Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Financial Statements of a Company NCERT Solutions | Prepare the format of balance sheet and

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 dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors

Prepare the format of statement of profit and loss and explain its items.

Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?

Explain the process of preparing income statement and balance sheet.

List any three objectives of analysing financial statements?

State the meaning of financial statement analysis?

Explain the limitations of financial statements.

Explain the nature of the financial statements.

‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.

What do you mean by Ratio Analysis?

List the techniques of Financial Statement Analysis.

What does a Bearer Debenture mean?

What are various types of ratios?

Distinguish between Vertical and Horizontal Analysis of financial data.

State the meaning of ‘Debentures issued as a collateral security’.

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

State the meaning of Analysis and Interpretation.

What is meant by ‘Issue of debentures for consideration other than cash’?

What is meant by ‘Mortgaged Debentures’?

How would you study the Solvency position of the firm?

What do you mean by Ratio Analysis?

What is discount on issue of debentures?

Can a company purchase its own debentures in the open market? Explain.

What are important profitability ratios? How are these worked out?

Describe the steps for creating Sinking Fund for redemption of debentures.

Name the head under which ‘discount on issue of debentures’ appears in the balance sheet of a company.

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

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