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T.S. Grewal solutions for Class 12 Accountancy chapter 1 - Financial Statements of a Company

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T.S. Grewal T S Grewal Class 12 Accountancy - Analysis Of Financial Statements

T S Grewal Class 12 Accountancy - Analysis Of Financial Statements - Shaalaa.com

Chapter 1: Financial Statements of a Company

Exercise

Chapter 1: Financial Statements of a Company Exercise Exercise solutions [Pages 64 - 72]

Exercise | Q 1 | Page 64

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

Exercise | Q 2 | Page 64

Under which major head will the following be shown:

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

Exercise | Q 3 | Page 65

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

Exercise | Q 4 | Page 65

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?

Exercise | Q 5 | Page 65

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

Exercise | Q 6 | Page 65

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? 

Exercise | Q 7 | Page 65

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. 

Exercise | Q 8 | Page 65

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

10

11

2

10

12

3 10 13
4 14 13
5

15

16

Exercise | Q 9 | Page 66

Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III:

(i) Calls-in-Arrears;  (ii)  Share Application Money Pending Allotment; (iii) Unpaid Dividend; and (iv) Dividend not paid on Cumulative Preference Shares?

Exercise | Q 10 | Page 66

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 ?

 
Exercise | Q 11 | Page 66

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.

Exercise | Q 12 | Page 66

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

(i) Capital Work-in-Progress:

(ii) Provision for Warranties;

(iii) Income received in Advance; and

(iv) Capital Advances

Exercise | Q 13 | Page 66

Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown:

(i) Intangible Assets; (ii) Intangible Assets under Development; (iii) Investments (more than 12 months); (iv) Deferred Tax Assets (Net); (v) Stores and Spares; and (vi) Loose Tools?

Exercise | Q 14 | Page 67

Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a copany: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash?

Exercise | Q 15 | Page 67

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

(i) Sundry Debtors

(ii) Patents and Trademarks

(iii) Shares in Quoted Companies

(iv) Advances recoverable in cash

(v) Prepaid Insurance and

(vi) Worl-in-Progress (Machinery)?

Exercise | Q 16 | Page 67

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

(i) Unamortised Loss on Issue of Debentures (To be written off after 12 months from the date of Balance Sheet)

(ii) 10% Debentures

(iii) Stock-in-Trade

(iv) Cash at Bank

(v) Bills Receivable

(vi) Goodwill

(vii) Loose Tools

(viii) Truck

(ix)  Provision for Tax; and

(x) Sundry Creditors?

Exercise | Q 17 | Page 67

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

(i) Bank Balance

(ii) Investments (Long-term)

(iii) Outstanding Salary

(iv) Authorised Capital

(v) Bills Payable

(vi) Unclaimed Dividents

(vii) Shares Option Outstanding Account

(viii) General Reserve; and

(ix) Subsidy Reserve?

Exercise | Q 18 | Page 67

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

(i) Calls-in-Arrears

(ii) Commission Received in Advance

(iii) Debentures

(iv) Stores and Spare Parts

(v) Land and Building

(vi) Forfeited Shares Account?

Exercise | Q 19 | Page 68

Under which heads the following are 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?

Exercise | Q 20 | Page 68

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

(i) Loose Tools

(ii) Unpaid Dividend

(iii) Copyrights and Patents.

(iv) Land and Building

Exercise | Q 21 | Page 68

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

(i) Provision for Tax

(ii) Loan payable on demand

(iii) Computer and related equipment

(iv) Goods acquired for trading

Exercise | Q 22 | Page 68

Under which major headings and sub-headings the following items will be shown in the Balance Sheet of a company as per schedule III of Companies Act, 2013?

(i) Provision for Employee Benefits.
(ii) Calls-in-Advance.

Exercise | Q 23 | Page 68

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

(i) Surplus, i.e., Balance in Statement of Profit and Loss (Dr.);
(ii) Interest accrued and due on Debentures;
(iii) Computer Software under development;
(iv) Interest accrued on Investment? 

Exercise | Q 24 | Page 68

Hero Ltd. has raised following long-term loans on 1st April, 2018:

10,000; 10% Debentures of ₹ 100 each redeemable in four equal yearly 
installments beginning 1st July, 2019 10,00,000
11% Bank Loan from SBI repayable after 5 years 20,00,000
Interest on Debentures and Bank Loan has not yet been paid.  

How will be the above items shown in the Balance Sheet of the company as at 31st March, 2019?

Exercise | Q 25 | Page 69
Prepare Balance Sheet of the Company as per Schedule III of the Companies Act, 2013:
10% Debentures of ₹ 100 each 1,90,000
Stock-in-Trade (inventories) 40,000
Goodwill  20,000
Provision for Tax 60,000

Totalling of Balance Sheet is not required

Exercise | Q 26 | Page 69

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
Exercise | Q 27 | Page 69

From the following information extracted from the books of Howrach Ltd., prepare Balance Sheet of the company as at 31st March, 2019 as per Schedule III of the Companies Act, 2013:

  (₹ in '000)   (₹ in '000)
Long-term Borrowings 1,000  Fixed Assets (Tangible) 1,600
Trade Payable 60  Inventories 40
Share Capital 800  Trade Receivables 160
Reserves and Surplus 180  Cash and Cash Equivalents 240
Exercise | Q 28 | Page 69

Prepare Balance Sheet of HP Ltd. as at 31st March, 2019 from the following information:

     
Equity Share Capital 20,00,000   Surplus, i.e., Balance in Statement of Profit and Loss (Cr.) 3,00,000
12% Preference Share Capital 10,00,000   Stock 6,00,000
Fixed Assets (At cost) 46,60,000   Sundry Debtors 8,00,000
Accumulated Depreciation 16,60,000   Cash 1,50,000
Investments 4,00,000   Loans and Advances 50,000
Current Liabilities 8,00,000    Provision for Taxation 2,00,000
12% Debentures 6,00,000   Workmen Compensation Reserve 1,00,000
Exercise | Q 29 | Page 69

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

Exercise | Q 30 | Page 70

Under which head following revenue items of a financial company will be classified or shown:
(i) Gain (Profit) on Sale of Building;

(ii) Revenue from Project Consultancy Rendered;

(iii) Sale of Scrap;

(iv) Interest earned on Loans; and

(v) Gain (Profit) on sale of Investments?

Exercise | Q 31 | Page 70

Under which head following revenue items of non-financial company will be classified or shown:

(i) Gain (Profit) on Sale of Fixed Asset;

(ii) Fee Received for Arranging Loans;

(iii) Interest on Loans Given;

(iv) Gain (Profit) on Sale of Investments and

(v) Sale of Miscellaneous Items?

Exercise | Q 32 | Page 70

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.

Exercise | Q 33 | Page 70

Calculate Cost of Materials Consumed from the following:

Opening Inventory of Materials ₹2,50,000; Finished Goods ₹1,00,000; Closing Inventory of Materials ₹2,25,000; Finished Goods ₹75,000; Raw Material purchased during the year ₹15,00,000.

Exercise | Q 34 | Page 70

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.

Exercise | Q 35 | Page 70

From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods ₹2,00,000 and ₹1,75,000 respectively.

Exercise | Q 36 | Page 70

From the following information, calculate Change in Inventory of Finished Goods: Opening Inventory and Closing Inventory of Finished Goods ₹2,50,000 and ₹2,00,000 respectively.

Exercise | Q 37 | Page 70

From the following information, calculate Change in Inventory of Work-in-Progress: Opening and Closing Work-in-Progress ₹1,00,000 and ₹1,15,000 respectively.

Exercise | Q 38 | Page 70

From the following information, calculate Change in Inventory of Work-in-Progress:

Opening and Closing Work-in-Progress ₹1,50,000 and ₹1,45,000 respectively.

Exercise | Q 39 | Page 70

From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,50,000 respectively.

Exercise | Q 40 | Page 70

From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,00,000 respectively.

Exercise | Q 41 | Page 71

From the following information of Hospitality Ltd. for the year ended 31st March, 2018, calculate amount that will be shown in the Note to Accounts on Changes in inventiories of Finished Goods, WIP  and stock-in-Trade:

Particluars

Opening Inventory (₹)

Closing inventory(₹)

Finished Goods

5,00,000

5,50,000

Work-in-Progress

4,50,000 

4,25,000

Stock-in-Trade 6,50,000 6,00,000
Exercise | Q 42 | Page 71

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.

Exercise | Q 43 | Page 71

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.

Exercise | Q 44 | Page 71

Out of the Following, identify the items that are shown in the Note to Accounts on Finance Costs:
(i) Interest paid on Borrowing from prince Finance Ltd.;
(ii) Interest paid on Term Loan to Bank;
(iii) Interest paid on Public Deposits;
(iv) Loss on Issue of Debentures Written off; and
(v) Bank Charges.

Exercise | Q 45 | Page 71

From the following information, prepare Note to Accounts on Finance Costs: Interest paid to Bank ₹ 75,000; Interest on Debentures ₹ 58,000; Loss on issue of Debentures written off ₹ 27,500; and Commitment Charges ₹ 15,000.

Exercise | Q 46 | Page 71

From the following information of Best Marketing Ltd. for the year ended 31st March, 2019 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.

Exercise | Q 47 | Page 72

Identify which of the following items will be shown in the Note to Accounts on Other Expenses?

(i) Salaries;

(ii) Postage Expenses;

(iii) Telephone and Internet Expenses;

(iv) Rent for warehouse;

(v) Carriage Inwards;

(vi) Depreciation on computers;

(vii) Computer Software amortised;

(viii) Computer Hiring Charges;

(ix) Audit fee;

(x) Bonus.

Exercise | Q 48 | Page 72

Under which line item (major head) of the Statement of Profit and Loss of non-financial company will the following be shown:
(i) Sale of Goods;

(ii) Revenue from Services Rendered;

(iii) Interest Earned;

(iv) Gain (Profit) on Sale of Assets;

(v) Purchases of Stock-in-Trade;

(vi) Salaries and Wages;

(vii) Interest paid to Bank;

(viii) Carriage Outward?

Exercise | Q 49 | Page 72

Under which line item (major head) of the Statement of Profit and Loss of a financial company will the following be shown:
(i) Interest on Loans Given:

(ii) Gain (Profit) on Sale of Securities;

(iii) Loss on Sale of Fixed Assets;

(iv) Interest paid on Deposits;

(v) Depreciation on Computers;

(vi) Goodwill Written off;

(vii) Commission paid for Deposit Mobilisation; and

(viii) Repairs Expenses?

Exercise | Q 50 | Page 72

Under which line item of the financial statements following items will be shown:
(i) Sales;

(ii) Loss on Sale of Vehicle;

(iii) Debentures;

(iv) Unamortised Loss on Issue of Debentures (to be written off within 12 months of the date of Balance Sheet);

(v) Encashable Leave Payable at the Time of Retirement;

(vi) Tax Reserve;

(vii) Carriage on Purchases of Stock-in-Trade; and

(viii) Telephone and Internet Expenses?

Exercise | Q 51 | Page 72

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:
(i) Capital Reserve;
(ii) Calls-in-Advance;
(iii) Loose Tools; and
(iv) Bank overdraft.

Chapter 1: Financial Statements of a Company

Exercise

T.S. Grewal T S Grewal Class 12 Accountancy - Analysis Of Financial Statements

T S Grewal Class 12 Accountancy - Analysis Of Financial Statements - Shaalaa.com

Textbook solutions for Class 12






















T.S. Grewal solutions for Class 12 Accountancy chapter 1 - Financial Statements of a Company

T.S. Grewal solutions for Class 12 Accountancy chapter 1 (Financial Statements of a Company) 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 T S Grewal Class 12 Accountancy - Analysis Of Financial Statements solutions in a manner that help students grasp basic concepts better and faster.

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Concepts covered in Class 12 Accountancy chapter 1 Financial Statements of a Company are Concept of Financial Statements, Nature of Financial Statements, Role and Objectives of Financial Management, Types of Financial Statements, Uses and Importance of Financial Statements, Limitations of Financial Statements.

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