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Unit 14: Preparation of Final Accounts
14.5 Review Questions Notes
1. Explain the key books of accounts of a company.
2. State the preparation of profit and loss account.
3. What are the key requirements of Schedule VI of Companies Act concerning the profit and
loss account?
4. Prepare Profit and Loss Account as per Companies Act (take imaginary figures).
5. Explain the contingent liabilities. Give three examples of it.
6. What are the different provisions regarding depreciation?
7. Classify the following items under different heading of the balance sheet:
(a) Share Premium Account (b) Bank Overdraft
(c) Unclaimed Dividend (d) Proposed Dividend
8. Give the different forms of the balance sheet
9. Prepare the vertical form of balance sheet.
10. Give the items of Profit & Loss Appropriation A/c.
11. Give a specimen form of Balance Sheet and Profit and Loss A/c as per Companies Act.
12. Prepare Profit and Loss A/c and Profit and Loss Appropriation Account of a company with
loss Appropriation Account of a company with imaginary figures.
13. What are the rules regarding the preparation and presentation of the final account of a
company under the Companies Act? Explain.
14. Prepare a Proforma of Balance Sheet in horizontal form as per requirement of the Schedule
VI of the Companies Act, 1956.
15. Mention the requirement of Schedule VI (Parts I and II) of the Companies Act, 1956 in
respect of-
(i) Fixed Assets
(ii) Investments
(iii) Turnover
(iv) Contingent Liabilities
(v) Debtors
16. What do you mean by ‘Divisible profit’? How are they calculated? Explain.
17. Explain the term ‘Dividend’. Give the various provisions of Indian Companies Act
governing the declaration and payment of dividend.
18. What is interim dividend? Under what circumstances will it be given?
Practical Questions:
1. Calculate the maximum account that can be distributed as dividend for the year 2005
according to Companies (Declaration of Dividend out of Reserve) Rules, 1975 from the
following data:
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