Class 12 Accountancy - Company Accounts and Analysis of Financial Statements - Chapter Issue and Redemption of Debentures NCERT Solutions | What is meant by a Debenture?

What is ‘Capital Reserve’?

State the meaning of ‘Debentures issued as a collateral security’.

Can the company purchase its own debentures?

What is meant by ‘Issue of debenture at discount and redeemable at premium?

Explain the different types of debentures?

What is meant by a ‘Irredeemable Debenture’?

What is discount on issue of debentures?

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

Describe the steps for creating Sinking Fund for redemption of debentures.

What is meant by ‘Mortgaged Debentures’?

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?

Prepare the format of statement of profit and loss and explain its items.

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

How would you study the Solvency position of the firm?

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

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

Explain how financial statements are useful to the various parties who are interested in the affairs of an undertaking?

State the meaning of Analysis and Interpretation.

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

What are various types of ratios?

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