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प्रश्न
'Panipat Blankets Limited' are the manufacturers and exporters of blankets. The company decided to distribute 1,000 blankets free of cost to five villages of Kashmir which had been damaged by the floods. It also decided to employ 100 young persons from these villages in their newly established factory at Ludhiana in Punjab To meet the requirements of funds for its new factory, the company issued 1,00,000 equity shares of Rs 10 each and 2,000, 9% debentures of Rs 100 each to the vendors of machinery purchased for Rs 12,00,000.
Pass necessary journal entries for the above transactions in the books of the company. Also, identify anyone value which the company wants to communicate to the society.
उत्तर
| Journal In the books of Panipat Blankets Ltd |
||||
| Date | Particulars | L.F. |
Dr. Rs |
Cr. Rs |
|
Machinery A/c Dr. To Vendor (Being purchased machinery) |
12,00,000
|
12,00,000
|
||
|
Vendor A/c Dr. To Equity Share Capital A/c To 9% Debentures A/c (Being issued 1,00,000 equity shares and 2,000 |
12,00,000
|
10,00,000 2,00,000
|
||
Values involved in the above scenario
(1) Improvement in employment opportunities
(2) Social welfare
संबंधित प्रश्न
What is meant by 'Financial Statements' of a company?
Financial Statements are prepared following the constituent accounting concepts principles procedures and also the legal environment in which the business organisation operate. These statements are the source of information on the basis of which conclusions are drawn about the profitability and financial position of a company so that their users can easily understand and use them in their economic decisions in a meaningful way.
From the above statements identify any two values that a company should observe while preparing its financial statements. Also, State under which major headings and sub-headings the following items will be presented in the Balance Sheet of a company as per Schedule III of the Companies Act 2013
(1) Capital Reserve
(2) Calls-in-Advance
(3) Loose Tools
(4) Bank overdraft
State any one limitation of Financial Statement Analysis’
State any two limitations and any two objectives of 'Analysis of Financial Statement'.
State the significance of analysis of financial statements to ‘Top Management’.
Short Answer Question
State the meaning of financial statements?
Show the following items in the balance sheet as per the provisions of the Companies Act, 2013 in Schedule III:
| Particulars | Rs. | Particulars | Rs. |
| Preliminary Expenses | 2,40,000 | Good will | 30,000 |
| Discount on issue of shares | 20,000 | Loose tools | 12,000 |
| 10% Debentures | 2,00,000 | Motor Vehicles | 4,75,000 |
| Stock in Trade | 1,40,000 | Provision for tax | 16,000 |
| Cash at bank | 1,35,000 | ||
| Bills receivable | 1,20,000 |
A company has an opening credit balance in Surplus, i.e., Balance in Statement of Profit and Loss of ₹ 1,00,000. During the year, it earned a profit of ₹ 75,000. It decided to transfer ₹ 15,000 to Debentures Redemption Reserve (DRR) and also proposed to pay dividend of ₹ 25,000.
How will be the appropriations shown in the financial statements?
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 |
||
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?
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) Worl-in-Progress (Machinery)?
Prepare Balance Sheet of VT Ltd. as at 31st March 2019, from the following information as per Schedule III, Part I of the Companies Act, 2013:
| ₹ | ₹ | |||
| General Reserve | 3,000 | Fixed Assets: Tangible Assets (Cost) | 9,000 | |
| 8% Debentures | 3,000 | Other Current Liabilities | 2,500 | |
| Surplus, i.e., Balance in Statement of Profit and Loss (Credit) | 1,200 | Share Capital | 5,000 | |
| Depreciation of Fixed Assets | 700 | Other Current Assets | 6,400 |
From the following information, prepare Note to Accounts on Finance Costs: Interest paid to Bank ₹ 75,000; Interest on Debentures ₹ 58,000; Loss on issue of Debentures written off ₹ 27,500; and Commitment Charges ₹ 15,000.
The financial statements do not exhibit
Which of the following statement is not true?
‘Financial statements are prepared based on past data’. Explain how this is a limitation.
What are the objectives of preparing financial statements?
___________ is conducted by bankers and government.
Assertion (A): The focus of calculation of working capital revolves around managing the operating cycle of the business.
Reason (R): It is because the concept of operating cycle is required to ascertain the liquidity of assets and urgency of payments to liabilities.
What are the objectives of financial statements? They provides ______.
Financial statements are the ______ of information for interested parties.
What are the items shown under the heading 'Reserves and Surplus'?
What are the items shown under the heading 'Miscellaneous expenditure?'
Match the following:
| (i) | Gross profit | (a) | The explanatory notes to financial statements |
| (ii) | Operating profit | (b) | Amounts receivable by the company |
| (iii) | Sundry Debtors | (c) | Amounts payable by the company |
| (iv) | Sundry Creditors | (d) | Sales - Cost of good sold |
| (v) | Schedules | (e) | Gross profit - Operating expenses |
| (vi) | Net profit | (f) | Operating profit - interest and tax |
What are the uses and importance of financial statements?
What are the limitations of financial statements?
What are the items shown under the heading of "Current assets" in the balance sheet?
The financial statements of a business enterprise include ______.
Which of the following is not a part of Finance Cost (in Statement of Profit and Loss)?
Carriage Inwards is shown in the Statement of Profit and Loss under ______.
Purchase of goods for reselling is shown in the Statement of Profit and Loss under ______.
______ are especially interested in the average payment period, since it provides them with a sense of the bill-paying patterns of the firm.
Assertion (A): Financial statements are the end products of the accounting process which reveal the financial results of a specified period and financial position as on a particular date.
Reason (R): The basic objective of these statements is to provide information required for decision making by the management as well as other outsiders who are interested in the affairs of the undertaking, as per Section 129 Schedule III to the Companies Act, 2013 every year.
‘Freedom to Choose of method of depreciation’ refers to which limitation of financial statement analysis.
| Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5: 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March 2022, Nitya withdrew ₹ 7,500 at the end of every quarter. |
The average number of months for which interest on drawings will be calculated will be:
Richa and Anmol are partners sharing profits in the ratio of 3 : 2 with capitals of ₹ 2,50,000 and ₹ 1,50,000 respectively. Interest on capital is agreed @6% p.a. Anmol is to be allowed an annual salary of ₹ 12,500. During the year ended 31st March 2023, the profits of the year prior to calculation of interest on capital but after charging Anmol’s salary amounted to ₹ 62,000. A provision of 5% of this profit is to be made in respect of manager’s commission.
Following is their Profit & Loss Appropriation Account:
| Particulars | (₹) | Particulars | (₹) |
| To Interest on Capital | By Profit & loss account (After manager’s commission) | __(2)__ | |
| Richa | ______ | ||
| Anmol | ______ | ||
| To Anmol’s Salary a/c | 12,500 | ||
| To Profit transferred to: Richa’s Capital A/C (1) | __(1)__ | ||
| Anmol’s Capital A/c | ______ | ||
| ______ | ______ |
The amount to be reflected in blank (2) will be:
