1.CHAPTER 1 : ASSIGNMENT 1 WITH ANSWERS

ANALYSIS OF FINANCIAL  STATEMENTS

Dear Boys,

For the practice, clarity and learning purpose,
 Assignment 1 has been drafted. 

All work to be done in accountancy fair register. 

Task 

Assignment 1 

Classify the following items of the balance sheet of a company under Major Heads and Sub-Heads:

Example:
Item                                Major Head           Sub-Head
Stores and spare parts    current assets         inventories

1. 8% debentures
2. equity share capital
3. Security premium reserve

4. preliminary expenses
5. statement of profit and loss (cr.)

6. Discount on issue of 8% debentures

 7.loose tools
8. Bank balance cash in hand
9.depreciation on fixed assets
10. Stock in Trade
11. bills receivables
12. goodwill
13. provision for tax
14. recipes/ formula
15. advance tax
16. bank overdraft
17. short term loans and advances
18. livestock
19. Accrued interest on calls in advance
20. capital work in progress

Answers to the  Assignment 1 ..
Classify the following items of the balance sheet of a company under Major Heads and Sub-Heads:

Example:
Item Major Head Sub-Head (if any)
Stores and spare parts current assets inventories

1.8% debentures - non current liabilities, long term borrowings
2.equity share capital - shareholders funds , share capital
3. Security premium reserve - shareholders funds,  reserve and surplus
4.preliminary expenses - shareholders fund, reserve and surplus (negative item)
5.statement of profit and loss (cr.) - shareholders funds,  reserve and surplus
6. Discount on issue of 8% debentures- shareholders funds reserve and surplus (negative item) 7.loose tools -current asset, inventories
8.  Bank balance cash in hand - current assets, cash and cash equivalents
9.depreciation on fixed assets- deducted from tangible assets shown as notes to accounts, note on the face of balance sheet
10. Stock in Trade - current asset, inventories
11. bills receivables - current assets, trade receivables
12. goodwill - non current assets, fixed assets (intangible)
13. provision for tax - current liabilities, short term provisions
14. recipes/ formula - non current assets,  fixed asset ( intangible)
15. advance tax - current assets, other current assets
16. bank overdraft - current liabilities, short term borrowings
17. short term loans and advances - current assets, short term loans and advances
18.  livestock - non-current Assets, fixed assets (tangible)
19. Accrued interest on calls in advance -current liabilities ,other current liabilities
20. capital work in progress- non current assets ,fixed assets