Gujarat Board GSEB Class 12 Commerce Accounts Important Questions Part 2 Chapter 3 Company Final Accounts Important Questions and Answers.

GSEB Class 12 Accounts Important Questions Part 2 Chapter 3 Company Final Accounts

Answer the following in one sentence only :

Question 1.
As per section-129(1) of companies Act 2013, which concept is given by financial statements?
Answer:
As per section-129(1) of Companies Act 2013, Financial statements give an idea about true and fair view of the company.

Question 2.
As per section-129(1) of companies Act, 2013 to which companies the form of financial statements are not applicable?
Answer:
As per section-129(1) of companies Act, 2013, the form of financial statement are not applicable to electricity company, banking company and insurance company.

Question 3.
What is meant by financial year?
Answer:
According to section-2(41) of the companies Act, 2013, financial year in relation to any company means the period ending on the 31st March of every year.

Question 4.
Why financial statements are called the historical statements?
Answer:
Financial statements tire called the historical statements becaues they are related to past period.

Question 5.
In which form the figures are expressed in financial statements?
Answer:
The figures stated in financial statements are expressed in terms of money.

Question 6.
Which account shows the financial performance of the company?
Answer:
Profit and loss account shows the financial performance of the company.

Question 7.
What is called as operating cycle?
Answer:
The process of conversion of cash into raw material, conversion of raw material into finished goods. Conversion of finished goods into debtor and finally conversion of debtor into cash is called as operating cycle.

Question 8.
What is included in shareholders’ funds?
Answer:
In shareholders’ funds

• Share capital and
• Reserves and surplus are included.

Question 9.
When changes in stock and purchase are not recorded in profit and loss statement?
Answer:
When cost of goods sold are given then changes in stock and purchase are not recorded in profit and loss statement, because cost of goods sold = opening stock + purchase – closing stock.

Question 10.
What is trade receivable?
Answer:
During the normal curse of business, the amount due on account of goods sold or services rendered is called trade receivable.

Question 11.
What is trade payable?
Answer:
During the normal course of business, the amount due on account of goods purchased or service received is called trade payable.

Question 12.
What is included in non-current investment?
Answer:
Following investments are included in non-current investments

• Provident fund investments
• Debenture redemption fund investments
• Shares of subsidiary company
• Investment more than 12 months includes shares and debentures of other company, fixed deposits with bank, government securities, units of mutual fund.

Select right answer for each question :

Question 1.
As per which section of Companies Act, 2013, financial statements shall give a true and fair view of company?
(A) Section-129(1)
(B) Section-129(2)
(C) Section-192(1)
(D) Section-192(2)
Answer:
(A) Section-129(1)

Question 2.
According to section – 2(41) of the Companies Act,2013, financial year in relation to any company or body corporate means the period ending on ………………….. .
(A) 31st December of every year
(B) 30th June of every year
(C) 31st March of every year
(D) 30th September of every year
Answer:
(C) 31st March of every year

Question 3.
Financial statements are known as …………………. .
(A) Historical statement
(B) Trader statement
(C) Social statement
(D) Political statement
Answer:
(A) Historical statement

Question 4.
In which part of schedule-III of the Companies Act, 2013 the form of balance sheet is given?
(A) First
(B) Second
(C) Third
(D) Fourth
Answer:
(A) First

Question 5.
Which of the following is included in non-current liabilities of the balance sheet of a company?
(A) Trade Payables
(B) Short-term Borrowings
(C) Long-term Borrowings
(D) Short-term Provisions
Answer:
(C) Long-term Borrowings

Question 6.
Which of the following is not included in current liabilities of the balance sheet of a company?
(A) Trade Payables
(B) Long-term Provisions
(C) Short-term Borrowings
(D) Short-term Provisions
Answer:
(B) Long-term Provisions

Question 7.
Which of the following in included in Non-current assets of the balance sheet of a company ?
(A) Intangible Assets
(B) Trade Receivables
(C) Short-term Load and Advances
(D) Cash and cash equivalents
Answer:
(A) Intangible Assets

Question 8.
Which of the following is not included in current assets of the balance sheet of a company?
(A) Tangible Assets
(B) Bills Receivables
(C) Short-term Load and Advances
(D) Inventories
Answer:
(A) Tangible Assets

Question 9.
Which of the following is included in long-term borrowings?
(A) Provident Fund
(B) Workers’ Saving fund
(C) Public Deposit
(D) Cash credit
Answer:
(C) Public Deposit

Question 10.
Which of the following is not included in long term provisions?
(A) Provident Fund
(B) Workers’ Saving fund
(C) Employees Profit sharing fund
(D) Tax provision
Answer:
(D) Tax provision

Question 11.
Which type of assets computer software is?
(A) Current Assets
(B) Tangible Assets
(C) Intangible Assets
(D) Fictitious Assets
Answer:
(C) Intangible Assets

Question 12.
Which of the following is included in fixed intangible assets?
(A) Leasehold Assets
(B) Vehicles
(C) Software
(D) Tools
Answer:
(C) Software

Give answer of the following questions :
Question 1.
How will you show the following balances in balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Equity share capital
(2) Preference share capital
(3) Securities premium
(4) Calls in arrears
(5) Share forfeiture A/c
(6) Loss as per statement of profit and loss
(7) Provident fund
(8) Unclaimed dividend
(9) Bond
(10) Advance received from debtors
Answer:

Question 2.
How will you show following balance sheet of a company as per schedule-III of balances in Companies Act, 2013?
(1) Debenture
(2) Debenture redemption reserve
(3) Public deposit
(4) Term loan
(5) Bills payable
(6) Bank overdraft
(7) Calls in advance
(8) Proposed dividend
(9) Provision for gratuity
(10) Workmen accident compensation fund
Answer:

Question 3.
How will you show following balances in balance sheet of a company as per schedule-III of Companies Act1 2013?
(1) Lease-hold Assets
(2) Shares of subsidiary company
(3) Trademark
(4) Short-term investments
(5) Custom deposit
(6) Debtors
(7) Provident fund investments
(8) Semi-finished goods
(9) Machinery
(10) Pre-paid insurance premium
Answer:

Question 4.
How will you show following balances In balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Loan to employees
(2) Prepaid taxes
(3) Cheque received from debtors
(4) Stores and spare parts
(5) Goodwill
(6) Computer software
(7) Interest accrued on investment
(8) Advance given to creditors
(9) Electricity deposit
(10) Bank balance
Answer:

Question 5.
How will you show following balances in balance sheet of a company as per schedule-III of Companies Act, 2013?
(1) Loan to director (temporary)
(2) Unpaid interest on debenture
(3) Cash credit from bank
(4) Machinery (to be sold next year)
(5) Computer
(6) Units of mutual fund (For short term)
(7) Debenture redemption premium (Redeemable during next year)
(8) Bank overdraft
(9) Debenture discount (to be written off next year)
(10) Rent received in advance
Answer:

Question 6.
How will you show following balances in profit and loss statement of a company as per schedule-III of Companies Act, 2013?
(1) Sales
(2) Bank charges
(3) Salary
(4) Depreciation
(5) Audit fee
(6) Bad debt recovered
(7) Interest on Bank overdraft
(8) Rent
(9) Profit on sale of assets
(10) Written off debenture discount
(11) Stationery expenses
(12) Advertisement expenses
(13) Contribution to provident fund
(14) Interest received
(15) Bonus to employee
(16) Income from scrap
(17) Sale of Newspapers
(18) Selling expenses
(19) Bank interest paid
(20) Written off bad debts
Answer: