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1.12 Analysis of Financial Statements—CBSE XII

Solved Questions

Illustration 1.
Under what heads and sub-heads the following items will appear in the Balance Sheet of
a company as per Schedule III, Part I of the Companies Act, 2013:
(i) Mining Rights;
(ii) Encashment of Employees Earned Leave Payable on Retirement;
(iii) Vehicles. (AI 2013, Modified)
Solution:
S. No. Items Main Head Sub-head
(i) Mining Rights Non-current Assets Property, Plant and Equipment and
Intangible Assets—Intangible Assets
(ii) Encashment of Employees Earned Non-current Liabilities Long-term Provisions
Leave Payable on Retirement
(iii) Vehicles Non-current Assets Property, Plant and Equipment and
Intangible Assets—Property, Plant and Equipment
Illustration 2.
From the following Trial Balance of West Coast Ltd. for the year ended 31st March, 2024,
prepare Statement of Profit & Loss as per Part II of Schedule III of the Companies Act, 2013:
Particulars Debit Balance (`) Credit Balance (`)
Share Capital ... 10,00,000
Securities Premium ... 2,50,000
9% Debentures ... 5,00,000
Bank Overdraft ... 2,00,000
Dividend Payable ... 1,00,000
Provision for Tax ... 1,50,000
Fixed Assets 17,50,000 ...
Investments 4,50,000 ...
Sales ... 42,50,000
Sale of Scrap ... 50,000
Dividend ... 7,500
Opening Inventory of Materials 1,50,000 ...
Purchase of Materials 21,00,000 ...
Opening Inventory of WIP 75,000 ...
Opening Inventory of Finished Goods 1,25,000 ...
Wages 6,00,000 ...
Salaries 7,20,000 ...
Staff Welfare 60,000 ...
Interest on Debentures 50,000 ...
Interest on Bank Overdraft 20,000 ...
Depreciation 1,50,000 ...
Carriage Inwards 21,000 ...
Audit Fee 42,500 ...
Advertisement Expenses 75,000 ...
Telephone and Internet Expenses 24,000 ...
Courier Expenses 12,000 ...
Power and Electricity Expenses 30,000 ...
Bank Charges 3,000 ...
Administrative Expenses 30,000 ...
Marketing and Selling Expenses 20,000 ...
Total 65,07,500 65,07,500