Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is ‘Capital Reserve’?

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

Can the company purchase its own debentures?

What is discount on issue of debentures?

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

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?

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

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

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?

State the importance of Financial Analysis?

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

What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

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

Explain how common size statements are prepared giving an example.

The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days’ sales in inventory. Why?

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

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

Explain the process of preparing income statement and balance sheet.