ANALYSIS OF FINANCIAL STATEMENTS - Chapter 1
Dear Boys,
Given below is the Balance Sheet of the company and henceforth the items appearing under the headings and subheadings of the Balance sheet.
Task 1.
Note down the details in your registers, start memorising over a period of time.
I.Equity and Liabilities
1.Non current assets
(a)Fixed assets
(i)tangible assets
(ii)intangible assets
(iii)capital work in progress
(iv)intangible assets under development
(b)Non current investments
(c) Deferred tax assets (net)
(d) Long term loans and advances (e)Other non current assets
2. Current assets
(a)Current investments
(b)Inventories
(c)Trade receivables
(d)Cash and cash equivalents
(e)Short term loans and advances
(f)Other current assets
Total
*capital reserve*capital redemption reserve
*security premium reserve
*debenture redemption reserve *revaluation reserve*stock option outstanding account *other Reserves
*surplus balance in statement of profit and loss( disclosing appropriation such as dividend bonus shares transfer to from reserve etc)*surplus, balance in profit and loss (Dr.) negative in Reserves and surplus*general reserve*tax reserve *subsidy reserve *workers compensation reserve*investment fluctuation reserve
Non current liabilities
Long term borrowings
*Debentures
*bonds
*long term loans long
*term deposits
*public deposits
*term loans from Bank
Other long term liabilities
*Trade payables to be settled beyond 12 months
*premium on redemption of debenture
Current liabilities
Short term borrowings
*bank overdraft
*loans repayable on demand from banks and other parties
*short term deposits payable on demand
Non current assets
Fixed assets
Tangible assets
*land
*buildings
*plant and equipment
*furniture and fixtures
*vehicles
*office equipment
*livestock
*computer and related equipment
Intangible assets
*Goodwill
*brand /trademarks
*computer software
*mining rights
*mastheads and publishing titles
*patents and other intellectual property rights
*recipes ,formulae models ,designs and prototypes
*licences and franchise
Intangible Assets Under Development
Long term loans and advances
*Capital advances
*security deposits example for telephones, electricity etc.
Other non current assets
*trade receivables( debtors and bills receivable) to be realised beyond 12 months or operating cycle
* unamortized expenses or losses,
* insurance claim receivable
*amount due for Asset Sold etc..
Current assets
Current Investments
*marketable securities
*treasury bills
*debenture redemption investment
* investment in equity instrument, preference shares, government securities, debentures ,mutual funds with the maturity period less than 12 months
C
Given below is the Balance Sheet of the company and henceforth the items appearing under the headings and subheadings of the Balance sheet.
Task 1.
Note down the details in your registers, start memorising over a period of time.
ANALYSIS OF FINANCIAL STATEMENTS
Chapter 1
Balance Sheet of CompanyI.Equity and Liabilities
1.
Shareholders’ Funds
(a) Share capital
(b) Reserves and surplus
(c) Money received against share warrants
2. Share application money pending allotment
3. Non current liabilities
(a) Long term borrowings
(b) Deferred tax liabilities (net)
(c) Other long term liabilities
(d) Long term provisions
4.Current liabilities
(a)Short term borrowings
(b)Trade payables
(c)Other current liabilities
(d)Short term provisions
Total
II.Assets
(a) Share capital
(b) Reserves and surplus
(c) Money received against share warrants
2. Share application money pending allotment
3. Non current liabilities
(a) Long term borrowings
(b) Deferred tax liabilities (net)
(c) Other long term liabilities
(d) Long term provisions
4.Current liabilities
(a)Short term borrowings
(b)Trade payables
(c)Other current liabilities
(d)Short term provisions
Total
II.Assets
1.Non current assets
(a)Fixed assets
(i)tangible assets
(ii)intangible assets
(iii)capital work in progress
(iv)intangible assets under development
(b)Non current investments
(c) Deferred tax assets (net)
(d) Long term loans and advances (e)Other non current assets
2. Current assets
(a)Current investments
(b)Inventories
(c)Trade receivables
(d)Cash and cash equivalents
(e)Short term loans and advances
(f)Other current assets
Total
ITEMS APPEARING UNDER BALANCE SHEET
HEADINGS
EQUITY & LIABILITIES
Share Capital
* Forfeited Shares (added to the subscribed capital)
*Calls in arrears (subtracted from subscribed but not fully paid)
Share Capital
* Forfeited Shares (added to the subscribed capital)
*Calls in arrears (subtracted from subscribed but not fully paid)
Reserves and surplus
*capital reserve*capital redemption reserve
*security premium reserve
*debenture redemption reserve *revaluation reserve*stock option outstanding account *other Reserves
*surplus balance in statement of profit and loss( disclosing appropriation such as dividend bonus shares transfer to from reserve etc)*surplus, balance in profit and loss (Dr.) negative in Reserves and surplus*general reserve*tax reserve *subsidy reserve *workers compensation reserve*investment fluctuation reserve
Non current liabilities
Long term borrowings
*Debentures
*bonds
*long term loans long
*term deposits
*public deposits
*term loans from Bank
*long
term loans from Bank / other parties
*long
term loans and advances
*mortgage loan
Other long term liabilities
*Trade payables to be settled beyond 12 months
*premium on redemption of debenture
* advances from
customers (long term)
Long term provisions
*provision for employee benefits/ retirement benefits payable to employees example Provident fund *provision for warranties
Long term provisions
*provision for employee benefits/ retirement benefits payable to employees example Provident fund *provision for warranties
* provision for gratuity
Current liabilities
Short term borrowings
*bank overdraft
*loans repayable on demand from banks and other parties
*short term deposits payable on demand
* cash
credit
Trade payables
*creditors
*bills payable for acceptance to be settled within 12 months
Other current liabilities
*Unpaid /unclaimed dividend
*interest accrued and due/not due on borrowings
*income received in advance (example advance from customers)/ Unearned income
*Calls in advance and interest on calls in advance
*Outstanding expenses
*provident fund payable /ESI payable/ GST payable
*current maturities of long term debts
*application money received for allotment of securities and due for refund and interest due thereon
*unpaid matured deposits and interest thereon
*unpaid matured debentures and interest thereon
Short term provisions
*provision for tax
*provision for doubtful debts
Trade payables
*creditors
*bills payable for acceptance to be settled within 12 months
Other current liabilities
*Unpaid /unclaimed dividend
*interest accrued and due/not due on borrowings
*income received in advance (example advance from customers)/ Unearned income
*Calls in advance and interest on calls in advance
*Outstanding expenses
*provident fund payable /ESI payable/ GST payable
*current maturities of long term debts
*application money received for allotment of securities and due for refund and interest due thereon
*unpaid matured deposits and interest thereon
*unpaid matured debentures and interest thereon
Short term provisions
*provision for tax
*provision for doubtful debts
ASSETS
Non current assets
Fixed assets
Tangible assets
*land
*buildings
*plant and equipment
*furniture and fixtures
*vehicles
*office equipment
*livestock
*computer and related equipment
Intangible assets
*Goodwill
*brand /trademarks
*computer software
*mining rights
*mastheads and publishing titles
*patents and other intellectual property rights
*recipes ,formulae models ,designs and prototypes
*licences and franchise
Intangible Assets Under Development
Patents
, intellectual property rights etc. which are being developed by the company.
Non current investments
*trade investments are investment made by a company in shares or debentures of another company, not being its subsidiary, to promote its own trade and business.
* other investments are those investments which are not trade investments.
Non current investments
*trade investments are investment made by a company in shares or debentures of another company, not being its subsidiary, to promote its own trade and business.
* other investments are those investments which are not trade investments.
Long term loans and advances
*Capital advances
*security deposits example for telephones, electricity etc.
Other non current assets
*trade receivables( debtors and bills receivable) to be realised beyond 12 months or operating cycle
* unamortized expenses or losses,
* insurance claim receivable
*amount due for Asset Sold etc..
Current assets
Current Investments
*marketable securities
*treasury bills
*debenture redemption investment
* investment in equity instrument, preference shares, government securities, debentures ,mutual funds with the maturity period less than 12 months
Inventory
*stock of raw materials
*work in progress
*stock of finished goods
*stock in trade (i.e.goods required for trading)
* stores and spares
* loose tools
* goods in transit
Trade receivables
*debtors and bills receivables
* provision for doubtful debts (deduction from trade receivables)
Short Term Loans And Advances
* Loans Provided payable on demand
Cash and cash equivalents
*balance with banks; cheques drafts on hand and cash on hand
Other current assets
*prepaid expenses example unexpired insurance ,advance to suppliers
*accrued incomes example interest accrued on investments
*advance tax
*Goodwill ,patents etc. to be written off within 12 months
*interest due on calls in arrears
* interest receivable
*dividend receivable
*unamortized expense to be written off within 12 months
Contingent liabilities (Notes to Accounts)
*claims against company which are not accepted by the the company
*Proposed dividend for the current year
*Arrear of fixed cumulative dividend
* Bill receivable discounted from Bank not due for payment
*stock of raw materials
*work in progress
*stock of finished goods
*stock in trade (i.e.goods required for trading)
* stores and spares
* loose tools
* goods in transit
Trade receivables
*debtors and bills receivables
* provision for doubtful debts (deduction from trade receivables)
Short Term Loans And Advances
* Loans Provided payable on demand
Cash and cash equivalents
*balance with banks; cheques drafts on hand and cash on hand
Other current assets
*prepaid expenses example unexpired insurance ,advance to suppliers
*accrued incomes example interest accrued on investments
*advance tax
*Goodwill ,patents etc. to be written off within 12 months
*interest due on calls in arrears
* interest receivable
*dividend receivable
*unamortized expense to be written off within 12 months
Contingent liabilities (Notes to Accounts)
*claims against company which are not accepted by the the company
*Proposed dividend for the current year
*Arrear of fixed cumulative dividend
* Bill receivable discounted from Bank not due for payment
C
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