Class 12th Accountancy 2017 Set3 Delhi Board Paper Solution
Financial statements are prepared following the consistent accounting concepts, principles, procedures and also the legal environment in which the business organizations operate. These statements are the sources of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.
From the above statement identify any two values that a company should observe while preparing its financial statements. Also state under which major headings and sub-headings the following items will be presented in the balance sheet of a company as per Schedule III of the Companies Act 2013.
General Reserves, short term loans and advances, Capital work in progress and design.
Values that a company should observe while preparing its financial statements are:
1) Financial statements should be prepared by following the accounting concepts, principles and procedures.
2) Providing authenticated information to users.
3) Financial statements should be prepared by following code of conduct and ethical and legal framework.
Major headings and sub-headings the following items will be presented in the balance sheet of a company as per Schedule III of the Companies Act 2013:
| Item | Main Heading | Sub Heading |
| General Reserves | Shareholder's Fund | Reserve and Surplus |
| Short term loans and advances | Current Assets | |
| Capital work in progress | Non Current Assets | Fixed Assets |
| Design | Non Current Assets | Fixed Assets/ Intangible Assets |
Popular Questions of Class 12th accountancy
- Q:-
What is Capital Fund? How is it calculated?
- Q:-
What is sacrificing ratio? Why is it calculated?
- Q:-
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
- Q:-
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
- Q:-
What is subscription? How is it calculated?
- Q:-
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating. - Q:-
Why is Profit and Loss Adjustment Account prepared? Explain.
- Q:-
If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
- Q:-
Why it is considered desirable to make the partnership agreement in writing.
- Q:-
On what occasions sacrificing ratio is used?
Recently Viewed Questions of Class 12th accountancy
- Q:-
Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?
- Q:-
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
- Q:-
State the difference between dissolution of partnership and dissolution of partnership firm.
- Q:-
What are the different ways in which a partner can retire from the firm?
- Q:-
How will you deal with a change in profit sharing ratio among existing partners? Take imaginary figures to illustrate your answer?
- Q:-
Why is Profit and Loss Adjustment Account prepared? Explain.
- Q:-
Explain why it is considered better to make a partnership agreement in writing.
- Q:-
Discuss the main provisions of the Indian Partnership Act 1932 that are relevant to partnership accounts if there is no partnership deed.
- Q:-
What is meant by partnership? Explain its chief characteristics? Explain.
- Q:-
In the absence of Partnership deed, specify the rules relating to the following :
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.