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cbse 12th Standard Accountancy Analysis of Financial Statements Important Questions And Answers Study Material - QB365 Set D

Published on: 25/10/2025

Question Set D

cbse 12th Standard Accountancy Analysis of Financial Statements Important Questions And Answers Study Material - QB365

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Std: 12th Standard CBSE - Accountancy

chapter: Analysis of Financial Statements - Important Questions And Answers

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Questions:

Fill up / 1 Marks

2 x 1 = 2

What is the number of major heads which appear for the assets items of company's Balance Sheet?

Give the meaning of share capital.

1 Marks

1 x 1 = 1

Pass the necessary journal entry when 10,000 debenture of Rs.100 each are issued as collateral security against a Bank Loan at Rs.8,00,000.

Generic 3

7 x 3 = 21

Net profit after Interest but before tax Rs 1,40,000
15% Long term debt : Rs 4,00,000
Shareholders fund : Rs 2,40,000
Tax rate : 50% , Calculate Return on capital employed.

From the following particulars obtained from the books of Mohan Ltd. calculate the creditors turnover ratio and average payable period.Total purchases Rs.42,500 cash purchases Rs.4,000, purchases return Rs.2,000, creditors at the end of the year Rs.6,000; bills payable at the end of the year Rs.1000.

Under which head is the 'debenture redemption reserve shown in the balance sheet?

At the time of forfeiture of shares, with what amount the share capital account is debited?

What is the maximum rate of interest which the Board of Directors of a company can change on 'calls-in-arrears' if the articles are silent on the matter of such interest?

From the following information, calculate cash flow from investing activities and financing activities.

Particulars	Opening (Rs.)	Closing(Rs.)
Furniture (At cost)	40,000	56,000
Accumulated Depreciation on Furniture	12,000	18,000
Capital	2,00,000	2,80,000
Loan from Bank	50,000	30,000

During the year, furnitures costing Rs.8,000 was sold at a profit of Rs.6,000.Depreciation on furniture charged during the year amounted to Rs.10,000.

10.

State how does financial statement analysis ignore price level changes.

Generic 8

5 x 8 = 40

11.

From the following Balance Sheets of Ranjan Ltd. prepare Cash Flow Statement:

Liabilities	2001	2002	Assets	2001	2002
Equity Share Capital	1,50,000	2,00,000	Goodwill	36,000	20,000
12% Pre. Share Capita	75,000	50,000	Building	80,000	60,000
General Reserve	20,000	35,000	Plant	40,000	1,00,000
Profit and Loss A/c	15,000	24,000	Debtors	1,19,000	1,54,500
Creditors	37,500	49,500	Stock	10,000	15,000
		Cash	12,500	9,000
	2,97,500	2,58,500		2,97,500	3,58,500

Depreciation charged on plant was Rs. 10000 and building Rs.60000.

12.

Sai Ltd issued Rs.1,00,000,8% debentures of Rs.100 each, at a discount of 5%, redeemable at a premium of 10%. Record necessary journal entries in the books of Sai Ltd.

13.

Compute cost of materials consumed from the following information.
Opening inventory of materials Rs 5,00,000, materials purchased Rs 40,00,000 and closing inventory of materials Rs 6,00,000.

14.

Prepare comparative of Profit and loss from the following information.

Particulars	31st March,2014 Amt (Rs)	31st March,2015 Amt(Rs)
Revenue from Operations(Sales)	30,00,000	40,00,000
Cost of Goods Sold or Cost of Revenue from Operations	60% of Sales	55% of Sales
Paid Wages	25,000	30,000
Operating Expenses	20% of Gross Profit	25% of Gross Profit
Incoming Tax	40%	40%

15.

Shyam Ltd. invited applications for issuing for issuing 80,000 Equity shares of Rs.10 each at a premium of Rs.40 per share. The amount was payable as follows:
On Application Rs.35 per share (including Rs.30 Premium)
On Allotment Rs.8 per share (including Rs.4 Premium)
On First and Final Call - Balance
Applications for 77,000 shares were received. Share were allotted to all the applicants. Sundram to whom 7,000 shares were alloted failed to pay the allotment money. His shares were forfeited immediately after allotment. Afterwards the first and final call was made. Satyam the holder of 500 shares faled to pay the final call. His shares were also forfeited . Out of the forfeited shares 1,000 shares were re-issued at Rs.50 per share fully paid up. The re-issued shares includedall the shares of Satyam.
Pass necessary Journal Entries for the above transactions in the books of Shyam Ltd.

Generic 6

2 x 6 = 12

16.

Record the journal entries for forfeiture and re-issue in the following cases.
(i) X Ltd forfeited 200 shares of Rs 100 each, Rs 70 called up, on which the shareholders had paid application and allotment money of Rs 50 per share. Out of these, 150 shares were re-issued to Naresh as Rs 70 paid-up for Rs 80 per share.
(ii) Y Ltd forfeited 180 shares of Rs 10 each, Rs 8 called-up, issued at a premium of Rs 2 per share to R for non-payment of allotment money of Rs 5 per share (including premium). Out of these, 160 shares were re-issued to Sanjay as Rs 8 called-uo for Rs 10 per share.

17.

DLF Ltd acquired assets of Rs.50,00,000 and took over creditors of Rs.5,00,000 from Vishal Enterprises. DLF Ltd issued 8% debentures of Rs.100 each at a premium of 25% as purchase consideration. Record necessary journal entries in the books of DLF Ltd.

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Answers Key:

Fill up / 1 Marks

2 x 1 = 2

()
Two

()
The share capital is the amount that a company has raised by issue of shares.

1 Marks

1 x 1 = 1

()
Irredeemable or perpetual debentures are those that are not repayable during the lifetime of the company. These debentures are repayable only at the time of winding up of the company.

Generic 3

7 x 3 = 21

Return on capital employed = Net profit before interest and tax/Capital employed X 100
Interest on long term debt = 15/100 X 4,00,000
=60,000
Net Profit before Interest = 1,40,000 + 60,000 = 20,00,000
Capitak employed = Debt + Shareholders fund
= 4,00,000 + 2,40,000 = 6,40,000
Return on Capital employed = 2,00,000/6,40,000 X 1000 = 31.25%

Creditors turnover ratio = 5.21 times; Average payable period = 70 days

The debenture redemption reserve is shown on the equity and liabilities part of the balance sheet under the head reserves and surplus.

At the time of forfeiture of shares, share capital account is debited with the amount called up (excluding securities premium) on such shares.

The maximum rate of interest as per Table F is 10%.

Cash flow from financing activities=Rs.60,000; Cash used in investing activities=Rs.(14,000)

10.

The recording in financial statements is on the basis of actual cost, whereas the value of money goes on changing.As such, the comparison of previous year figures with current year figures may lead to misleading conclusions. For example, sale of fixed assets in 2012 would be much higher than in 2008 due to rising prices because fixed assets are still being expressed on the basis of cost incurred in a number of years ago while sales (revenue from operations) are being expressed at their current prices. As such, sufficient adjustment must be made for changes in price level while making the analysis.

Generic 8

5 x 8 = 40

11.

CASH FLOW STATEMENT
for the year ended 31st December,2002
particulars's		Rs.	Rs.
A	Cash Flow from Operating Activities

B.	Net Profit before tax:
	closing Balanced of Profit and Loss A/c
	Closing Balance of Profit and Loss A/C	24,000
	Add: Transfer to General reserve	15,000
		39,000
	Less: opening Balance Of Profit and Loss A/c	15,000
	Net Profit before tax and extradionary items
	Adjustment for:
	Add: Depreciation on Plant	10,000
	Depreciation on Building	60,000
	Goodwill written off	16,000	86,000
	Operating Profit before working capital changes		1,10,000
	Adjustment for:
	Increase in creditors	12,000
	Increase in Debtors	(35,500)
	Increase in stock	(5,000)	(28,500)
	Net Cash from operating activities (A)`		81,500
B	Cash Flow from Investing Activities
	Purchase of Plant (Note 2)	(70,000)
	Purchase of Building (Note 1)	(40,000)
	Net cash used in investing activities (B)		(1,10,000)
C.	Cash Flow from financing Activities
	Issue of Equity Shares	50,000
	Redemption of 12% Preference Shares	(25,000)
	Net Cash from financing activities (C)		25,000
	Net decrease in cash and cash
	Equivalents (A+B+C)		(3,500)
	Cash and cash equivalents at the begining of the year		12,500
	Cash and cash equivalents at the close of the year		9,000

Working Notes

Dr BUILDING ACCOUNT Cr
Pariticular	Rs.	Particulars	Rs.
To Balance b/d	80,000	By Depreciation A/c	60,000
To Bank A/c	70,000	By,Balance c/d	60,000
	1,20,000		1,20,000

Dr PLANT ACCOUNT Cr
Particular	Rs.	Particulars	Rs.
To Balance b/d	40,000	By,Depreciation A/c	10,000
To Bank A/c	70,000	By Balance c/d	1,00,000
	1,10,000		1,10,000

12.

JOURNAL

Particulars		Amt(Dr)	Amt(Cr)
Bank A/c (1,000 x 95)	Dr	95,000
To Debenture Application and Allotment A/c			95,000
(Being application money received)
Debenture Application and Allotment A/c (1,000 x 95)	Dr	95,000
Loss on Issue of Debentures A/c [(1,000 x 10) + (1,000 x 5)]	Dr	15,000
To 8% Debentures A/c (1,000 x 100)			1,00,000
To Premium on Redemption of Debentures A/c (1,000 x 10)			10,000
(Being issue of debentures at 5% discount redeemable at 10% premium)

(v) When debentures are issued at a premium and redeemable at par.

Particulars		Amt(Rs.
(a) Bank A/c	Dr
To Debenture Application A/c		[With the application money]
(b) Debenture Application A/c	Dr	[With the application money]
To X% Debentures A/c		[With nominal value]
To Securities Premium Reserve A/c		[With premium]

13.

Cost of materials consumed=Opening inventory of materials+ Purchases - Closing inventory of materials
= Rs 5,00,000+Rs 40,00,000-Rs 6,00,000
= Rs 39,00,000.

14.

Comparative Statement of Profit and Loss
for the years ended 31st March,2014 and 2015

Particulars	31st March,2014 Amt(Rs)	31st March,2015 Amt(Rs)	Absolute Change (Increase or Decrease)(Rs)	Percentage Change (Increase or Decrease)(%)
I. Revenue from Operations(Sales)	30,00,000	40,00,000	10,00,000	33.33
II. Expenses
(a) Cost of Goods Sold or Cost of Revenue from Operations	18,00,000	22,00,000	4,00,000	22.22
(b) Operating Expense	2,40,000	4,50,000	2,10,000	87.50
Total Expenses	20,40,000	26,50,000	6,10,000	29.9
III. Profit before Tax(I-III)	9,60,000	13,50,000	3,90,000	40.63
(-) Income Tax@40%	3,84,000	5,40,000	1,56,000	40.63
IV. Profit after tax	5,76,000	8,10,000	2,34,000	40.63

15.

Capital Reserve Rs.7,000 i.e. Rs.4,500 + Rs.2,500 i.e., Rs.35,000 \(\div \)7,000 (s)\(\times \)500 (s)
[Hint: (i) Bank A/c=Rs.26,95,000 (Application + 5,60,000 (Allotment) Rs.4,86,500 (Call)+Rs.50,000 (Reissue)
(ii) It is implied that securities premium reserve Rs.6 per share will also be adjusted with share first and final call money.
(iii) Securities Premium Reserve: On Application Rs.23,10,000; on allotment Rs.3,08,000; On Call Rs.4,20,000, on reissue Rs.40,000.

Generic 6

2 x 6 = 12

16.

(i) Transfer to capital reserve = Rs 7,500
(ii)Transfer to capital reserve = Rs 800

17.

Number of debentures issued = 36,000