12th | Volume 3 | Chapter:1 | Question No. 1 to 5 | Financial Statements of A Company

Question 1:

What are the major heads in the Equity and Liabilities part of the Balance Sheet as per Schedule III?

Answer:

The major heads in the Equities and Liabilities part of the Balance sheet are:

i. Shareholder’s Funds,

ii. Share Application Money Pending Allotment,

iii. Non- Current Liabilities and

iv. Current Liabilities

Balance Sheet as at_______
Particulars	Note No.	( `)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital
b. Reserves and Surplus
c. Money Received against Share Warrants
2. Share Application Money Pending Allotment
3. Non-Current Liabilities
a. Long-term Borrowings
b. Deferred Tax Liabilities (Net)
c. Other Long-term Liabilities
d. Long Term Provisions
4. Current Liabilities
a. Short-term Borrowings
b. Trade Payables
c. Other Current Liabilities
d. Short-term Provisions
Total

Question 2:

Under which major head will the following be shown:

(i) Share Capital; and (ii) Money Received Against Share Warrants?

Answer:

Items	Major Head
Share Capital	Shareholder’s Funds
Money received against share warrants	Shareholder’s Funds

Question 3:

List any five items that are shown under Reserves and Surplus.

Answer:

Items shown under Reserves and Surplus are:

i. Capital Reserve,

ii. Capital Redemption Reserve,

iii. Securities Premium Reserve,

iv. Debenture Redemption Reserve,

v. Revaluation Reserve etc.

Question 4:

Under which sub-head will the following be classified or shown:
(i) Long-term Borrowings; (ii) Deferred Tax Liabilities (Net); and (iii) Long-term Provision?

Answer:

Items	Sub-head
Long-term Borrowings	Non-Current Liabilities
Deferred Tax Liabilities (Net)	Non-Current Liabilities
Long-Term Provisions	Non-Current Liabilities

Question 5:

Name the items that are shown under Long-term Borrowings.

Answer:

Items shown under Long-term Borrowings are:

a. Debentures,

b. Bonds,

c. Terms Loans (both from Banks and from others),

d. Public Deposits,

e. Other Loans and Advances.