Chapter No. 1 – Financial Statements of a Company – V K Publication Class +2 (Part 2) – Solutions

The Financial Statements of a Company include three numbers of statements which are discussed in this article today: 

What are the Financial Statements of a Company:

According to the accounting policies, practices, and accounting standards, we have to prepare the financial statements of a company at the end of each financial year. Section 129 of the Company Act, 2013, prescribed the format of the balance sheet and profit and loss account(Income statement) in the Schedule III of the Company Act 2013.

Section 2(4) of the Company Act, 2013 includes the following financial statements: 

1. Balance Sheet
2. Profit and loss account
3. Notes to Accounts
4. Cash Flow Statement

Definitions of Financial Statements of a Company: 

“The Financial Statement Provide a summary of accounts of a business enterprise, the Balance Sheet reflects the Assets, Liabilities, and capital as on a certain date and the income statement shows the results and operation during a certain period.” 

– John N. Myer

“Financial Statement is the end product of financial accounting prepared by the accounts of a business enterprise that purport to reveal the financial position of the enterprise, the result of its recent activities, and an analysis of what has been done with earnings.”

– Smith and Ashburne

Check out the full article: –

Financial Statements of a Company and Its formats

Chapter No. 1 – Financial Statements of a Company – V K Publication Class +2 (Part 2) – Solutions

Question-wise solution of all Questions of Chapter No. 1 – Financial Statements of a Company – V K Publication Class +2 (Part 2) – Solutions are shown below: –

Check out solutions of other accounts books of Class 12