Rs. 90,000; 5,00,000 Equity Shares of Rs. 20 each fully paid-up; Capital Redemption Reserve Rs. 1,00,000; 10% Debentures Rs. 3,00,000; Unpaid dividends Rs. 90,000; Share options outstanding account Rs. 10,000.
Concept: Concept of Financial Statements
Brinda Ltd. has furnished the following information:
(a) 25,000, 10% debentures of Rs. 100 each;
(b) Bank Loan of Rs. 10,00,000 repayable after 5 years;
(c) Interest on debentures is yet to be paid.
Show the above items in the balance sheet of the company as at March 31, 2017.
Concept: Concept of Financial Statements
Prepare a balance sheet of Black Swan Ltd., as at March 31, 2017 form the following information:
General Reserve | : | 3,000 |
10% Debentures | : | 3,000 |
Statement of Profit & Loss | : | 1,200 |
Depreciation on fixed assets | : | 700 |
Gross Block | : | 9,000 |
Current Liabilities | : | 2,500 |
Preliminary Expenses | : | 300 |
6% Preference Share Capital | : | 5,000 |
Cash & Cash Equivalents | : | 6,100 |
Concept: Concept of Financial Statements
What are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III?
Concept: Concept of Financial Statements
Under which major head will the following be shown:
(i) Share Capital; and (ii) Money Received Against Share Warrants?
Concept: Concept of Financial Statements
List any five items that are shown under Reserves and Surplus.
Concept: Concept of Financial Statements
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?
Concept: Concept of Financial Statements
Name the itmes that are shown under Long-term Borrowings.
Concept: Concept of Financial Statements
A company has an opening credit balance in Surplus, i.e., Balance in Statement of Profit and Loss of ₹ 1,00,000. During the year, it earned a profit of ₹ 75,000. It decided to transfer ₹ 15,000 to Debentures Redemption Reserve (DRR) and also proposed to pay dividend of ₹ 25,000.
How will be the appropriations shown in the financial statements?
Concept: Concept of Financial Statements
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.
Case | Operating cycle Period (months) | Expected realization period (months) |
1 | 10 | 11 |
2 | 10 | 12 |
3 | 10 | 13 |
4 | 14 | 13 |
5 | 15 | 16 |
Concept: Concept of Financial Statements
State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Calance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:
Case |
Operating Cycle Period (Months) |
Expected Payment Period (Months |
||
1 |
10 |
11 |
||
2 |
10 |
12 |
||
3 | 10 | 13 | ||
4 | 14 | 13 | ||
5 |
15 |
16 |
Concept: Concept of Financial Statements