Class 12 Accountancy - HARYANA
Financial Statements of a Company
The chapter 'Financial Statements of a Company' in Class 12 Accountancy under the Haryana Board (BSEH) covers the preparation and presentation of financial statements as per Schedule III of the Indian Companies Act, 2013. Students learn to prepare the Statement of Profit and Loss and the Balance Sheet using a prescribed vertical format. This chapter is vital for board exams as it builds the foundational knowledge required for financial statement analysis, accounting ratios, and cash flow statements, carrying significant weightage in the final examination.
Start Learning FreeKey Concepts
Balance Sheet of a Company
A financial statement showing the assets, liabilities, and equity of a company at a specific date, prepared in a vertical format under Schedule III.
Statement of Profit and Loss
A statement that shows the revenue from operations, other incomes, and various expenses of a company to arrive at the net profit or loss for the accounting period.
Shareholders' Funds
The equity portion of the balance sheet, comprising Share Capital, Reserves and Surplus, and Money Received against Share Warrants.
Non-Current Liabilities
Long-term debts and obligations of the company that are not due for payment within 12 months from the date of the balance sheet, such as Long-term Borrowings.
Current Assets
Assets held for trading, realization, or short-term use, including Current Investments, Inventories, Trade Receivables, and Cash and Cash Equivalents.
Important Formulas
Board Exam Info
In the Haryana Board (BSEH) Class 12 Accountancy exam, this chapter typically carries around 6 to 8 marks. Questions usually include objective-type questions, 1-mark or 3-mark questions on the classification of various items under major heads and sub-heads of the Balance Sheet and Statement of Profit and Loss, and practical problems requiring the preparation of financial statements.
Frequently Asked Questions
Is the vertical format compulsory for the Balance Sheet in BSEH exams?
Yes, as per Schedule III of the Companies Act, 2013, companies must prepare their Balance Sheet and Statement of Profit and Loss in the prescribed vertical format.
Where do we show 'Securities Premium' in the company Balance Sheet?
Securities Premium is shown under the major head 'Shareholders' Funds' and sub-head 'Reserves and Surplus'.
What is the difference between 'Revenue from Operations' and 'Other Income'?
Revenue from Operations refers to income generated from the primary business activities of the company (like sales or service charges), whereas Other Income includes secondary incomes like interest received, dividend received, or profit on the sale of fixed assets.
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