commercemine.com

12th |  Financial Statement of a Company | Question No.  6 To 10 | Ts Grewal Solution 2022-2023

Question 6:


State giving reason whether Trade Receivables are classified as Current Assets or Non-current Assets in the Balance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases.   

 

 

 

 

Case

Operating Cycle Period (Months) 

Expected Realisation Period (Months)

 

 

 

1

10

11

2

10

12

3

10

13

4

14

13

5

15

16

 

 

 

 

 

Answer:


 

Case

As Current Assets or Non- Current Assets

Reason

1.

Current Assets

Expected receipt is more than operating cycle but receivable within 12 months.

2.

Current Assets

Expected receipt is more than operating cycle but receivable within 12 months.

3.

Non- Current Assets

Expected receipt is more than operating cycle and receivable after 12 months.

4.

Current Assets

Expected receipt is less than operating cycle.

5.

Non- Current Assets

Expected receipt is more than operating cycle and receivable after 12 months.

 

Question 7:


State giving reason whether Trade Payables are classified as Current Liabilities or Non-current Liabilities in the Calance Sheet of a Company as per Schedule III of the Companies Act, 2013 in the following cases:

Case

Operating Cycle Period (Months) 

Expected Payment Period (Months

1

10

11

2

10

12

3

10

13

4

14

13

5

15

16

 

 

 

 

 

 

Answer:


Case

As Current Liabilities or Non- Current Liabilities

Reason

1.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

2.

Current Liabilities

Expected payment is more than operating cycle but payable within 12 months

3.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

4.

Current Liabilities

Expected payment is less than operating cycle

5.

Non- Current Liabilities

Expected payment is more than operating cycle and payable after 12 months

 

Question 8:


Under which head and how are the following items shown in the Balance Sheet of a company under Schedule III:
(i) Calls-in-Arrears;  (ii)  Share Application Money Pending Allotment; (iii) Unpaid Dividend; and (iv) Dividend not paid on Cumulative Preference Shares?

 

 

 

Answer:


 

Items

Head

Disclosure

 Calls-in-Arrears

 Shareholder’s Funds

 It is shown as a deduction from
 Subscribed Capital shown as
 ‘Subscribed but not fully paid’
 under Shareholder’s Funds

 Share Application Money
 Pending Allotment

 Share Application Money
 Pending Allotment

 It is shown as a separate line item

Unpaid Dividend

 Current Liabilities

 It is shown as ‘Other Current
 Liability’ under Current Liabilities

 Dividend not paid on Cumulative
 Preference Shares

 Contingent Liabilities and
 Commitments

 It is shown as Contingent
 Liabilities and Commitments in
 Notes to Accounts


Question 9:


Under which main head and sub-head of Equity and Liabilities part of the Balance Sheet are the following items classified or shown:
 

(i)   Bonds; 

(ii)   Debentures

(iii) Public Deposits;

(iv)   Capital Redemption Reserve;

(v)  Forfeited Shares Account:

(vi)    Sundry Creditors; and 

(vii) Interest Accrued but Not Due on Debentures?

 

Answer:


 

Items

Main head

Sub-head

 Bonds

 Non-Current Liabilities

 Long Term Borrowings

 Debentures

 Non-Current Liabilities

 Long Term Borrowings

 Deposits

 Non-Current Liabilities

 Long Term Borrowings

 Capital redemption Reserve

 Shareholder’s Funds

 Reserves and Surplus

 Share Forfeiture Account

 Shareholder’s Funds

 Subscribed Capital under Share Capital

 Sundry Creditors

 Current Liabilities

 Trade Payables

 Interest Accrued but not due on
 Debentures

 Current Liabilities

 Other Current Liabilities

 

Question 10:


State any two items that are included in the following major heads under which liabilities of a company are shown: (i) Reserves and Surplus; (ii) Long-term Borrowings;  (iii)  Short-term Borrowings; (iv) Other Current Liabilities.

 

Answer:


 

Major head

Items

 Reserves and Surplus

 Capital Reserve, Revaluation Reserve

 Long-term Borrowings

 Debentures, Term Loans from Bank and Others

 Short-term Borrowings

 Cash credit from bank, Loans repayable on demand

 Other Current Liabilities

 Income received in advance, Unpaid Dividends

 

Click below for more Questions

Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

Click on below links for 

12th TS Grewal’s Accountancy Solutions

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021