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NCERT solutions for Class 12 Accountancy chapter 4 - Analysis of Financial Statements

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NCERT Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements

Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Shaalaa.com

Chapter 4: Analysis of Financial Statements

Short Answer QuestionsLong Answer QuestionsNumerical Questions

NCERT solutions for Class 12 Accountancy Chapter 4 Exercise Short Answer Questions [Page 184]

Short Answer Questions | Q 1 | Page 184

List the techniques of Financial Statement Analysis.

Short Answer Questions | Q 2 | Page 184

Distinguish between Vertical and Horizontal Analysis of financial data.

Short Answer Questions | Q 3 | Page 184

State the meaning of Analysis and Interpretation.

Short Answer Questions | Q 4 | Page 184

State the importance of Financial Analysis?

Short Answer Questions | Q 5 | Page 184

What are Comparative Financial Statements?

Short Answer Questions | Q 6 | Page 184

What do you mean by Common Size Statements?

NCERT solutions for Class 12 Accountancy Chapter 4 Exercise Long Answer Questions [Page 184]

Long Answer Questions | Q 1 | Page 184

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

Long Answer Questions | Q 2 | Page 184

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

Long Answer Questions | Q 3 | Page 184

What is the importance of comparative statements? Illustrate your answer with particular reference to comparative income statement.

Long Answer Questions | Q 4 | Page 184

What do you understand by analysis and interpretation of financial statements? Discuss its importance.

Long Answer Questions | Q 5 | Page 184

Explain how common size statements are prepared giving an example.

NCERT solutions for Class 12 Accountancy Chapter 4 Exercise Numerical Questions [Pages 184 - 187]

Numerical Questions | Q 1 | Page 184

Following are the balance sheets of Alpha Ltd. as at March 31st, 2016 and 2017:

Following are the balance sheets of Alpha Ltd. as at March 31st, 2016 and 2017:

Particulars 2016
Rs.
2017
Rs.
I. Equity and Liabilities

 

 

Equity share capital

2,00,000 4,00,000

Reserves and surplus

1,00,000 1,50,000

Long-term borrowings

2,00,000 3,00,000

Short-term borrowings

50,000 70,000

Trade payables

30,000 60,000

Short-term provisions

20,000 10,000

Other current liabilities

20,000 30,000
Total 6,20,000 10,20,000
II. Assets    

Fixed assets

2,00,000 5,00,000

Non-current investments

1,00,000 1,25,000

Current investments

60,000 80,000

Inventories

1,35,000 1,55,000

Trade receivables

60,000 90,000

Short term loans and advances

40,000 60,000

Cash at bank

25,000 10,000
Total 6,20,000 10,20,000

You are required to prepare a Comparative Balance Sheet.

Numerical Questions | Q 2 | Page 185

Following are the balance sheets of Beta Ltd. at March 31st, 2016 and 2017:

Particulars 2017
Rs.
2016
Rs.
I. Equity and Liabilities

 

 

Equity share capital

4,00,000 3,00,000

Reserves and surplus

1,50,000 1,00,000

Loan from IDBI

3,00,000 1,00,000

Short-term borrowings

70,000 50,000

Trade payables

60,000 30,000

Short-term provisions

10,000 20,000

Other current liabilities

1,10,000 1,00,000
Total 11,00,000 7,00,000
II. Assets

 

 

Fixed assets

4,00,000 2,20,000

Non-current investments

2,25,000 1,00,000

Current investments

80,000 60,000

Stock

1,05,000 90,000

Trade receivables

90,000 60,000

Short term loans and advances

1,00,000 85,000

Cash and cash equivalents

1,00,000 85,000
Total 11,00,000 7,00,000

You are required to prepare a Comparative Balance Sheet.

Numerical Questions | Q 3 | Page 185

Prepare Comparative Income Statement from the following information:

Particulars 2016-17
Rs.
2015-16
Rs.
Freight Outward 20,000 10,000
Wages (office) 10,000 5,000
Manufacturing Expenses 50,000 20,000
Stock adjustment (60,000) 30,000
Cash purchases  80,000 60,000
Credit purchases  60,000 20,000
Returns inward  8,000 4,000
Gross profit (30,000) 90,000
Carriage outward 20,000 10,000
Machinery 3,00,000 2,00,000
Charge 10% depreciation on machinery 10,000 5,000
Interest on short-term loans 20,000 20,000
10% debentures 20,000 10,000
Profit on sale of furniture 20,000 10,000
Loss on sale of office car 90,000 60,000
Tax rate 40% 50%
Numerical Questions | Q 4 | Page 186

Prepare Comparative Income Statement from the following information:

Particulars 2015-16
Rs.
2016-17
Rs.
Manufacturing expenses 35,000 80,000
Opening stock 30,000 60% of closing stock
Sales 9,60,000 4,50,000
Returns outward 4,000 (out of credit purchase) 6,000 (out of cash purchase)
Closing stock 150% of opening stock 1,00,000
Credit purchases 1,50,000 150% of cash purchase
Cash purchases 80% of credit purchases 40,000
Carriage outward 10,000 30,000
Building 1,00,000 2,00,000
Depreciation on building 20% 10%
Interest on bank overdraft 5,000 -
10% debentures 2,00,000 20,00,000*
Profit on sale of copyright 10,000 20,000
Loss on sale of personal car 10,000 20,000
Other operating expenses 20,000 10,000
Tax rate 50% 40%

*There is a misprint in the book, this should be 2,00,000

Numerical Questions | Q 5 | Page 187

Prepare a Common size statement of profit and loss of Shefali Ltd. with the help of following information:

Particulars 2015-16
(Rs)
2016-17
(Rs)
Revenue from operations  6,00,000 8,00,000
Indirect expense  25% of gross profit 25% of gross profit
Cost of revenue from operations  4,28,000 7,28,000
Other incomes 10,000 12,000
Income tax 30%  30%
Numerical Questions | Q 6 | Page 187

Prepare a Common Size balance sheet from the following balance sheet of Aditya Ltd. and Anjali Ltd.:

Particulars Aditya Ltd.
Rs.
Anjali Ltd.
Rs.
I. Equity and Liabilities    

a) Equity share capital

6,00,000 8,00,000

b) Reserves and surplus

3,00,000 2,50,000

c) Current liabilities

1,00,000 1,50,000
Total 10,00,000 12,00,000
II. Assets    

a) Fixed assets

 4,00,000 7,00,000

b) Current assets

 6,00,000 5,00,000
Total 1,00,0000* 12,00,000

*The total of Liabilities side must be equal to the total of Assets side, therefore, it should be 10,00,000.

Chapter 4: Analysis of Financial Statements

Short Answer QuestionsLong Answer QuestionsNumerical Questions

NCERT Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements

Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Shaalaa.com

NCERT solutions for Class 12 Accountancy chapter 4 - Analysis of Financial Statements

NCERT solutions for Class 12 Accountancy chapter 4 (Analysis of Financial Statements) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the CBSE Ncert Class 12 Accountancy - Company Accounts and Analysis of Financial Statements solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. NCERT textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Class 12 Accountancy chapter 4 Analysis of Financial Statements are Meaning of Analysis of Financial Statements, Significance of Analysis of Financial Statements, Objectives of Analysis of Financial Statements, Tools of Analysis of Financial Statements, Comparative Statements, Common Size Statements, Limitations of Financial Analysis.

Using NCERT Class 12 solutions Analysis of Financial Statements exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in NCERT Solutions are important questions that can be asked in the final exam. Maximum students of CBSE Class 12 prefer NCERT Textbook Solutions to score more in exam.

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