Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is meant by a Debenture?

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

What is ‘Capital Reserve’?

Can the company purchase its own debentures?

What is discount on issue of debentures?

What is meant by ‘Issue of debenture at discount and redeemable at premium?

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

What is meant by ‘Premium on Redemption of Debentures’?

Explain the different terms for the issue of debentures with reference to their redemption.

Under which head is the ‘Debenture Redemption Reserve’ shown in the balance sheet?

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

What do you mean by Ratio Analysis?

List the techniques of Financial Statement Analysis.

State the meaning of financial statement analysis?

What are various types of ratios?

Distinguish between Vertical and Horizontal Analysis of financial data.

What are limitations of financial statement analysis?

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.

List any three objectives of analysing financial statements?

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

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

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

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

What are Comparative Financial Statements?

What do you mean by Common Size Statements?

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

Prepare the format of balance sheet and explain the various elements of balance sheet.

State the importance of Financial Analysis?

What do you mean by Ratio Analysis?