Class 12th Accountancy 2017 Set3 Delhi Board Paper Solution
Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organizations operate. These statements are the sources 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 statement 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.
General Reserves, short term loans and advances, Capital work in progress and design.
Values that a company should observe while preparing its financial statements are:
1) Financial statements should be prepared by following the accounting concepts, principles and procedures.
2) Providing authenticated information to users.
3) Financial statements should be prepared by following code of conduct and ethical and legal framework.
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:
| Item | Main Heading | Sub Heading |
| General Reserves | Shareholder's Fund | Reserve and Surplus |
| Short term loans and advances | Current Assets | |
| Capital work in progress | Non Current Assets | Fixed Assets |
| Design | Non Current Assets | Fixed Assets/ Intangible Assets |
Popular Questions of Class 12th accountancy
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What is Capital Fund? How is it calculated?
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What is sacrificing ratio? Why is it calculated?
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If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
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Why there is need for the revaluation of assets and liabilities on the admission of a partner?
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What is subscription? How is it calculated?
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List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating. - Q:-
Why is Profit and Loss Adjustment Account prepared? Explain.
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If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
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Why it is considered desirable to make the partnership agreement in writing.
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On what occasions sacrificing ratio is used?
Recently Viewed Questions of Class 12th accountancy
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Raju and Jai commenced business in partnership on April 1, 2017. No partnership agreement was made whether oral or written. They contributed Rs. 4,00,000 and Rs. 1,00,000 respectively as capitals. In addtion, Raju advanced Rs. 2,00,000 as loan to the firm on October 1, 2017. Raju met with an accident on July 1, 2017 and could not attend the business up to september 30, 2017. The profit for the year ended March 31, 2018 amounted to Rs, 50,600. Disputes have arisen between them on sharing the profits of the firm.
Raju Claims:
(i) He should be given interest at 10% p.a. on capital and so also on loan.
(ii) Profit should be distributed in the proportion of capitals.Jai Claims:
(i) Net profit should be shared equally.
(ii) He should be allowed remuneration of Rs, 1,000 p.a. during the period of Raju’s illness.
(iii) Interest on capital and loan should be given @ 6% p.a.
State the correct position on each issue as per the provisions of the Partnership Act. 1932. - Q:-
State the difference between dissolution of partnership and dissolution of partnership firm.
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What is a Realisation Account?
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Distinguish between firm’s debts and partner’s private debts.
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What is sacrificing ratio? Why is it calculated?
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Define Partnership Deed.
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What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?
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Why is Profit and Loss Adjustment Account prepared? Explain.
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How will you deal with a change in profit sharing ratio among existing partners? Take imaginary figures to illustrate your answer?
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State the meaning of Income and Expenditure Account.