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CBSE · Class 12 · Accountancy

Financial Statements of a Company

Standard difficulty · 20 questions · 40 marks · Time: 41 minutes

Name: Date: Score: ____ / 40

Show your working for Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
The format of a company’s balance sheet is given in:
  1. Table F
  2. the Partnership Act
  3. the Income Tax Act
  4. Schedule III of the Companies Act, 2013
2.
In a company’s balance sheet (Schedule III), “bank overdraft” is shown under:
  1. Current liabilities — Short-term borrowings
  2. Non-current assets — Non-current investments
  3. Current assets — Other current assets
  4. Non-current assets — Intangible assets
3.
In a company’s Statement of Profit and Loss, “rent paid” is shown under:
  1. Depreciation and amortisation expense
  2. Other income
  3. Employee benefits expense
  4. Other expenses
4.
Which of these is shown under “Shareholders’ funds” in a company’s balance sheet?
  1. capital reserve
  2. bank overdraft
  3. loose tools
  4. debentures
5.
Greenleaf Ltd: revenue from operations ₹22,00,000, other income ₹21,000 and total expenses ₹18,91,000. What is the profit before tax?
  1. ₹2,64,000
  2. ₹3,09,000
  3. ₹3,30,000
  4. ₹3,72,000
6.
Silverline Ltd has a profit before tax of ₹2,90,000, and tax is 25%. What is the profit for the period (after tax)?
  1. ₹2,03,000
  2. ₹2,90,000
  3. ₹72,500
  4. ₹2,17,500
7.
Bluebell Ltd: share capital ₹9,00,000, general reserve ₹84,000, surplus (balance in Statement of Profit and Loss) ₹72,000 and debentures ₹4,00,000. What are the total shareholders’ funds?
  1. ₹14,56,000
  2. ₹9,84,000
  3. ₹9,00,000
  4. ₹10,56,000
8.
Northstar Ltd: trade payables ₹1,21,000, short-term provisions ₹49,000, bank overdraft ₹12,000 and debentures ₹1,00,000. What are the total current liabilities?
  1. ₹1,82,000
  2. ₹1,70,000
  3. ₹2,82,000
  4. ₹1,33,000
Section B — Short answer8 × 2 = 16 marks
9.
What are financial statements?
10.
Explain each term: (a) operating cycle (b) recorded facts
11.
Under which main head and sub-head is each shown in a company’s balance sheet? (a) stock of finished goods (b) provision for tax
12.
Maple Ltd has property, plant and equipment ₹11,98,000, intangible assets ₹47,000, non-current investments ₹57,000, inventories ₹55,000, trade receivables ₹64,000 and cash and cash equivalents ₹11,000. Find (a) the non-current assets (b) the current assets (c) the balance sheet total.
13.
Sunrise Ltd sold goods worth ₹9,00,000, received returns of ₹46,000 and sold scrap for ₹10,000 (scrap sales are other operating revenue). Find the revenue from operations.
14.
Brightway Ltd has securities premium ₹76,000, general reserve ₹82,000 and a credit balance of ₹28,000 in the Statement of Profit and Loss (surplus). Find the total of “Reserves and surplus”.
15.
Silverline Ltd has a profit before tax of ₹2,90,000, and tax is 25%. Find (a) the tax expense (b) the profit for the period.
16.
Brightway Ltd has share capital ₹4,00,000, reserves and surplus ₹1,51,000, long-term borrowings ₹3,00,000, trade payables ₹87,000 and short-term provisions ₹21,000. Find (a) the shareholders’ funds (b) the current liabilities (c) the balance sheet total.
Section C — Word problems4 × 4 = 16 marks
17.
Explain the nature of financial statements.
18.
Prepare the balance sheet of Brightway Ltd (Schedule III, main heads and sub-heads) from: equity share capital ₹8,00,000, general reserve ₹32,000, surplus ₹34,000, 10% debentures ₹4,00,000, creditors ₹48,000, provision for tax ₹38,000, machinery ₹11,15,000, goodwill ₹78,000, long-term investments ₹31,000, stock ₹31,000, debtors ₹30,000 and cash at bank ₹67,000.
19.
Prepare the Statement of Profit and Loss of Seabreeze Ltd from: revenue from operations ₹27,00,000, other income ₹10,000, cost of materials consumed ₹18,03,000, employee benefits expense ₹3,00,000, finance costs ₹12,000, depreciation ₹25,000, other expenses ₹2,20,000; tax at 25%.
20.
Match each with its main head in the balance sheet: (a) cash at bank (b) calls in advance (c) debentures. Choose from: Non-current liabilities; Current assets; Current liabilities.
AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Accountancy

Answer key

Financial Statements of a Company · AW-12AC-CFS-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) Schedule III of the Companies Act, 2013—
2(a) Current liabilities — Short-term borrowings—
3(d) Other expenses—
4(a) capital reserve—
5(c) ₹3,30,000₹22,00,000 + ₹21,000 − ₹18,91,000
6(d) ₹2,17,500₹2,90,000 − ₹72,500
7(d) ₹10,56,000₹9,00,000 + ₹84,000 + ₹72,000
8(a) ₹1,82,000₹1,21,000 + ₹49,000 + ₹12,000
9The end products of accounting: the balance sheet, statement of profit and loss, notes to accounts and cash flow statement of an enterprise.—
10(a) the time between buying materials and realising cash from selling the products (b) figures taken from the accounting records at cost—
11(a) Current assets — Inventories (b) Current liabilities — Short-term provisions—
12(a) ₹13,02,000; (b) ₹1,30,000; (c) ₹14,32,000(a) ₹11,98,000 + ₹47,000 + ₹57,000 (b) ₹55,000 + ₹64,000 + ₹11,000
13₹8,64,000₹9,00,000 − ₹46,000 + ₹10,000
14₹1,86,000₹76,000 + ₹82,000 + ₹28,000 (a debit balance is shown as a negative item under reserves and surplus)
15(a) ₹72,500; (b) ₹2,17,500(a) ₹2,90,000 × 25/100 (b) ₹2,90,000 − ₹72,500
16(a) ₹5,51,000; (b) ₹1,08,000; (c) ₹9,59,000(c) ₹5,51,000 + ₹3,00,000 + ₹1,08,000
17They are made from recorded facts, follow accounting conventions and postulates, and include personal judgements, such as on depreciation and inventory valuation.—
18I. Equity and Liabilities: 1. Shareholders’ funds — (a) Share capital ₹8,00,000 (b) Reserves and surplus ₹66,000; 2. Non-current liabilities — Long-term borrowings ₹4,00,000; 3. Current liabilities — (a) Trade payables ₹48,000 (b) Short-term provisions ₹38,000; total ₹13,52,000
II. Assets: 1. Non-current assets — (a) Property, plant and equipment ₹11,15,000, Intangible assets ₹78,000 (b) Non-current investments ₹31,000; 2. Current assets — (a) Inventories ₹31,000 (b) Trade receivables ₹30,000 (c) Cash and cash equivalents ₹67,000; total ₹13,52,000		reserves and surplus ₹32,000 + ₹34,000; both sides total ₹13,52,000
19I. Revenue from operations ₹27,00,000; II. Other income ₹10,000; III. Total income ₹27,10,000
IV. Expenses: materials ₹18,03,000, employee benefits ₹3,00,000, finance costs ₹12,000, depreciation ₹25,000, other expenses ₹2,20,000; total ₹23,60,000
V. Profit before tax ₹3,50,000; tax ₹87,500; profit for the period ₹2,62,500		₹27,10,000 − ₹23,60,000 = ₹3,50,000; × 75/100
20(a) Current assets (b) Current liabilities (c) Non-current liabilities—