Gujarat Board GSEB Class 12 Commerce Accounts Important Questions Part 2 Chapter 3 Company Final Accounts Important Questions and Answers.
GSEB Class 12 Accounts Important Questions Part 2 Chapter 3 Company Final Accounts
Answer the following in one sentence only :
Question 1.
As per section-129(1) of companies Act 2013, which concept is given by financial statements?
Answer:
As per section-129(1) of Companies Act 2013, Financial statements give an idea about true and fair view of the company.
Question 2.
As per section-129(1) of companies Act, 2013 to which companies the form of financial statements are not applicable?
Answer:
As per section-129(1) of companies Act, 2013, the form of financial statement are not applicable to electricity company, banking company and insurance company.
Question 3.
What is meant by financial year?
Answer:
According to section-2(41) of the companies Act, 2013, financial year in relation to any company means the period ending on the 31st March of every year.
Question 4.
Why financial statements are called the historical statements?
Answer:
Financial statements tire called the historical statements becaues they are related to past period.
Question 5.
In which form the figures are expressed in financial statements?
Answer:
The figures stated in financial statements are expressed in terms of money.
Question 6.
Which account shows the financial performance of the company?
Answer:
Profit and loss account shows the financial performance of the company.
Question 7.
What is called as operating cycle?
Answer:
The process of conversion of cash into raw material, conversion of raw material into finished goods. Conversion of finished goods into debtor and finally conversion of debtor into cash is called as operating cycle.
Question 8.
What is included in shareholders’ funds?
Answer:
In shareholders’ funds
- Share capital and
- Reserves and surplus are included.
Question 9.
When changes in stock and purchase are not recorded in profit and loss statement?
Answer:
When cost of goods sold are given then changes in stock and purchase are not recorded in profit and loss statement, because cost of goods sold = opening stock + purchase – closing stock.
Question 10.
What is trade receivable?
Answer:
During the normal curse of business, the amount due on account of goods sold or services rendered is called trade receivable.
Question 11.
What is trade payable?
Answer:
During the normal course of business, the amount due on account of goods purchased or service received is called trade payable.
Question 12.
What is included in non-current investment?
Answer:
Following investments are included in non-current investments
- Provident fund investments
- Debenture redemption fund investments
- Shares of subsidiary company
- Investment more than 12 months includes shares and debentures of other company, fixed deposits with bank, government securities, units of mutual fund.
Select right answer for each question :
Question 1.
As per which section of Companies Act, 2013, financial statements shall give a true and fair view of company?
(A) Section-129(1)
(B) Section-129(2)
(C) Section-192(1)
(D) Section-192(2)
Answer:
(A) Section-129(1)
Question 2.
According to section – 2(41) of the Companies Act,2013, financial year in relation to any company or body corporate means the period ending on ………………….. .
(A) 31st December of every year
(B) 30th June of every year
(C) 31st March of every year
(D) 30th September of every year
Answer:
(C) 31st March of every year
Question 3.
Financial statements are known as …………………. .
(A) Historical statement
(B) Trader statement
(C) Social statement
(D) Political statement
Answer:
(A) Historical statement
Question 4.
In which part of schedule-III of the Companies Act, 2013 the form of balance sheet is given?
(A) First
(B) Second
(C) Third
(D) Fourth
Answer:
(A) First
Question 5.
Which of the following is included in non-current liabilities of the balance sheet of a company?
(A) Trade Payables
(B) Short-term Borrowings
(C) Long-term Borrowings
(D) Short-term Provisions
Answer:
(C) Long-term Borrowings
Question 6.
Which of the following is not included in current liabilities of the balance sheet of a company?
(A) Trade Payables
(B) Long-term Provisions
(C) Short-term Borrowings
(D) Short-term Provisions
Answer:
(B) Long-term Provisions
Question 7.
Which of the following in included in Non-current assets of the balance sheet of a company ?
(A) Intangible Assets
(B) Trade Receivables
(C) Short-term Load and Advances
(D) Cash and cash equivalents
Answer:
(A) Intangible Assets
Question 8.
Which of the following is not included in current assets of the balance sheet of a company?
(A) Tangible Assets
(B) Bills Receivables
(C) Short-term Load and Advances
(D) Inventories
Answer:
(A) Tangible Assets
Question 9.
Which of the following is included in long-term borrowings?
(A) Provident Fund
(B) Workers’ Saving fund
(C) Public Deposit
(D) Cash credit
Answer:
(C) Public Deposit
Question 10.
Which of the following is not included in long term provisions?
(A) Provident Fund
(B) Workers’ Saving fund
(C) Employees Profit sharing fund
(D) Tax provision
Answer:
(D) Tax provision
Question 11.
Which type of assets computer software is?
(A) Current Assets
(B) Tangible Assets
(C) Intangible Assets
(D) Fictitious Assets
Answer:
(C) Intangible Assets
Question 12.
Which of the following is included in fixed intangible assets?
(A) Leasehold Assets
(B) Vehicles
(C) Software
(D) Tools
Answer:
(C) Software
Give answer of the following questions :
Question 1.
How will you show the following balances in balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Equity share capital
(2) Preference share capital
(3) Securities premium
(4) Calls in arrears
(5) Share forfeiture A/c
(6) Loss as per statement of profit and loss
(7) Provident fund
(8) Unclaimed dividend
(9) Bond
(10) Advance received from debtors
Answer:
| Particulars | Balance sheet head | Main head | Subhead |
| 1. Equity share capital | Equity-liabilities | Shareholders’ funds | Share capital |
| 2. Preference share capital | Equity-liabilities | Shareholders’ funds | Share capital |
| 3. Security premium | Equity-liabilities | Current liabilities | Other current liabilities |
| 4. Calls in arrears | Equity-liabilities | Shareholders’ funds | Deduct from share capital |
| 5. Share forfeiture A/c | Equity-liabilities | Shareholders’ funds | Share capital |
| 6. Loss as per profit and loss statement | Equity-liabilities | Shareholders’ funds | Reserve and surplus (deducted from sum of reserve balances) |
| 7. Provident fund | Equity-liabilities | Current liabilities | Long-term liabilities |
| 8. Unclaimed dividend | Equity-liabilities | Current liabilities | Long-term liabilities |
| 9. Bond | Equity-liabilities | Non-Current liabilities | Long-term borrowings |
| 10. Advance received from debtors | Equity-liabilities | Current liabilities | Other current liabilities |
Question 2.
How will you show following balance sheet of a company as per schedule-III of balances in Companies Act, 2013?
(1) Debenture
(2) Debenture redemption reserve
(3) Public deposit
(4) Term loan
(5) Bills payable
(6) Bank overdraft
(7) Calls in advance
(8) Proposed dividend
(9) Provision for gratuity
(10) Workmen accident compensation fund
Answer:
| Particulars | Balance sheet head | Main head | Subhead |
| 1. Debenture | Equity-liabilities | Non-current liabilities | Long-term borrowings |
| 2. Debenture redemption reserve |
Equity-liabilities | Shareholders fund | Reserve and surplus |
| 3. Public deposit | Equity-liabilities | Shareholders’ fund | Long-term borrowings |
| 4. Term loan | Equity-liabilities | Non-current liabilities | Long-term borrowings |
| 5. Bills payable | Equity-liabilities | Current liabilities | Trade payables |
| 6. Bank overdraft | Equity- liabilities | Current liabilities | Short-term borrowings |
| 7. Calls in advance | Equity- liabilities | Current liabilities | Other current liabilities |
| 8. Proposed dividend | Equity-liabilities | Current liabilities | Short-term provisions |
| 9. Provision for gratuity | Equity-liabilities | Non-current liabilities | Long-term provisions |
| 10. Workmen accident compensation fund |
Equity-liabilities | Shareholders’ fund | Reserve and surplus |
Question 3.
How will you show following balances in balance sheet of a company as per schedule-III of Companies Act1 2013?
(1) Lease-hold Assets
(2) Shares of subsidiary company
(3) Trademark
(4) Short-term investments
(5) Custom deposit
(6) Debtors
(7) Provident fund investments
(8) Semi-finished goods
(9) Machinery
(10) Pre-paid insurance premium
Answer:
| Particulars | Balance sheet head | Main head | Subhead |
| 1. Lease-hold Assets | Assets | Non-current Assets | Fixed Assets-Tangible |
| 2. Shares of subsidiary company | Assets | Non-current Assets | Non-current investments |
| 3. Trademark | Assets | Non-current Assets | Fixed Assets-Intangible |
| 4. Short-term investments | Assets | Current Assets | Current investments |
| 5. Custom deposit | Assets | Non-current Assets | Long-term loan and Advances |
| 6. Debtors | Assets | Current Assets | Trade Receivables |
| 7. Provident fund investments | Assets | Non-current Assets | Non-current investments |
| 8. Semi-finished goods | Assets | Current Assets | Inventories |
| 9. Machinery | Assets | Non-current Assets | Fixed Assets-Tangible |
| 10. Pre-paid insurance premium | Assets | Current Assets | Other current Assets |
Question 4.
How will you show following balances In balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Loan to employees
(2) Prepaid taxes
(3) Cheque received from debtors
(4) Stores and spare parts
(5) Goodwill
(6) Computer software
(7) Interest accrued on investment
(8) Advance given to creditors
(9) Electricity deposit
(10) Bank balance
Answer:
| Particulars | Balance sheet head | Main head | Subhead |
| 1. loan to employees | Assets | Non-current Assets | Long-term loans & Advances |
| 2. Prepaid taxes | Assets | Current Assets | Other current Assets |
| 3. Cheque received from debtors | Assets | Current Assets | Cash and cash equivalent |
| 4. Stores and spare parts | Assets | Current Assets | Inventories |
| 5. Goodwill | Assets | Non-current Assets | Fixed Assets – Intangible |
| 6. Computer software | Assets | Non-current Assets | Fixed Assets – Intangible |
| 7. Interest accrued on investment | Assets | Current Assets | Other current Assets |
| 8. Advance given to creditors | Assets | Current Assets | Short-term loans & Advances |
| 9. Electricity deposit | Assets | Non-current Assets | long-term loans & Advances |
| 10. Bank balance | Assets | Current Assets | Cash and cash equivalent |
Question 5.
How will you show following balances in balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Loan to director (temporary)
(2) Unpaid interest on debenture
(3) Cash credit from bank
(4) Machinery (to be sold next year)
(5) Computer
(6) Units of mutual fund (For short term)
(7) Debenture redemption premium (Redeemable during next year)
(8) Bank overdraft
(9) Debenture discount (to be written off next year)
(10) Rent received in advance
Answer:
| Particulars | Balance sheet head | Main head | Subhead |
| 1. Loan to director (temporary) | Assets | Current Assets | Short-term loan and Advance |
| 2. Unpaid interest on debenture | Equities-liabilities | Current liabilities | Other current Assets |
| 3. Cash credit from bank | Equities-liabilities | Current liabilities | Short-term borrowings |
| 4. Machinery (to be sold next year) | Assets | Non-current liabilities | Fixed Assets: Tangible |
| 5. Computer | Assets | Non-current Assets | Fixed Assets: Tangible |
| 6. Units of mutual fund (For short term) | Assets | Current Assets | Current investment |
| 7. Debenture redemption premium (Redeemable during next year) | Equities -liabilities | Current liabilities | Other current liabilities |
| 8. Bank overdraft | Equities-liabilities | Current liabilities | Short-term borrowings |
| 9. Debenture discount (to be written off next year) | Assets | Current Assets | Other current Assets |
| 10. Rent received in advance | Equities-liabilities | Current liabilities | Other current liabilities |
Question 6.
How will you show following balances in profit and loss statement of a company as per schedule-III of Companies Act, 2013?
(1) Sales
(2) Bank charges
(3) Salary
(4) Depreciation
(5) Audit fee
(6) Bad debt recovered
(7) Interest on Bank overdraft
(8) Rent
(9) Profit on sale of assets
(10) Written off debenture discount
(11) Stationery expenses
(12) Advertisement expenses
(13) Contribution to provident fund
(14) Interest received
(15) Bonus to employee
(16) Income from scrap
(17) Sale of Newspapers
(18) Selling expenses
(19) Bank interest paid
(20) Written off bad debts
Answer:
| Particulars | Head of Profit and Loss Statement |
| (1) Sales | Revenue from operation |
| (2) Bank charges | Other expenses |
| (3) Salary | Employee benefit expenses |
| (4) Depreciation | Depreciation and amortisation |
| (5) Audit fee | Other expenses |
| (6) Bad debt recovered | Other income |
| (7) Interest on Bank overdraft | Finance cost |
| (8) Rent | Other expenses |
| (9) Profit on sale of assets | Other Incomes |
| (10) Written off debenture discount | Depreciation and Amortisation |
| (11) Stationery expenses | Other expenses |
| (12) Advertisement expenses | Other expenses |
| (13) Contribution to provident fund | Employee benefit expenses |
| (14) Interest received | Other incomes |
| (15) Bonus to employee | Employee benefit expenses |
| (16) Income from scrap | Other incomes |
| (17) Sale of Newspapers | Other incomes |
| (18) Selling expenses | Other expenses |
| (19) Bank interest paid | Other expenses |
| (20) Written off bad debts | Other expenses |