12th | Volume 3 | Chapter:1 | Question No. 11 to 15 | Financial Statements of A Company

Question 11:

Classify the following items under major head and sub-head (if any) in the Balance Sheet of a company as per Schedule III of the Companies Act, 2013: (i) Capital Work-in-Progress: (ii) Provision for Warranties; (iii) Income received in Advance; and (iv) Capital Advances

Answer:

Item	Major Head	Sub-Head
Capital Work-in-Progress	Non-Current Assets	Fixed Assets- Capital Work-in-Progress
Provision for Warranties	Non-Current Liabilities	Long Term Provisions
Income Received in Advance	Current Liabilities	Other Current Liabilities
Capital Advances	Non-Current Assets	Long Term Loans & Advances

Question 12. Under which major heads and sub-heads will the following items be placed in the Balance Sheet of the company as per Schedule 11, Part I of the Companies Act, 2013?

(i) Debentures with maturity period in current financial year

(ii) Securities Premium Reserve

(ii) Provident Fund

(CBSE Sample Paper 2022)

Answer:

S. No.	Item	Major Head	Sub-head
(i)	Debentures with maturity period in current financial year	Current Liabilities	Other Current Liabilities
(ii)	Securities Premium Reserve	Shareholders' Funds	Reserves and Surplus
(iii)	Provident Fund	Non-current Liabilities	Long-term Provisions

Question 13:

Under which major head and sub-head of the Assets part of the Balance Sheet will the following be shown:

(i) Intangible Assets; (ii) Intangible Assets under Development; (iii) Investments (more than 12 months); (iv) Deferred Tax Assets (Net); (v) Stores and Spares; and (vi) Loose Tools?

Answer:

Items	Main head	Sub-head
Intangible Assets	Non-Current Assets	Fixed Assets
Intangible Assets under development	Non-Current Assets	Fixed Assets
Investments (more than 12 months)	Non-Current Assets	Non-Current Investments
Deferred Tax Assets (Net)	Non-Current Assets	Deferred Tax Assets (Net)
Stores and Spares	Current Assets	Inventories
Loose Tools	Current Assets	Inventories

Question 14:

Under which heads the following items on the Assets part of the Balance Sheet of a company will be presented?

(i) Sundry Debtors;	(ii) Patents and Trademarks;	(iii) Shares in Quoted Companies:
(iv) Advances recoverable in cash;	(v) Prepaid Insurance; and	(vi) Work-in-Progress (Machinery)?

Answer:

Items	Main head	Sub-head
Sundry Debtors	Current Assets	Trade Receivables
Patents and Trade Marks	Non-Current Assets	Fixed Assets (Intangible Assets)
Shares in Quoted Companies	Non-Current Assets	Non-Current Investments
Advance Recoverable in Cash	Current Assets	Short-term Loans and Advances
Prepaid Insurance	Current Assets	Other Current Assets
Work-in-Progress (Machinery)	Non-Current Assets	Fixed Assets (Capital Work-in-progress)

Question 15:

Under which of the major heads will the following items be shown while preparing Balance Sheet of a company, as per Schedule III of the Companies Act, 2013:

(i) Unamortised Loss on Issue of Debentures (To be written off after 12 months from the date of Balance Sheet);
(ii) 10% Debentures;	(iii) Stock-in-Trade;	(iv) Cash at Bank;
(v) Bills Receivable;	(vi) Goodwill;	(vii) Loose Tools;
(viii) Truck;	(ix) Provision for Tax; and	(x) Sundry Creditors?

Answer:

ITEMS	HEAD	SUB-HEAD
Unamortised Loss on Issue of Debentures (To be written off after 12 months from date of Balance sheet)	Non-Current Assets	Other Non-Current Assets
10% Debentures	Non-Current Liabilities	Long-term Borrowings
Stock-in-Trade	Current Assets	Inventories
Cash at Bank	Current Assets	Cash and Cash equivalents
Bills Receivable	Current Assets	Trade Receivables
Goodwill	Non-Current Assets	Fixed Assets (Intangible Assets)
Loose Tools	Current Assets	Inventories
Truck	Non-Current Assets	Fixed Assets (Tangible Assets)
Provision for Tax	Current Liabilities	Short term Provisions
Sundry Creditors	Current Liabilities	Trade Payables