Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is discount on issue of debentures?

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.

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?

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

Explain the different types of debentures?

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?

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

State the meaning of financial statement analysis?

Explain the limitations of financial statements.

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

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

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?

Distinguish between Vertical and Horizontal Analysis of financial data.

What are liquidity ratios? Discuss the importance of current and liquid ratio.

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

State the meaning of Analysis and Interpretation.