GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

   

Gujarat Board GSEB Textbook Solutions Class 12 Commerce Accounts Part 2 Chapter 3 Company Final Accounts Textbook Exercise Questions and Answers.

Gujarat Board Textbook Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

GSEB Class 12 Accounts Company Final Accounts Text Book Questions and Answers

1. Select the correct option for each question :

Question 1.
Financial statements of a company includes ……………………. .
(A) statement of profit and loss and balance sheet
(B) cash flow statement and statement showing changes in equity
(C) notes to the accounts
(D) all of above
Answer:
(D) all of above

Question 2.
It is compulsory to prepare statement of profit and loss and balance sheet in ………………… form as per schedule III of Companies Act, 2013.
(A) horizontal or T,
(B) vertical
(C) statement of profit and loss is horizontal and balance sheet vertical
(D) statement of profit and loss is vertical and balance sheet horizontal
Answer:
(B) vertical

Question 3.
…………………………… is/are compulsory to prepare in specified form as per schedule III of Companies Act, 2013.
(A) Balance sheet
(B) Statement of profit and loss
(C) Balance sheet and statement of profit and loss both
(D) Neither balance sheet nor statement of profit and loss
Answer:
(C) Balance sheet and statement of profit and loss both

Question 4.
For ……………………………… it is compulsory to prepare statement of profit and loss and balance sheet in specified vertical form.
(A) sole proprietorship
(B) partnership
(C) all companies
(D) companies except insurance company, electricity company and banking company
Answer:
(D) companies except insurance company, electricity company and banking company.

GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

Question 5.
Balance sheet is prepared …………………….. while statement of profit and loss is prepared
(A) for a particular accounting period, as at particular date
(B) as at particular date, for a particular accounting period
(C) as at particular date, as at particular date
(D) for a particular accounting period, for a particular accounting period
Answer:
(B) as at particular date, for a particular accounting period

Question 6.
…………………. shows financial position of a company while ………………………. shows financial performance of a company.
(A) Statement of profit and loss, cash flow statement
(B) Balance sheet, cash flow statement
(C) Statement of profit and loss, balance sheet
(D) Balance sheet, statement of profit and loss
Answer:
(D) Balance sheet, statement of profit and loss

Question 7.
Assets and liabilities of a company are classified into …………….. and ………… as per Companies Act, 2013.
(A) current, fixed
(B) fixed, fixed
(C) for short-term, for long-term
(D) current, non-current
Answer:
(D) current, non-current

Question 8.
……………………. assets is considered as current asset.
(A) Convertible into cash during 12 months after the date of balance sheet
(B) Realisable during 12 months after the date of balance sheet
(C) Consumable within 12 months after the date of balance sheet
(D) All of above.
Answer:
(D) All of above.

Question 9.
A machine to be sold during 12 months after the date of balance sheet is considered as ……………………. as per Companies Act, 2013.
(A) fixed asset
(B) non-current asset
(C) current asset
(D) expense
Answer:
(C) current asset

GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

2. Answer in two or three sentences :

Question 1.
What is financial statements?
Answer:
Financial statements are statements presenting accounting information in brief at the end of accounting process for an accounting period.

Question 2.
What is included in the financial statements?
Answer:
As per section-2(40) of the Companies Act 2013, ‘Financial statement’ in relation to company includes –

  • A balance sheet as at the end of the financial year.
  • A profit and loss account or in case of a entity carrying on any activity not for profit, an income and expenditure account for the financial year.
  • Cash flow statement for the financial year.
  • A statement of changes in equity, if applicable.
  • Notes related to the accounts.

Question 3.
State characteristics of financial statements.
Answer:
Following are some of the characteristics of financial statements :

  • Financial statements are called historical statements as they are related to past period.
  • Figures stated in financial statements are expressed in terms of money.
  • Financial statements are based on recorded facts.
  • Profit and loss accounts shows profit or loss for a given period.
  • Balance sheet gives an idea about the financial position of a company.
  • Financial statements are prepared based on generally accepted accounting principles.

GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

Question 4.
State objectives of preparing financial statements.
Answer:
Following are some of the objectives of preparation of financial statements :

  • To know about true and fair view of financial performance of a company.
  • To know the true and fair view of financial position of a company.
  • To comply with legal requirements.
  • To communicate financial information of the company to various interested parties.

Question 5.
State main headings of equity and liabilities side of balance sheet as per schedule-III of Companies Act, 2013.
Answer:
Following are the main headings :

  • Shareholder’s funds,
  • Non-current liabilities,
  • Current liabilities.

Question 6.
Show the classification of non-current liabilities.
Answer:
Classification of non-current liabilities :

  • Long-term borrowings,
  • Other long-term liabilities,
  • Long-term provisions.

Question 7.
Show the classification of current liabilities as per schedule III of Companies Act, 2013.
Answer:
Classification of current liabilities :

  • Short-term borrowings,
  • Trade payables,
  • Other current liabilities,
  • Short-term provisions.

Question 8.
What is current assets and non-current assets?
Answer:
1. Current Assets: An asset shall be classified as current asset if it satisfies any of the following criteria :

  • When it is expected to be realised in or is intended for sale or consumption in the company’s normal operating cycle.
  • If it is held primarily for the ‘ purpose of being traded
  • If it is expected to be realised within 12 months after the reporting date.

2. Non-current Assets: Assets other than current assets are classified as non-current asset.

Question 9.
What is current liability and non-current liability?
Answer:
1. Current Liability: A liability shall be classified as current if it satisfies any of the following criteria :

  • If it is expected to be settled in the company’s normal operating cycle.
  • If it is held primarily for the purpose being traded
  • If it is due to be settled withing twelve months after the reporting date.

2. Non-current Liability: All other liabilities except current liabilities are classified as non-current liabilities.

Question 10.
Show the classification of current assets as per schedule-III of Companies Act 2013.
Answer:
Classification of current assets :

  • Current investments
  • Inventories
  • Trade receivables
  • Cash and cash equivalents
  • Short term loans and advances.

GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

Question 3.
How will you show following balances in the balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Creditors
(2) Security premium
(3) Bond
(4) Goodwill
(5) Bank overdraft
(6) Bills receivables
(7) Equity share capital
(8) Copyrights
(9) Debenture discount (To be written off during next year)
(10) Calls in advance
(11) Cash
(12) Provident fund
(13) Debentures
(14) Trademark
(15) Loose Tools
(16) Loan (Payable during next year)
(17) Bills payable
(18) General reserve
(19) Public deposit
(20) Debtors
(21) Patents
(22) Calls in arrears
(23) Debenture redemption fund
(24) Stores and loose Tools
(25) Licences
(26) Closing stock
(27) Bank balance
(28) Surplus as per statement of profit and loss
(29) Deposit in electricity company
(30) Premium on redemption of preference share
Answer:
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 1
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 2
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 3

Question 4.
Following balances are taken from the books of Seema Ltd. on 31-3-2017. Prepare statement indicating assets of balance sheet as at 31-3-2017 as per schedule-III of Companies Act, 2013.

Balance (₹)
(1) Current investments 12,000
(2) Short-term loans and advances 16,000
(3) Other current assets 7,200
(4) Fixed assets – tangible 5,60,000
(5) Cash and cash equivalents 14,000
(6) Inventory 46,000
(7) Trade receivables 15,800
(8) Other non-current assets 18,000
(9) Non-current investments 26,000
(10) Fixed assets – intangible 1,20,000
(11) Long-term loans and advances 22,000

Answer:
Balance sheet of Seema Limited as at 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 4

Question 5.
Following balances are taken from the books of Yuva Ltd. on 31-3-2017. Prepare statement indicating equity and liabilities of balance sheet as at 31-3-2017 as per schedule-III of Companies Act, 2013.

Balance (₹)
(1) 1,30,000 equity shares of ₹ 5 each 6,50,000
(2) General reserve 70,000
(3) Provident fund 3,60,000
(4) Creditors 86,000
(5) Public deposit 3,26,000
(6) Outstanding rent 13,000
(7) Provision for tax 68,000
(8) Other long-term liabilities 15,000
(9) Temporary loan (Credit balance) 12,000

Answer:
Balance sheet of Yuva limited as at 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 5

GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

Question 6.
Following balance are taken from the books of Moon Ltd. Prepare balance sheet as on 31-3-2017 as per schedule-III of Companies Act, 2013.

Balance (₹)
(1) Interest accrued 30,000
(2) Plant-machinery 15,00,000
(3) Equity share capital 15,00,000
(4) Bank balance and cash 67,500
(5) General reserve 30,000
(6) Closing stock 2,70,000
(7) Creditors 6,00,000
(8) Debtors 3,45,000
(9) Provision for tax 90,000
(10) 12% bank loan 1,95,000
(11) Non-current investments 45,000
(12) Electricity deposit 1,87,500
(13) Provident fund 30,000

Answer:
Balance sheet of Moon Limited as at 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 6
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 7

Question 7.
Under which head, will you show the following balances of profit and loss as per schedule III of Companies Act, 2013?
(1) Sales
(2) Salary
(3) Depreciation
(4) Bad debt recovered
(5) Debenture interest paid
(6) Audit fee
(7) Income of scrap
(8) Profit on sale of asset
(9) Advertisement expenses
(10) Contribution to provident fund
(11) Interest on bank overdraft
(12) Bank charges
(13) Bonus to employees
(14) Debenture discount written off
Answer:

Particulars Head of Profit and Loss Statement
(1) Sales Revenue from operation
(2) Salary Employees benefit expenses
(3) Depreciation Depreciation and amortized expenses
(4) Bad debt recevered Other income
(5) Debenture interest paid Financial cost (expense)
(6) Audit fee Other expense
(7) Income of scrap Other income
(8) Profit on sale of asset Other income
(9) Advertisement expenses Other income
(10) Contribution to provident fund Employees benefit expense
(11) Interest on bank overdraft Financial cost (expense)
(12) Bank charges Other expense
(13) Bonus to employees Employees benefit expense
(14) Debenture discount written off Depreciations and amorized expense

Question 8.
Following balance is taken from the books of Patel Ltd. Prepare statement of profit and loss for the year ending 31-3-2017 as per schedule-III of Companies Act, 2013.

Balance (₹)
(1) Sales of scrap 10,500
(2) Cost of material consumed 1,87,500
(3) Salary 78,000
(4) Interest paid 9,000
(5) Sales 3,81,000
(6) Change in stock of finished goods 12,000
(7) Office and administration expenses 15,600
(8) Depreciation 84,000
(9) Provision for tax on profit is 30%

Answer:
Statement of Profit and Loss for the year ended on 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 8

Question 9.
Following is the balance sheet of Keyur Ltd. as on 31-3-2017 :

Particulars Debit (₹) Credit (₹)
Equity share capital 2,40,000
Office and sales expenses 24,000
Purchase 4,26,000 1,20,000
10% Debenture 9,60,000
Sales
Software 1,20,000
Wages 24,000
Debenture Interest 12,000
Salary 3,00,000
Bank overdraft 14,400
land-building 2,28,000
Opening stock 36000
Discount received 15,600
Debtors 1,80,000
13,50,000 13,50,000

Other information :
(1) Closing stock ₹ 42,000
(2) Make provision for tax at 50 % of net profit.
From the above information, prepare final accounts of the company for the year ending on 31st March, 2017 as per schedule-III and Companies Act, 2013. Notes to the accounts are not required.
Answer:
Statement of Profit and Loss of Keyur Limited for the year ending on 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 9

GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts

Question 10.
Following is the trial balance of Parth Ltd. as on 31-3-2017 :

Particulars Debit (₹) Credit (₹)
Sales 11,25,000
Employee benefit expenses 1,95,000
Inventories 1,65,000
Finance costs 26250
Security premium 60,000
Fixed assets – tangible 12,00,000
Trade payables 90,000
Equity share capital 7,50,000
Trade receivables 60,000
Other income 30,000
Long-term borrowings 5,25,000
Cash and bank balance 90,000
Depreciation 33,750
Cost of goods sold 6,00,000
Non-current investments 2,10,000
25,80,000 25,80,000

From the above information, prepare final accounts of the company for the year ended on 31-3-2017 as per schedule-III of Companies Act, 2013. Notes to the accounts are not required.
Answer:
Statement of Profit and Loss for Parth Limited for the year ending on 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 11
Balance sheet of Parth Limited as on 31-3-2017
GSEB Solutions Class 12 Accounts Part 2 Chapter 3 Company Final Accounts 12

 

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