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Find the heads and… (Class 12 Accountancy SQP 2024-25, Q31)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 3 marks · Short answer

CBSE Class 12 Accountancy sample paper 2024-25: question 31

From the official CBSE sample question paper for 2024-25, 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

Find the heads and sub-heads under which the following items will appear in the balance sheet of a company as per Schedule III, Part I of Companies Act, 2013?
a) Furniture and Fixture
b) Advance paid to contractor for building under construction
c) Accrued Income
d) Loans repayable on demand to Bank
e) Employees earned leaves payable on retirement
f) Employees earned leaves encash able

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

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

Hint 1

Capital advances are long-term loans and advances, not current assets.

Hint 2

Leave encashable now is short-term; leave payable on retirement is long-term.

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. (a) Furniture and fixtures: Non-current Assets, Property, Plant and Equipment. (b) Advance to contractor for building under construction: Non-current Assets, Long-term Loans and Advances (a capital advance).

    1 mark

  2. (c) Accrued income: Current Assets, Other Current Assets. (d) Loans repayable on demand to bank: Current Liabilities, Short-term Borrowings.

    1 mark

  3. (e) Earned leave payable on retirement: Non-current Liabilities, Long-term Provisions. (f) Earned leave encashable: Current Liabilities, Short-term Provisions.

    1 mark

Answer: Furniture: NCA, PPE; advance to contractor: NCA, Long-term Loans and Advances; accrued income: CA, Other Current Assets; loans repayable on demand: CL, Short-term Borrowings; leave on retirement: NCL, Long-term Provisions; leave encashable: CL, Short-term Provisions

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 2024-25: 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.