Disclosures relating to share capital are to be given in ___.

Balance sheet

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Statement of profit & loss

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Notes to accounts

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None of these

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Solution

The correct option is C
Notes to accounts

Disclosures relating to share capital are to be given in notes to accounts.

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Similar questions

Q. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).

Assertion (A) - Any reserves or accumulated profits/losses appearing in the balance sheet should be transferred to the partner’s capital accounts in an old ratio.

Reason (R) - Accumulated profits/losses appear in the balance sheet after a change in profit-sharing ratio.

[0.88 marks]

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

Olympiad Ltd. has an opening debit balance of Rs. 5,00,000 in Reserves and Surplus as Balance of Statement of Profit & Loss. It earned a profit of Rs. 8,00,000 for the year ended 31st March, 2017. How would you show these items in the Balance Sheet and notes to accounts ?

Galaxy Ltd. has the following balances on 1st April, 2016 :

Rs.

General Reserve 4,50,000

Statement of Profit & Loss 2,00,000

During the year ended 31st March, 2017, it incurred a loss of Rs. 3,20,000. How would you show these items in the Balance Sheet and notes to accounts ?

Q. A and B are in partnership sharing profits and losses in the proportion of 2/3rd and 1/3rd respectively . Their Balance Sheet as at 31st March, 2018 was: Cash ₹ 1,000; Sundry Debtors ₹ 15,000; Stock ₹ 22,000; Plant and Machinery ₹ 4,000; Sundry Creditors ₹ 2,000; Bank Overdraft ₹ 15,000; A's Capital ₹ 15,000; B's Capital ₹ 10,000.
On 1st April, 2018 they admitted into partnership on the following terms:
(a) C to purchase one-quarter of the goodwill for ₹ 3,000 and provide ₹ 10,000 as capital .
C brings in necessary cash for goodwill and capital.
(b) Profits and Losses are to be shared in the proportion of one-half to A , one-quarter to B and one quarter to C .
(c) Plant and Machinery is to be reduced by 10% and ₹ 500 are to be provided for estimated Bad Debts. Stock is to be taken at a valuation of ₹ 24,940.
(d) By bringing in or withdrawing cash the capitals of A and B are to be made proportionate to that of C on their profit-sharing basis.
Prepare necessary Ledger Accounts in the books of the firm relating to the above arrangement and submit the opening Balance Sheet of the new firm.

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Disclosures relating to share capital are to be given in ___.

The correct option is C Notes to accounts Disclosures relating to share capital are to be given in notes to accounts.

The correct option is C
Notes to accounts

Disclosures relating to share capital are to be given in notes to accounts.