NCERT Books Solutions for Class 12 Accountancy Chapter 8 Financial Statements of A Company
NCERT Solutions offer a broad variety of definitions and introduction to the topic for Class 12 Accounts, which includes all the questions provided in the NCERT books.
Financial Statements Of A Company Class 12 NCERT Solutions has been provided to ace up your preparation. Access and use the direct links available for Chapterwise Class 12 NCERT Solutions whenever you want. The detailed approach used to explain the NCERT Solutions of the 12th Std Accounts makes it easy for you to understand the concepts behind them.
NCERT Solutions for Class 12 Accountancy Chapter 8 is a very good and helpful resource for preparing for the exam. Takshila Learning provides a huge number of NCERT problems and for Financial Statements of a Company Class 12 solutions and notes to its students. CBSE Class 12 Accountancy NCERT Solutions are designed by experts to make sure that students are prepared for a successful study period in Accounts. The CBSE guidelines are always followed when creating the solutions for questions in the NCERT Books.
NCERT solutions for Class 12 Accountancy Financial statements of a Company provides us with the required information on all the concepts. Since students in class 12 must learn the fundamentals of every topic, this class 12 solutions are a detailed study guide that clearly explains the concepts. At any time, you can access and use the direct links for Class 12 NCERT Solutions for every Chapter. The NCERT Solutions for 12th Grade Accounts use a step-by-step approach to clarify the principles, making them easy to understand.
NCERT Solutions for Class 12 Accounts includes all the questions contained in the NCERT books, as well as a variety of meanings and introduction to the topic.
Questions Covered In Financial Statements of A Company Class 12 Solutions
Question 1 : State the meaning of financial statements?
Question 2 : What are limitations of financial statements?
Question 3 : List any three objectives of financial statements?
Question 4 : State the importance of financial statements to
Question 5 : How will you disclose the following items in the Balance Sheet of a company:
(i) Loose Tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures Redemption Reserve
(iv) Mastheads and publishing titles
(v) 10% debentures
(vi) Proposed dividends
(vii) Share forfeited account
(viii) Capital Redemption Reserve
(ix) Mining Rights
Question 6 : Explain the nature of the financial statements.
Question 7 : Explain in detail about the significance of the financial statements.
Question 8 : Explain the limitations of financial statements.
Question 9 : Prepare the format of statement of Profit and Loss and explain its items.
Question 10 : Prepare the format of balance sheet and explain the various elements of balance sheet.
Question 11 : Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?
Question 12 : `Financial statements reflect a combination of recorded facts, accounting conventions and personal judgments’ discuss.
Question 13 : Explain the process of preparing income statement and balance sheet.
Question 14 : 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
Question 15 : On 1st Aril, 2017, Jumbo Ltd. issued 10,000; 12% debentures of Rs. 100 each a discount of 20%, redeemable after 5 years. The company decided to write-off discount on issue of such debentures over the life time of the Debentures. Show the items in the balance sheet of the company immediately after the issue of these debentures.
Question 16 : 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.
Question 17 : 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.
Question 18 : 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.
Question 19 : 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.
Question 20 : 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
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Questions And Answers NCERT Solutions for Class 12 Accountancy Chapter 8 Financial Statements of A Company
1) What is the meaning of financial statements?
Answer: Financial Statements are reports that detail the financial details of a company over time, such as assets, liabilities, equities, incomes and expenditures, shareholders’ contributions, cash flow, and other related information.
2) What are limitations of financial statements?
Answer: The limitations of financial statements are:
The original price of the goods or the price at which they were purchased are reflected in financial statements. It fails to depict the actual selling price of goods as well as inflated prices as a result of increasing inflation. As a result, data and knowledge are by definition historical.
The qualitative aspects of any transaction, such as scale, colour, consistency, and capabilities, are not depicted in financial statements. Only quantitative data with a monetary value is taken into account.
- It becomes impossible to evaluate the results of another organisation when financial statements are skewed by human intervention.
- Forecasting would be difficult because the statement is focused on historical data.
3) List any three objectives of financial statements?
Answer: The objectives of preparing financial statements are:
Periodically, a financial statement offers timely and reliable information on a company’s economic position. It also makes data accessible to external users or stakeholders who do not have direct access to the data.
A financial statement aids in exposing a company’s true financial status. It provides details about a company’s liquidity, profitability, financial viability, and solvency.
A financial statement is useful in determining a company’s earning potential.
4) State the importance of financial statements to:
Answer:: Following are the importance of financial statements for:
Shareholders: A financial statement will assist a shareholder in assessing a company’s profitability and benefit potential. It provides ample data for companies to analyse their financial health and success.
Creditors: A financial statement is needed for a borrower to recognise the business’s credit worthiness as well as liquidity. It assists them in determining whether further investments in this sector are feasible.
Government: A financial statement assists the government in evaluating GDP, national income, industrial development, and other factors that influence the formulation of policies and the resolution of issues such as poverty and unemployment.
Investors: A financial statement is required for investors who have invested or intend to invest. The financial statement is useful in assessing the prospects and profitability of new investments.
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