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 |
|
Share
Application Money |
Share
Application Money |
It
is shown as a separate line item |
|
Unpaid
Dividend |
Current
Liabilities |
It
is shown as ‘Other Current |
|
Dividend
not paid on Cumulative |
Contingent
Liabilities and |
It
is shown as Contingent |
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 |
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
Chapter 1 – Financial Statement of a Company
Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 33
Click on below links for
12th TS Grewal’s Accountancy Solutions