2. CHAPTER 1 : ASSIGNMENT 2 WITH ANSWERS

ANALYSIS OF FINANCIAL  STATEMENTS

Dear Boys,

For more practice and also for clarity and learning purpose, assignment 2 has been drafted. 

All work to be done in accountancy fair register. 

Assignment 2

Classify the following items of the balance sheet of a company under

 Major Heads and Sub-Heads:

1.prepaid insurance
2.provision for employee benefit
3. proposed dividend
4. advance tax
5. Brand
6. Public deposits
7. Share forfeited account
8. Negative balance as per statement in profit and loss
9. GST payable
10. Models
11. short term deposits payable on demand
12. Work in progress
13. License and franchise
14. Debentures with maturity period in current year
15.patents to be written off within 12 months
16.Acceptances
17. Bonds
18. Provident Fund
19. Provision for depreciation
20. Outstanding expenses  

Answers to the Assignment 2

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

1.prepaid insurance - current assets, other current assets
2.provision for employee benefit - non current liabilities, long term provisions
3. proposed dividend- contingent liability to be disclosed in notes to accounts, note on the face of the balance sheet
4. advance tax - current assets ,other current assets
5. Brand - non current assets , fixed assets (intangible)
6. Public deposits - non current liabilities, long term borrowings
7. Share forfeited account - shareholders fund, share capital
8. Negative balance as per statement in profit and loss - shareholders funds,  reserve and surplus (negative item)
9. GST payable - current liabilities,  other current liabilities
10. Models - non current assets,  fixed assets (intangible)
11. short term deposits payable on demand- current liabilities, short term borrowings
12. Work in progress- current assets, inventories
13. License and franchise - non current assets ,fixed assets (intangible)
14. Debentures with maturity period in current year- current liabilities, other current liabilities
15.patents to be written off within 12 months- current assets ,other current assets
16.Acceptances- current liabilities, trade payables
17. Bonds- non current liabilities, long term borrowings
18. Provident Fund -non current liabilities, long term provisions
19. Provision for depreciation- deducted from tangible assets shown as notes to accounts, note on the face of balance sheet
20. Outstanding expenses- current liabilities ,other current liabilities