Case/Source Based MCQs of Financial statements of a company class 12
Looking for important Case/Source Based MCQs with answers of Financial statement of a company chapter of accountancy class 12 CBSE, ISC and State Board.
We have compiled very important Case/Source Based multiple-choice questions of financial statements of a company chapter class 12
Case/Source Based Multiple Choice Questions of Financial Statements of a company class 12 with answers class 12
Sachin, Saurav and Rahul are civil engineers. They incorporated a real estate company called SSR Realty Ltd. In the year 2017, to engage in purchase and sale of properties (i.e., land, buildings, flats, apartments, etc.) Extracts realted to teh Balance Sheet of their company is given as follows, but is not arranged as per Schedule III, part I of Companies Act, 2013:
| Particulars | ₹ | Particulars | ₹ |
| Authorised Share Capital | 10,00,000 | Advance Tax | 20,000 |
| Prepaid Insurance | 1,40,000 | 9% Debentures | 2,30,000 |
| Securities Premium | 1,15,000 | Provision for Employees Retirement Benefits | 1,60,000 |
| Building (Held for sale) | 11,60,000 | Bank | 1,00,000 |
| Subscribed Share Capital | 7,20,000 | GST Payable | 90,000 |
| Advance from Customers | 1,35,000 | Investment in Mutual Funds (Investment made for 6 months) | ?? |
| Provident Fund Payable | 1,20,000 | Office Building | 2,60,000 |
| Revaluation Reserve | 1,15,000 | ||
| Issued Share Capital | 7,50,000 |
Based on the above information, answer the following questions:
(A) Balance to be shown in Balance Sheet as Shareholder’s Funds is
(a) ₹ 2,70,000
(b) ₹ 2,30,000
(c) ₹ 9,50,000
(d) ₹ 4,90,000
Ans – (c)
(B) Balance of Non-Current Liabilities is
(a) ₹ 2,30,000
(b) ₹ 3,90,000
(c) ₹ 5,20,000
(d) ₹ 1,60,000
Ans – (b)
(C) Non-current Assets in the Balance Sheet will be
(a) ₹ 2,60,000
(b) ₹ 14,20,000
(c) ₹ 11,60,000
(d) ₹ 16,60,000
Ans – (a)
(D) Investment in Mutual Funds is
(a) ₹ 5,000
(b) ₹ 25,000
(c) ₹ 1,25,000
(d) ₹ 65,000
Ans – (a)
Zaika Foods Limited, a food chain company has certain items which have not yet been categorised according to the Schedule III of Companies Act, 2013:
| Particulars | ₹ | Particulars | ₹ |
| Marketable Securities | 90,000 | Advance Tax | 60,000 |
| Equity Share Capital | 6,00,000 | Treasury Bills | 50,000 |
| 9% Preference Share Capital | 16,00,000 | Bank Overdraft | 30,000 |
| Advance to Suppliers | 1,75,000 | Interest Due on Calls-in-Arrears | 25,000 |
| Patented Recipes | 2,10,000 | Money Received against Share Warrants | 45,000 |
| Capital Reserve | 35,000 | Investments in Government Securities with maturity period less than 12 months | 1,15,000 |
| Stock of Raw Material | 1,25,000 |
Based on the above information, answer the following questions:
(A). Money Received against Share Warrants is to be shown under
(a) Non-Current Liabilities
(b) Current Assets
(c) Current Liabilities
(d) Shareholder’s Funds
Ans – (d)
(B). Identify an item from the options below which should be classified under Cash & Cash Equivalents in the Balance Sheet.
(a) Cash at Bank
(b) Bank Overdraft
(c) Investment in Government Securities with maturity period less than 12 months
(d) Marketable Securities
Ans – (a)
(C) Current Investments are
(a) ₹ 90,000
(b) ₹ 1,40,000
(c) ₹ 2,05,000
(d) ₹ 25,000
Ans – (c)
(D) Patented Recipes are classified as
(a) Current Assets
(b) Shareholder’s Funds
(c) Non-Current Assets
(d) None of these
Ans – (c)
Knowledge Park Ltd. requires your assistance in quantifying/classifying certain items as per Schedule III of the Comapnies Act, 2013:
| Particulars | ₹ | Particulars | ₹ |
| Equity Share Capital | 10,00,000 | Bank Overdraft | 70,000 |
| Ranchise Fee paid | 4,20,000 | Calls-in-Advance | 50,000 |
| Provision for Tax | 1,00,000 | Goodwill | 2,50,000 |
| Cash-in-Hand | 3,00,000 | Cheques-in-Hand | 6,00,000 |
| 9% Debentures | 5,00,000 | Building | 7,70,000 |
| Patents | 5,25,000 | Deposits with bank with more than 12 months maturity | 5,00,000 |
| Bonds | 6,50,000 | Computer Software | 2,10,000 |
| Loan from SBI for 3 years | 3,40,000 | Premises | 6,00,000 |
| 8% Preference Share Capital | 1,00,000 | Publishing Rights | 2,20,000 |
| Margin Money with Bank | 8,10,000 | ||
| Premium on Redemption of Debentures | 1,00,000 |
Based on the above information, asnwer the following questions.
(A) Cash and Cash Equivalent is
(a) ₹ 22,10,000
(b) ₹ 16,70,000
(c) ₹ 21,40,000
(d) ₹ 14,00,000
Ans – (d)
(B) Correct heading and Sub-heading for ‘Bank Deposits with more than 12 months maturity:
(a) Current Assets – Current Investments
(b) Non-Current Assets-Property, Plant and Equipment
(c) Current Assets – Cash & Cash equivalents
(d) Current Assets – Other Current Assets
Ans – (c)
(C) Total value of Intangible Assets is
(a) ₹ 12,05,000
(b) ₹ 11,00,000
(c) ₹ 21,55,000
(d) ₹ 16,25,000
Ans – (d)
(D) Long-term Borrowings to be shown in the Balance Sheet are
(a) ₹ 14,90,000
(b) ₹ 15,90,000
(c) ₹ 8,40,000
(d) None of these
Ans – (a)
Accountant of Glimpse India Private Ltd. resigned without completing the financial statements. Management is unsure how balances of certain heads are to be computed for the purpose of preparing the Balance Sheet as per Schedule III of Companies Act, 2013, In this regard, they have sought your assistance. Information for the purpose is as follows:
| Particulars | ₹ | Particulars | ₹ |
| Equity Share Capital | 5,00,000 | Bank Overdraft | 40,000 |
| Capital Work-in-Progress | 1,00,000 | Public Deposits | 2,50,000 |
| Retirement benefits Payable to Employees | 60,000 | Trademarks | 40,000 |
| Provision for Tax | 1,20,000 | Advances from Customers | 60,000 |
| Investment in Shares in Another Company | 50,000 | Furniture and Fittings | 6,00,000 |
| Share Forfeiture Account | 90,000 | Livestock | 1,60,000 |
| Securities Premium | 2,50,000 | 9% Debentures | 3,00,000 |
| Goodwill | 2,50,000 | Surplus, i.e., Balance in Statement of Profit & Loss | 2,60,000 |
| Building | 12,00,000 | Trade Payables | 3,10,000 |
| 10% Preference Share Capital | 20,00,000 |
Based on the above information, answer the following questions:
(A) Current Assets to be shown in the Balance Sheet is
(a) ₹ 31,00,000
(b) ₹ 44,00,000
(c) ₹ 18,40,000
(d) ₹ 11,50,000
Ans – (c)
(B) Value of Non-Current Assets is
(a) ₹ 44,70,000
(b) ₹ 24,00,000
(c) ₹ 31,50,000
(d) None of these
Ans – (b)
(C) Total of Equity and Liabilities of the company is
(a) ₹ 42,40,000
(b) ₹ 32,70,000
(c) ₹ 56,95,000
(d) ₹ 37,80,000
Ans – (a)
(D) Total value of Non-Current Liabilities in Equity and Liabilities part of Balance Sheet is
(a) ₹ 8,50,000
(b) ₹ 5,50,000
(c) ₹ 9,00,000
(d) ₹ 6,10,000
Ans – (d)
