How debentures are different from shares | Class 12 Accountancy - Company Accounts and Analysis of Financial Statements Chapter Issue and Redemption of Debentures, Issue and Redemption of Debentures NCERT Solutions

How will you disclose the following items in the Balance Sheet of a company;
(i) Loose tools
(ii) Uncalled liability on partly paid-up shares
(iii) Debentures redemption reserve
(iv) Mastheads and publishing titles                                                                        (v) 10% debentures
(vi) Proposed dividend
(vii) Share forfeited account
(viii) Capital redemtion reserve
(ix) Mining rights
(x) Work-in-progress

The current ratio provides a better measure of overall liquidity only when a
firm’s inventory cannot easily be converted into cash. If inventory is liquid, the
quick ratio is a preferred measure of overall liquidity. Explain.

Explain the usefulness of trend percentages in interpretation of financial performance of a company.

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

What do you understand by analysis and interpretation of financial statements? Discuss its importance.

Describe the different techniques of financial analysis and explain the limitations of financial analysis.

What are liquidity ratios? Discuss the importance of current and liquid ratio.

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors

What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

State the importance of financial statements to
(i) shareholders
(ii) creditors
(iii) government
(iv) investors

Describe the meaning of ‘Debenture Issued as Collateral Securities’. What accounting treatment is given to the issue of debentures in the books of accounts?

Explain in detail about the significance of the financial statements.

What relationships will be established to study?
(a) Inventory Turnover (b) Debtor Turnover
(c) Payables Turnover (d) Working Capital Turnover

Explain the limitations of financial statements.

The liquidity of a business firm is measured by its ability to satisfy itslong-
term obligations as they become due. What are the ratios used forthis purpose?

What is the importance of comparative statements? Illustrate youranswer with particular reference to comparative income statement.

Explain the different terms for the issue of debentures with reference to their redemption.

‘Financial statements reflect a combination of recorded facts, accounting
conventions and personal judgements’ discuss.

What are liquidity ratios? Discuss the importance of current and liquid ratio.