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1.14 Analysis of Financial Statements—CBSE XII
5. Employees Benefit Expenses
Wages 6,00,000
Salaries 7,20,000
Staff Welfare 60,000
13,80,000
6. Finance Costs
Interest on Debentures 50,000
Interest on Bank Overdraft 20,000
70,000
7. Other Expenses
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
2,57,500

Unsolved Questions

1. Give the heads under which the following items will be shown in a company’s Balance Sheet:
(i) Debentures; (ii) Interest Accrued on Investments; (iii) Goodwill; and (iv) Bills of Exchange.
[Ans.: Head: Sub-head, if any: (i) Non-current Liabilities: Long-term Borrowings;
(ii) Current Assets: Other Current Assets; (iii) Non-current Assets:
Property, Plant and Equipment and Intangible Assets—Intangible Assets;
(iv) Current Assets: Trade Receivables.]
2. Calculate Cost of Materials Consumed from the following:
Opening Inventory of: Materials ` 4,50,000; Finished Goods ` 75,000; Stock-in-Trade ` 2,00,000; Closing
Inventory of: Materials ` 4,00,000; Finished Goods ` 65,000; Stock-in-Trade ` 1,75,000; Opening WIP
` 10,000; Closing WIP ` 15,000; Purchases during the year: Raw Material ` 20,00,000; Stock-in-Trade
` 9,00,000. [Ans.: ` 20,50,000.]
3. Under which line item of the financial statements following items will be shown:
(i) Sale of Scrap; (ii) Gain (Profit) on Sale of Vehicle; (iii) Deposits; (iv) Loss on Issue of Debentures
Written off; (v) Gratuity Payable at the Time of Retirement; (vi) Workmen Compensation Reserve;
(vii) Carriage paid on Sales; and (viii) Selling and Distribution Expenses?
[Ans.: Revenue from Operations: (i); Other Income: (ii); Long-term Borrowings: (iii);
Other Expenses: (iv); Long-term Provisions: (v); Reserves and Surplus: (vi);
Other Expenses: (vii) and (viii).]
4. Under which head following revenue items of financial company will be classified or shown:
(i) Gain (Profit) on Sale of Fixed Asset; (ii) Fee Received for Arranging Loans; (iii) Interest on Loans
Given; (iv) Gain (Profit) on Sale of Investments; and (v) Sale of Miscellaneous Items?
[Ans.: Revenue from Operations: (ii) Fee Received for Arranging Loans;
(iii) Interest on Loans Given; (iv) Gain (Profit) on Sale of Investments;
Other Income: (i) Gain (Profit) on Sale of Fixed Asset; (v) Sale of Miscellaneous Items.]