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?

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

What is discount on issue of debentures?

What is meant by conversion of debentures? Describe the method of such a conversion.

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

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

Explain the different types of debentures?

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

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?

Explain the nature of the financial statements.

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

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

Explain in detail about the significance of the financial statements.

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

What do you mean by Ratio Analysis?

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

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

Distinguish between Vertical and Horizontal Analysis of financial data.

State the importance of Financial Analysis?