TERM - I : 2024-25

WORKSHEET - I
SUBJECT: ACCOUNTANCY
Std. XII Total Marks
Date: Time Duration

 Choose the correct options: (Each questions contains 1 Marks)

1. (b) Static analysis
2. (a) To measure the financial strength
3. (d) Goodwill, Motor Vehicles
4. (a) ₹ 1,70,000
5. (a) Both Assertion and Reason are true and Reason is the correct explanation of
Assertion
 Answer the following questions: (Each questions contains 3 Marks) (2x3=6)
1. State the importance of financial statements to

Following are the importance of financial statements for:

1. Shareholders:
For a shareholder, a financial statement is helpful in determining viability and profit
making capacity of a business. It provides businesses with sufficient data to analyse the
financial health and performance of the business.
2. Creditors:
A financial statement is essential for a creditor to understand the credit worthiness of the
business along with liquidity. It helps them to decide whether further investments can be
done for this business.
3. Government:
A financial statement helps government in determining GDP, national income, industrial
growth etc. which leads to formulation of various policies and addressing problems like
poverty and unemployment etc.
4. Investors:
For Investors who have invested or those planning to invest, a financial statement is
necessary. Financial statement helps determining the prospects and viability of new
investments.

Page | 1
 2.
(i) Loose Tools Current Assets Inventories
(ii) Uncalled liability on partly paid-up Contingent Liability and Capital Commitments
shares Capital Commitments
(iii) Debentures Redemption Reserve Shareholders Funds Reserve and surplus
(iv) Mastheads and publishing titles Non-Current Assets Fixed Assets –
Intangible assets
(v) 10% debentures Non-Current Liabilities Long-Term Borrowings
(vi) Proposed dividend Current Liabilities Short-Term Provisions

3. Financial Statements are very useful to an organization but still, they suffer from the
following limitations:

1. Historical Data: Financial Statements are prepared on the basis of historical cost. Since
the purchasing power of money is changing, the values of assets and liabilities shown in
financial statement do not reflect current market situation.
2. Assets may not realise: Accounting is done on the basis of certain conventions. Some of
the assets may not realize the stated values, if the liquidation is forced on the company.
Assets shown in the balance sheet reflect merely unexpired or unamortised cost.
3. Bias: Financial statements are the outcome of recorded facts, accounting concepts and
conventions used and personal judgments, made in different situations by the
accountants. Hence, bias may be observed in the results, and the financial position
depicted in financial statements may not be realistic.
4. Aggregate Information: Financial statements show aggregate information but not
detailed information. Hence, they may not be help the users in decision-making much.
5. Vital Information Missing: Balance sheet does not disclose information relating to loss
of markets, and cessation of agreements, which have vital bearing on the enterprise.
6. No Qualitative Information: Financial statements contain only monetary information
but not qualitative information like industrial relations, industrial climate, labour
relations, quality of work, etc.
7. They are Only Interim Reports: Profit and loss account discloses the profit/loss for a
specified period. It does not give an idea about the earning capacity over time similarly,
the financial position reflected in balance sheet is true at that point of time, the likely
change on a future date is not depicted.

4. NOTES TO ACCOUNTS
Note Amount
Particulars
No. ( `)
Employees Benefit Expenses

Wages 2,70,000
Salaries 3,60,000
Staff Welfare Expenses 60,000 6,90,000

Page | 2
 Amount to be shown in the Statement of Profit and 6,90,000
Loss

*Amount spent on promotion of business and printing & Stationary expenses are not included in
Employees Benefit Expenses.
5. New current assets = 3,00,000 + 20,000
New current liabilities = 1,40,000 + 20,000 = ₹ 1,60,000
Current Ratio = Current Assets
Current liabilities
= 320000
160000 =2:1
 Long answered questions: (Each questions contains 4 Marks)

1.

2.

Answer:

Balance Sheet
as at ...

Page | 3
 Note Amount
Particulars
No. (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital 1 32,00,000
b. Reserves and Surplus 2 6,00,000
2. Non-Current Liabilities
a. Long-term Borrowings 3 12,00,000
3. Current Liabilities
a. Other Current Liabilities 4 3,00,000
b. Short-term Borrowings 5 4,00,000
c. Short-term Provisions 6 5,00,000
Total 62,00,000

II. Assets
1. Non-Current Assets
a. Fixed Assets
i. Tangible Assets 7 30,00,000
ii. Intangible Assets
b. Non-Current Investments
2. Current Assets
a. Inventories 14,00,000
b. Current Investments 8,00,000
c. Cash and Cash Equivalents 10,00,000
Total 62,00,000

Notes to Accounts
Amount
Particulars
(Rs)
1. Share Capital
Equity Share Capital 20,00,000
Preference Share Capital 12,00,000 32,00,000
32,00,000

2.Reserve and Surplus

Debenture Redemption Reserve 6,00,000

3. Long-term Borrowings
Public Deposits 12,00,000

4. Other Current Liabilities

Outstanding Expenses 3,00,000

Page | 4
5. Short-term Borrowings
Loan from Zaveri Ltd. 4,00,000

6. Short-Term Provisions
Proposed Dividend 5,00,000

7. Tangible Assets
Land and Building 20,00,000
Plant and Machinery 10,00,000 30,00,000
30,00,000

3.
ITEMS
Surplus, i.e. Balance in Statement
of Profit and Loss (Dr.)
Interest accrued and due on
debentures
Computer Software under
development
Interest accrued on Investments
MAJOR HEAD SUB-HEAD
Shareholder’s Funds Reserves and Surplus (as
negative figure)
Current Liabilities Other Current Liabilities
Non-current Assets Fixed Assets (Intangible Assets
under development)
Current Assets Other Current Assets

4. NOTES TO ACCOUNTS

Note
Particulars ( `)
No.
Change in Inventories of Finished Goods, WIP
and Stock-in-Trade
(a) Finished Goods
Opening Inventory 5,00,000
Less: Closing Inventory 5,50,000 (50,000)
(50,000)
(b) Work-in-Progress
Opening Inventory 4,50,000
Less: Closing Inventory 4,25,000 25,000
25,000
(c) Stock-in-Trade
Opening Inventory 6,50,000
Less: Closing Inventory 6,00,000 50,000
50,000
Net Change (a+b+c) 25,000

Page | 5
 5. (i) Debt equity ratio

Long-term Debts = 6% Debentures + 9% Loan

= 300000 +100000 = ₹ 400000
Shareholders Funds = Paid-up Share Capital + Debenture Redemption Reserve
= 600000 + 200000 = ₹ 800000
(ii) Working Capital Turnover Ratio

*Working Capital = Current Assets** – Current Liabilities***

= 12,00,000 – 4,00,000
= ₹ 8 00 POO
**Current Assets = Other Current Assets + Closing Inventory
= 1100000 + 1,00,000
= ₹ 12,00,000
***Current Liabilities = ₹ 4,00,000

Long answered questions: (Each questions contains 6 Marks)

1.

Page | 6
Page | 7
2.

3. (i) From the following, calculate ‘Trade receivables turnover ratio”.

Total revenue from operations for the year – ₹ 8,40,000
Cash revenue from operations – 40% of credit revenue from operations
Closing trade receivables – ₹ 2,00,000
Excess of closing trade receivables over opening trade receivables ₹ 80,000
(ii) From the following information calculate ‘Interest coverage ratio’
Profit after interest and tax – ₹ 4,97,000
Rate of income tax – 30%
12% debentures – ₹ 6,00,000 (All India (C) 2016)

Page | 8
Answer:

Let, credit revenue from operations be x

Cash revenue from operations be x × 40% = 0.4x
Total Revenue from Operations = Cash Revenue from Operations + Credit Revenue
from Operations
8,40,0 = 0.4x + x
8,40,000 = 14x
‘Credit revenue from operations ⇒ x ⇒ 6,00,000
Average Trade Receivables

Opening trade receivables

= 200000 – 80,000 = ₹ 1,20,000
(ii) Interest Coverage Ratio

Page | 9