DK Goel Solutions Class 12 Accountancy Chapter 1 Financial Statements of Companies

Question 1:

Solution .1

Question.2 

Solution .2

Question. 3

Solution .3

Question.4

Solution .4

Question 5.

Solution .5

Question 6.

Solution 6.

Question 7.

Solution 7.

Question 8.

Solution 8.

i. Current

ii. Current

iii. Non-Current

iv. Non-Current

v. Current

Question 9. 

Solution 9 .

Question 10.

Solution 10. Both will be classified under ‘Shareholder’s Funds’.

Question 11 A (new). 

Solution 11 A (new). (i) Outstanding Salary shows in Current Liabilities under Other Current Liabilities.
(ii) Bank Balance shows in Current Assets under Cash and Cash Equivalents.
(iii) Unpaid Matured Deposits shows in Current Liabilities under Other Current Liabilities.
(iv) Preliminary Expenses not shown in balance sheet.
(v) Bills Payable shows in Current Liabilities under Trade Payables.

Question 11 B

Solution 11 A (new). (i) Patents and Trade Marks shows in Non-current assets under fixed assets (intangible assets).
(ii) Income Received in Advance shows in Current liabilities under Other current Liabilities.
(iii) Debentures issued by the Company shows in Non-Current Liabilities under Long-term Borrowing.
(iv) Stores and Spare-parts shows in Current Assets under Inventories.
(v) Motor Vehicles show in Non-Current Assets under Fixed Assets (Tangible Assets).
(vi) Forfeited Shares Account shows in Shareholder’s Fund added to Subscribed Capital.
(vii) Government Securities shows in Non-Current Assets under Non-Current Investments.
(viii) Uncalled Liabilities on Partly paid shares shows in Commitments in notes to accounts.

Question.11

Solution .11 Current Liabilities:

1. Short term Borrowing
2. Trade Payable
3. Other Current Liability
4. Short Term Provision

Question 12 A (new). 

Solution 12 A (new).

Question 12.

Solution 12.

Question 13 (new). 

Solution 13 (new).

Question 13.

Solution 13.

Question 14 (new). 

Solution 14 (new).

Question 14.

Solution 14.

i. Current

ii. Current

iii. Non-Current

iv. Current

v. Non-Current

vi. Current

Question 15 (new). 

Solution 15 (new).

Question 15. 

Solution 15.

Question 16 (new).

Solution 16 (new).

Question 16. 

Solution 16. Sub-Headings Under Current Assets:

1. Current Investment
2. Inventories
3. Trade receivables
4. Cash and cash equivalents
5. Short-term loans and advances

Question 17 A (new). 

Solution 17 A (new).

Question 17 B (new). 

Solution 17 B (new).

Question 17.

Solution 17.

Question 18 (new). 

Solution 18 (new).

Question 18. 

Solution 18. Revenue from Operations: Sales and Revenue from services rendered
Other Income: Interest on Loans given, Divided income, Sale of miscellaneous items and Refund of income tax.

Question 19 (new). 

Solution 19 (new).

Question 19.

Solution .19 Revenue from Operations: Revenue from serviced rendered, Interest on loan given, and Dividend income
Other Income: Refund on income tax and Sale of miscellaneous items.

Question 20 (new). 

Solution 20 (new).

Question.20.

Solution .20

Question 21 (new).

Solution 21 (new).

Question.21

Solution .21

Question 22 (new).

Solution 22 (new).

Question22. 

Solution .22

Question 23 (new). 

Solution 23 (new).

Question.23 

Solution .23

Rs. 3,90,000 will be shown in the Statement of profit and Loss Against change in inventories.

Question 24 (new). 

Solution 24 (new).

Question 24. 

Solution 24.

Question 25 (new). 

Solution 25 (new). Revenue from Operations: Sales and Revenue from services rendered
Other Income: Interest on Loans given, Divided income, Sale of miscellaneous items and Refund of income tax.

Question 25.

Solution 25.

Employee Benefit Expenses:

1. Salaries
2. Medical Expenses
3. Gratuity paid
4. Contribution on provident fund.

Question.26

Solution 26

Question 27 (new). Compute Revenue from Operations, Other Income and Total Revenue for a Manufacturing firm from the following information:
Sale of products Rs. 35,00,000; Sales Returns Rs. 50,000; Sale of Services Rs. 2,00,000; Sale of scrap Rs. 70,000; Sale of Miscellaneous items Rs. 6,000; Dividend Received Rs. 25,000

Solution 27 (new).

Question 27 Out of the following identify the items to be shown in the Notes of Accounts on Finance Costs:

1. Interest paid in bank overdraft
2. Interest paid on borrowings
3. Interest received on term deposits
4. Deposit on issue of debentures written off
5. Interest paid on term loan

Solution 27.

Question 28 (new).

Solution 28 (new).

Question 28. 

Solution .28

Question 29 (new). 

Solution 29 (new).

Question.29

Solution 29. Other Expenses:

1. Consumptions of loose tools
2. Courier expenses
3. Carriage outwards
4. Discount allowed
5. Bank Charges
6. Rent for Warehouse'

Question 30 (new).

Solution 30 (new).

Question 30.

Solution 30.

Question 31 (new).

Solution 31 (new).

Question 31.

Solution 31.

Question 32 (new). 

Solution 32 (new). Employee Benefit Expenses:
i. Salaries
ii. Medical Expenses
iv. Gratuity paid
vi Contribution on provident fund

Question 32. 

Solution 32.

Question 33 A (new).

Solution 33 A (new).

Question. 33 (A)

Solution 33 (A).

1. i. Outstanding salary: Current Liabilities under other Current Liabilities
2. ii. Bank balance: Current Assets under cash and cash Equivalents.
3. iii. Unpaid matured deposits: Current Liabilities under Other Current Liabilities.
4. iv. Preliminary expenses: Not Shown in Balance Sheet since they are written off in the same year.
5. v. Bills payable: Current Liabilities under Trade payables
6. vi. Sale of services: Revenue from Operations.
7. vii. Goodwill written off: Depreciation and Amortization Expenses.
8. viii. Medical Expenses: Employee Benefit Expenses.

Question 33 (B).

Solution 33 (B).

Question 34 (new). 

Solution 34 (new). Finance Cost:
i. Interest paid in bank overdraft
ii. Interest paid on borrowings
iii. Deposit on issue of debentures written off
iv. Interest paid on term loan

Question 34.

Solution 34.

Question 35 (new).

Solution 35 (new).

Finance Cost Rs. 6,86,000 (Interest Exp. RS. 6,50,000 plus Other Borrowing Costs Rs. 36,000)

Question 35.

Solution 35.

Question 36 (new).

Solution 36 (new). Other Expenses:
i. Consumptions of loose tools
iv. Courier expenses
v. Carriage outwards
vi. Discount allowed
vii. Bank Charges
viii. Rent for Warehouse

Question 36.

Solution 36.

Question 37 (new). 

Solution 37 (new).

Question 37.

Solution 37.

Question 38 (new).

Solution 38 (new).

Question 38.

Solution 38.

Question 39 A (new).

Solution 39 A (new).

Question 39 (A).

Solution 39 (A).

Question.39 (B)

Solution .39 (B)

Question 40 (new). 

Solution 40 (new). These five items shown under Reserve and Surplus are:
i. Capital Reserves;
ii. Securities Premium Reserve;
iii. Debenture Redemption Reserve;
iv. Revaluation Reserve;
v. Capital Redemption Reserve

Question 40.

Solution 40.

Question 41 (new). 

Solution 41 (new).

Question 41. 

Solution 41.

Question 42 (new). 

Solution 42 (new).

Question 42.

Solution 42.

Question 43 (new). 

Solution 43 (new).

Question 43.

Solution 43.

Question 44 (new). 

Solution 44 (new). Rs. 45,00,000 as Long term Borrowings
Rs. 15,00,000 as Other Current Liabilities

Question 44.

Solution 44. These five items shown under Reserve and Surplus are:

1. Capital Reserves;
2. Securities Premium Reserve;
3. Debenture Redemption Reserve;
4. Revaluation Reserve;
5. Capital Redemption Reserve

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