Short Answer Questions
Question 1.
Solution 1. When financial statements figures for two or more years are placed side-by-side to facilitate comparison, these are called ‘Comparative Financial Statements’. In such a statement figures of production, revenue from operations, expenses, profits etc. are put side-by-side to draw conclusions about the profitability and financial health of the business. It also indicates the trend of change as well as the strong points and weak points of the enterprise.
Question 2.
Solution 2. A single year’s balance sheet shows only the balance of accounts on a particular date, whereas the comparative balance sheet shows not only the balances of accounts as on different dates but also the extent of increase or decrease in various items of balance sheet.
The form of comparative balance sheet consists of five columns. In the first column the items of Balance Sheet are entered. In the second column the date for previous year is shown and in the third column the date for current year is shown. In the fourth column the increases or decreases in absolute data is shown in terms of rupee amounts. Fifth column shows the percentage of increase or decrease in absolute data.
Question 3.
Solution 3. Statement of Profit and Loss shows the net profit or net loss of that year. A comparative statement of profit and loss shows the net profits for a number of years so that changes in absolute data in term of money as well as in terms of percentages may be known. Comparative statement of profit and loss provides the following information’s:
i. Rate of increase or decrease in revenue from operations.
ii. Rate of increase or decrease in cost of materials consumed.
iii. Rate of increase or decrease in incomes and expenses.
iv. Rate of increase of decrease in net profit.
The form of comparative statement of profit and loss also consists of five columns. In the first column items of statement of Profit & Loss are shown. In the second column the data for previous year is shown and in the third column the date for current year is shown. In the fourth column the increase or decrease in absolute data is shown in term of rupee amounts.
Question 4.
Solution 4.
Question 5.
Solution 5
Question 6.
Solution 6
Numerical Questions
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.
Question 9.
Solution 9.
Question 10.
Solution 10.
Question 11.
Solution 11.
Working Note:-
Calculation of Other Expenses:-
Gross Profit = Revenue from Operations – Cost of Materials Consumed
For the Year of 2014-15
Gross Profit = Rs. 6,00,000 – Rs. 4,50,000
Gross Profit = Rs. 1,50,000
For the Year of 2015-16
Gross Profit = Rs. 8,00,000 – Rs. 4,80,000
Gross Profit = Rs. 3,20,000
Other Expenses (2014-15) = Rs. 1,50,000 × 10% = Rs. 15,000
Other Expenses (2015-16) = Rs. 3,20,000 × 20% = Rs. 64,000
Question 12.
Solution 12.
Question 13.
Solution 13.
Question 14.
Solution 14.
Question 15.
Solution 15.
Question 16.
Solution 16.
(b) Values which Yash Ltd. is trying to propagate:-
(i) Recognition of hardwork and honesty of employees.
(ii) Ethical practices of Company.
Question 17.
Solution 17.
Question 18.
Solution 18.
Question 19.
Solution 19.
Question 20.
Solution 20.
Question 21.
Solution 21.
Question 22.
Solution 22.
Question 23.
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Question 24.
Solution 24.
Question 25.
Solution 25.
Question 26.
Solution 26.
Question 27.
Solution 27.
Question 28.
Solution 28.
Question 29.
Solution 29.
Question 30.
Solution 30.
Question 31.
Solution 31.