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Classify the… (Class 12 Accountancy SQP 2023-24, Q31)

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AccountancyCBSE Class 12 · Sample paper, session 2023-24 · 3 marks · Short answer

CBSE Class 12 Accountancy sample paper 2023-24: question 31

From the official CBSE sample question paper for 2023-24, section B-I, question 31, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q31 · 3 marks · Short answerFinancial Statements of a Company

Classify the following items under Major heads and Sub heads (If any) in the balance sheet of a Company as per schedule III of the Companies Act 2013.
i. Loose Tools
ii. Loan repayable on demand
iii. Provision for Retirement benefits
iv. Pre-paid Insurance
v. Capital advances
vi. Shares in Listed Companies

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Ask whether the item is settled or used within 12 months.

Hint 2

Retirement benefits are paid far in the future.

Hint 3

Shares held as investments (not for trading) are non-current.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (i) Loose Tools: Current Assets, sub-head Inventories. (ii) Loan repayable on demand: Current Liabilities, Short-term Borrowings.

    1 mark

  2. (iii) Provision for retirement benefits: Non-current Liabilities, Long-term Provisions. (iv) Prepaid insurance: Current Assets, Other Current Assets.

    1 mark

  3. (v) Capital advances: Non-current Assets, Long-term Loans and Advances. (vi) Shares in listed companies: Non-current Assets, Non-current Investments.

    1 mark

Answer: Loose tools: CA, Inventories; loan repayable on demand: CL, Short-term Borrowings; provision for retirement benefits: NCL, Long-term Provisions; prepaid insurance: CA, Other Current Assets; capital advances: NCA, Long-term Loans and Advances; shares in listed companies: NCA, Non-current Investments

Where the marks are

  • ½ mark for each correctly classified item (3 marks)

Revise the chapter

Practise this chapterBoard-style questions from Financial Statements of a Company, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.