Chapter No. 1 – Financial Statements of a Company – USHA Publication Class +2 (Part 2) – Solution

The Financial Statements of a Company includes three numbers of statement these are discussed in this topic: 

What are the Financial Statements of a Company:

According to the accounting policies, practices, and accounting standards, we have to prepare 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 scheduled 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 reflecting the Assets, Liabilities, and capital as on a certain date and income statement showing 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 – USHA Publication Class +2 (Part 2) – Solution

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